Finding Text
Federal Financial Assistance Listing #93.498
COVID‐19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution
Applicable Federal Award Number and Year – Period 1 and Period 2 TIN #201209404, Period 1
and Period 2 TIN #208729268, Period 2 TIN #262181659, Period 1 and Period 2 TIN
#273274611, Period 2 TIN #800015864
Reporting
Material Weakness in Internal Control Over Compliance and Material Noncompliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective
internal control over the federal award that provides assurance that the entity is managing the
federal award in compliance with federal statutes, regulations, and conditions of the federal
award.
Condition: The Organization selected option ii to calculate lost revenue which consists of a
comparison of actual results during the period of availability to the approved budget. The
Organization did not have a budget for the entire reporting period that was approved prior to
March 27, 2020.
Cause: The Organization did have an approved budget prior to March 27, 2020, for calendar year
2020, but the approved budget did not cover the entire period of availability.
Effect: The reporting to HHS for Period 1 and 2 was considered incorrect. The Organization did
not have a budget approved prior to March 27, 2020, for the entire period of availability.
Questioned Costs: None reported.
Context: Key line items were tested on the Period 1 and 2 Department of Health and Human
Services special reports.
Repeat Finding from Prior Years: No
Recommendation: We recommend that management implement procedures to ensure the lost
revenue calculation claimed meet the requirements of the federal program.
Views of Responsible Officials: Management agrees with the finding.