Finding 370485 (2023-001)

-
Requirement
L
Questioned Costs
$1
Year
2023
Accepted
2024-02-26

AI Summary

  • Issue: There is a deficiency in internal controls regarding the calculation of allowable costs for Provider Relief Funds, specifically in direct expenses.
  • Trend: This indicates a growing concern about compliance with regulations related to allowable expenses, which could lead to financial discrepancies.
  • Recommendation: Strengthen internal controls and review compliance processes to ensure accurate calculation of allowable costs moving forward.

Finding Text

Calculation of Provider Relief Funds Allowable Costs-Direct Expenses – Deficiency in Internal Control over Compliance (Activities Allowed)

Corrective Action Plan

We have revised the calculation of the Paid Annual Leave award and verified that it uses the pay rates in effect at the time of the award for all employees. We confirmed that no other expenses for the COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (“Provider Relief Fund”) reporting involved costs subject to similar point in time report parameters. The change to this cost item does not impact the full utilization of the Provider Relief Fund due to the presence of other expenses in the same category along with unreimbursed expenses and unused lost revenues remaining after the funds were exhausted. The discrepancy was due to imprecise instructions in the request for information. In the future, such ad hoc requests and the responsive reports will be verified by the Executive Director of Corporate Accounting before use.

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $23.92M
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $240,084
21.027 Coronavirus State and Local Fiscal Recovery Funds $179,409
93.110 Maternal and Child Health Federal Consolidated Programs $145,463
93.359 Nurse Education, Practice Quality and Retention Grants $142,114
93.917 Hiv Care Formula Grants $134,318
93.107 Area Health Education Centers Point of Service Maintenance and Enhancement Awards $111,044
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $101,241
93.855 Allergy, Immunology and Transplantation Research $80,497
93.837 Cardiovascular Diseases Research $31,032
93.262 Occupational Safety and Health Program $29,925
93.969 Pphf Geriatric Education Centers $1,100