Finding 24394 (2022-001)

2022-001 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). Condition: The District included certain COVID-19 related expenditures as requests for financial assistance from other agencies. Questioned costs: None Context: Certain expenses reported by the District in the period 2 PRF report were also provided to other agencies as a request for financial assistance. A portion of the request to the second source was approved and funded subsequent to September 30, 2022, thus a portion of the Period 2 PRF expenses could be reimbursed by both PRF and the second source. The total amount to be approved and granted by the secondary source has not yet been finalized. Cause: Internal controls of compliance were not in place to ensure the District did not allocate expenses to more than one funding source. Effect: Expenses were allocated to more than one funding source. Identification as a repeat finding: Not a repeat finding. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure distributions are not used to reimbursed expenses that have been reimbursed from other sources or that other sources are obligated to reimburse. Views of responsible officials and planned corrective actions: See attached corrective action plan for the District?s response to finding.