Finding 37944 (2022-001)

Criteria: The Hospital should have appropriate internal controls in place to ensure that reporting requirements are met and amounts utilized in reports are calculated accurately and in accordance with 45 CFR 75.342. Condition and Context: When compiling the Period 2 Provider Relief Fund (PRF) that was submitted during the year ended June 30, 2022, the Hospital discovered expenses included within unreimbursed expenses attributable to Coronavirus on the Period 1 report that were not allowable and expenses that were applied towards other grants. The Hospital also identified additional expenses that should have been included within the Period 1 report. Additionally, there was one selection from our allowable cost testing that was included in both the Period 1 report and the Period 2 report. Cause: Expense amounts reported were not accurately reviewed prior to report submission. Effect: Errors were made in reporting quarterly expenses on both the Period 1 and Period 2 reports. However, we note there was no impact to total funding received or retained by the Hospital due to the error as the Hospital has additional unreimbursed expenses attributable to Coronavirus that could have been applied within the reports. The total amount of funding recognized under other provider relief fund expenses and the amount reported per the Schedule of Expenditures of Federal Awards were accurate. Questioned Costs: None. Repeat Finding: This is not a repeat finding. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Review controls should be in place by someone other than the preparer of the report to ensure information is accurate prior to submission of the report. Views of Responsible Officials: Management will implement a process for the invoice detail to be reviewed for potential duplicate expenses by someone other than the preparer and a secondary cross validation of a sample set of data to ensure accuracy and compliance with reporting requirements.