Finding 30134 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
$1
Year
2022
Accepted
2023-02-27
Audit: 31620
Organization: St. Andrew's at Francis Place (MO)

AI Summary

  • Core Issue: St. Andrew's at Francis Place reported the same COVID-19 expenses in two different periods, leading to an overstatement of approximately $32,000.
  • Impacted Requirements: The organization failed to comply with the allowable costs criteria set by the CARES Act, affecting their internal controls over compliance.
  • Recommended Follow-Up: Implement stronger controls to ensure expenses are reported correctly according to the latest HHS guidelines.

Finding Text

2022 ? 001 Federal agency: U.S. Department of Health and Human Services Other Programs Federal program title: COVID-19 Provider Relief Funding Assistance Listing Number: 93.498 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: Period 1 & Period 2 Type of Finding: Significant Deficiency in Internal Control and Other Matter in Compliance Compliance Requirement: Allowable Costs Criteria or specific requirement: 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 used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for expenses or lost revenues that are attributable to coronavirus. Condition: St. Andrew?s at Francis Place?s (the Organization) internal controls over compliance related to COVID-19 expenditures were not effective as the Organization reported the same COVID-19 expenses in the Period 1 and Period 2 reports, thus overstating the amount of reported COVID-19 expenses by approximately $32,000. Management has identified that St. Andrew?s at Francis Place has more than a sufficient amount of COVID-19 expenditures and lost revenues related to COVID-19 to offset this difference Questioned costs: None Context: Based on the portal configuration St. Andrew?s at Francis Place believed accumulated costs, since the beginning of the pandemic, should be entered into Period 2 vs. just the incremental amounts exclusive of Period 1. Cause: The design of the portal was unclear as the reporting for expenses and lost revenues are handled differently. Effect: The Organization?s internal controls around compliance were not effective in identifying allowable expenses associated with COVID-19. Repeat Finding: N/A Recommendation: We recommend St. Andrew?s at Francis Place design controls to ensure that expenses are reported in accordance with latest HHS guidelines. Views of responsible officials: There is no disagreement with the audit finding. Management has identified that St. Andrew?s at Francis Place has more than a sufficient amount of COVID-19 expenditures and lost revenues related to COVID-19 to offset this difference.

Corrective Action Plan

U.S. Department of Health and Human Services St. Andrew?s at Francis Place (?The Organization?) respectfully submits the following corrective action plan for the year ended May 31, 2022. Audit period: June 1, 2021 ? May 31, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HEALTH AND HUMAN SERVICES 2022 ? 001 COVID-19 Provider Relief Funding Recommendation: We recommend the Organization design controls to ensure that reporting is completing in accordance with latest HHS guidelines. Explanation of disagreement with audit finding: Management has identified that St. Andrew?s at Francis Place has more than a sufficient amount of COVID-19 expenditures and lost revenues related to COVID-19 to offset this difference. The design of the portal was unclear as the reporting for expenses and lost revenues are handled differently. The amount in reference is less than 5% of total Provider Relief Funds reported. Action taken in response to finding: The Organization has already addressed this matter, through experience with the portal, continued education of HHS guidance, and will ensure that controls are put into place to present quarterly expenses in accordance with HHS guidelines. Name of the contact person responsible for corrective action: Joseph Girardi, CFO. Planned completion date for corrective action plan: March 1, 2023 If the Department of Health and Human Services has questions regarding this plan, please call Joseph Girardi at 314-802-1938.

Categories

Questioned Costs Allowable Costs / Cost Principles Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 606576 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $750,891