Finding Text
Finding No. 2022-001 ? The 2021 Schedule of Expenditures of Federal Awards Amount Was Not Complete Assistance Listing Number: 93.498 ? COVID-19 Provider Relief Fund and American Rescue Plan Act Criteria: The Schedule of Expenditures of Federal Awards ("SEFA") is a required part of the financial statements under Title 2 U.S. Code of Federal Regulations ("CFR") Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). The Uniform Guidance requires the auditee to prepare the SEFA and the auditor to determine whether the SEFA is stated fairly in all material respects. Condition: Upon review of the 2021 Single Audit, HORNE noted that the total amount presented on the SEFA for COVID-19 Provider Relief Fund and American Rescue Plan Act for expenditures was incomplete. Cause: The Provider Relief Funds and American Rescue Plan Act funds were distributed out in six-month periods known as "payment received periods". Entities then had 12 months from the end of that payment received period in which to use the funds, also known as the "period of availability". Once the period of availability ended, entities were required to report the use of those funds within a three-month window or "reporting time period". Given the extended length on the use of these funds, HRSA released clarification on when these funds should be reported on the SEFA. Per that guidance, for entities with fiscal year ends of 12/31/2021, reporting Period 1 and 2 should be included on the 2021 SEFA. The 2021 single audit report did not include Period 2 funding. Effect: Failure to present the correct periods on the SEFA resulted in an incomplete SEFA pertaining to COVID-19 Provider Relief Fund and American Rescue Plan Act funds for fiscal year 2021. Questioned Costs: None Identification as a Repeat Finding: Not applicable Auditor's Recommendation: We recommend that the 2021 SEFA be corrected to include all period of availability expenditures for the fiscal year ended 12/31/2021 and, the audit testing be conducted and restated to cover the complete SEFA. Auditee's Response: Management will provide a complete 2021 SEFA and seek to obtain a restated audit to include funding and expenditures covering all periods of availability.