Finding 21029 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-10-01

AI Summary

  • Core Issue: The District failed to report fund usage accurately for coronavirus-related expenses, violating federal guidelines.
  • Impacted Requirements: Funds must only cover unreimbursed health care expenses or lost revenues directly tied to coronavirus.
  • Recommended Follow-Up: Management should thoroughly review all expenditures before submitting reports to ensure compliance.

Finding Text

Condition: The District did not meet its reporting requirements to report the use of the funds to prevent, prepare for, and respond to coronavirus and that the payment shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus and not reimbursed by another source. Criteria: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be reported to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Context: During the audit, it was determined that the District used reimbursed expenses from reporting period 1 and 2 to report in period 4 to Health Resources and Services Administration for Provider Relief Funds. However, the District replaced these funds with other allowable unreimbursed expenses. Cause: Management oversight. Effect: The Organization is not in compliance with federal regulations and guidelines surrounding the reporting of the Provider Relief Funds. Recommendation: We recommend that management review expenditures before submitting to Health Resources and Services Administration.

Corrective Action Plan

Response: To address the noncompliance regarding the use of Covid-19 related relief dollars, the District will institute a more thorough expenditure reporting process. This process will involve methodical scrutiny of expenses before submission to HRSA and ensure sub reporting systems are accurate. By emphasizing this step, management can enhance accountability, prevent errors in reporting, and ensure that all submissions align with HRSA's guidelines and requirements. Responsible Party: Controller and Senior Accountant at Samaritan Healthcare. Estimated Completion: 12/31/2023

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 597471 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $6.21M
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $99,058