Finding 29997 (2022-001)

Section III - Federal Award Findings and Questioned Costs Item 2022-001 - Reporting U.S. Department of Health and Human Services, COVID-19: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (Federal Assistance Listing Number 93.498) Criteria The Coronavirus Aid, Relief, and Economic Security (CARES) Act and American Rescue Plan (ARP) Act of 2021 appropriated funds to reimburse eligible healthcare providers for healthcare related expenses or lost revenues attributable to COVID-19. These funds were distributed by Health Resources and Services Administration ("HRSA"). HRSA developed the Provider Relief Fund ("PRF") Reporting Portal to enable PRF and ARP Rural recipients to comply with mandatory reporting requirements. Statement of Condition The Organization's submission to the PRF Portal included inconsistencies with the accounting records in order to recognize the PRF funds under the lost revenue option. Questioned Costs None Context There were inconsistencies with the COVID-19 related reporting on the PRF Portal which led to the PRF portal not matching the respective accounting records. It is noted that the Organization had an adequate amount of lost revenue to earn the PRF funding received. Cause Due to turnover in the financial leadership position and due to the constant changes surrounding the guidance for PRF reporting, the Organization misinterpreted the guidance provided by HRSA PRF and ARP program. Effect The Organization did not complete the PRF Reporting Portal properly in accordance with guidance provided by HRSA PRF and ARP program and as a result the data on the report was not correct. Identification as a Repeat Finding Condition is a repeat finding. See finding 2021-003. Recommendation We recommend that the Organization strengthen their system of internal controls to ensure that all reporting is consistent with requirements and instructions as provided by regulatory agencies. Views of Responsible Official Management agrees with the audit finding and will strengthen internal controls and accountability to correct the deficiency.