Finding 32351 (2022-004)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2022-12-29
Audit: 27255
Organization: Spooner Health System (WI)

AI Summary

  • Core Issue: There were discrepancies in payroll expenditures reported for the Provider Relief Fund, with 13 out of 40 instances showing inaccuracies.
  • Impacted Requirements: The Provider Relief Fund guidelines prohibit using funds for unsupported or inaccurate costs.
  • Recommended Follow-Up: Management should review the reimbursement requests against the guidelines and ensure accurate reporting moving forward.

Finding Text

2022-004 Allowable Costs Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Fund AL Number: 93.498 Award Period: April 1, 2020 ? June 30, 2020 (Period 1) and July 1, 2020 ? December 31, 2020 (Period 2) Type of Finding: Significant deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Provider Relief Fund cannot be used to cover unsupported or inaccurate expenditures. Condition and Context: During our testing we noted 13 instances out of a sample of 40 where there were differences in the reported payroll expenditures compared to the support received. Cause: There were changes in employee wage rates that didn?t get updated in the COVID-19 screening logs. Effect: Potential to receive excess reimbursement from the Provider Relief Fund. Questioned Costs: $257 Repeat finding: No Recommendation: We recommend that management review the Provider Relief Fund guidelines to make sure amounts requested for reimbursement are in line with the guidelines and tie back to support. Management?s Response: Management will review reporting requirements and policies to ensure proper reporting in future periods. However, it is noted there was sufficient lost revenue to support the PRF distributions received.

Corrective Action Plan

2022-004 Provider Relief Fund ? Assistance Listing No. 93.498 Recommendation: We recommend that management review the Provider Relief Fund guidelines to make sure amounts requested for reimbursement are in line with the guidelines and tie back to support. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: During the onset of the COVID-19 pandemic and the distribution of the PRF dollars, there were many unknowns and many elements changed including criteria and timelines. The System will continue to review the PRF Terms and Conditions and understand these to the best of our knowledge. However, it is noted that there was sufficient lost revenue to support the PRF distributions received. Name(s) of the contact person(s) responsible for corrective action: Rebecca Busch, CFO Planned completion date for corrective action plan: We look to HRSA for guidance on how to correct the Period 1 report or will correct the error in a future reporting period. If the U.S. Department of Health and Human Services has questions regarding this plan, please call Rebecca Busch, CFO at 715-939-1732.

Categories

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

Other Findings in this Audit

  • 32352 2022-003
    Material Weakness
  • 32353 2022-002
    Material Weakness
  • 608793 2022-004
    Significant Deficiency
  • 608794 2022-003
    Material Weakness
  • 608795 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $4.24M