Finding 33763 (2022-002)

2022-002 Federal agency: Department of Health and Human Services (DHHS) Federal program title: Provider Relief Fund and American Rescue Plan Rural Distribution Assistance listing number: 93.498 Award period: Period 2, July 1, 2020 ? December 31, 2020 Type of finding: Material Weakness In Internal Control Over Compliance and Other Matters Compliance requirement: Allowable Costs Criteria: Provider Relief Funds (PRF) are to be used to prevent, prepare for, and respond to coronavirus. Provider Relief Funds contained specific terms and conditions requiring recipients to certify that payments would only be used for these certain purposes. DHHS issued guidance and examples on types of allowable expenses. Condition: The Organization claimed expenses in its reporting to DHHS that were not eligible expense under the terms and conditions of PRF. Context: During the audit, it was determined that 3 of 60 expenditures claimed did not meet the criteria developed under the Department of Health and Human Services guidelines for the use of Provider Relief Funds. The total amount of these costs was $164.16. Cause: Management oversight. Effect: The Organization claimed costs that were not eligible for the program. Recommendation: We recommend management develop proper controls over the review of federal expenditures for accuracy and allowability under the criteria provided by the Department of Health and Human Services. However, it was noted that the Organization has enough excess lost revenue to cover the disbursements noted above. View of Responsible Officials: Management will review all expenditures to determine allowability under the specific grant's rules and regulations.