Finding 386979 (2021-005)

Assistance Listing Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19: Provider Relief Fund Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - According to 2 CFR § 200.403, HealthSource must maintain adequate documentation to support the allowability of costs charged to the grant. Condition - HealthSource did not have controls in place to ensure the inputs in their Covid related expense spreadsheet that was used to input the amount of Other PRF Expenses reported in the portal submissions agreed to source documentation. Questioned Costs - None Context - The CFO created a spreadsheet to track HealthSource's Covid related payroll expenses using an incremental cost approach. To create this spreadsheet, the CFO used multiple formulas and pulled information from various summary level reports. There was no review completed on HealthSource's Covid related expense spreadsheet after the CFO prepared it. The spreadsheet was subsequently used by the CFO to input expenses into the portal submissions. Cause and Effect - Appropriate review of the Covid related expense spreadsheet was not completed to ensure the inputs in the report agreed to supporting documentation. As a result, the report contained several inconsistencies and it is not possible to determine whether the expenses are allowable under the grant agreement. Recommendation - We recommend HealthSource implement controls, including levels of review, to ensure reports are accurate and can be agreed back to source documentation. Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding and all future submissions will be reviewed by the chief executive officer and the president for accuracy and thoroughness prior to submission upload.