Finding Text
Finding 2021-002
Material Weakness and Material Noncompliance over Reporting
Department of Health and Human Services
COVID-19 Provider Relief Funds Assistance Listing 93.498
Criteria: The Department of Health and Human Services provided terms and conditions associated with the
Provider Relief Fund (PRF). The use of the PRF distributions is required to be reported to the Department of
Health and Human Services by recipients through the PRF reporting portal by and by nature and/or function.
Management should have effectively designed controls in place to prevent, or detect and correct, material
noncompliance with the reporting requirements of PRF.
Condition: Management submitted expenses through the Department of Health and Human Services PRF
reporting portal that did not reconcile to the underlying expense details by nature and/or function as provided by management, and therefore did not comply with PRF reporting requirements. Management’s process for
reporting through the PRF portal lacked effective controls to prevent, or detect and correct, such reporting
noncompliance on a timely basis.
Questioned Costs: N/A
Context: For PRF reporting period 1, which include periods of availability that ended during the Authority’s fiscal
year ended September 30, 2021, management reported through the PRF reporting portal payroll expenses
totaling $1,720,114, non-payroll expenses totaling $4,164,457 and lost revenue of $4,764,131. The results of
audit procedures determined that the expenses were misclassified between categories as there were actually
$1,676,415 in payroll expenses and $4,208,156 in non-payroll expenses included in the respective populations.
Effect: Inaccurate information was reported through the Department of Health and Human Services PRF
reporting portal with respect to classification of expenses by nature and/or function, resulting in material
noncompliance with PRF reporting requirements.
Cause: Effective controls were not designed and implemented sufficient to prevent, or detect and correct,
inaccurate reporting and classification of coronavirus-related expenses by nature and/or function to the
Department of Health and Human Services through the PRF reporting portal.
Identification of Prior Year Audit Findings: N/A
Recommendation: Effective controls over compliance should be implemented to ensure the classification of
allowable costs reported to the Department of Health and Human Services through the PRF reporting portal is
accurate with respect to nature and/or function, and in compliance with PRF reporting requirements.
Views of responsible officials: Management agrees with the findings and will implement controls to ensure future
PRF reporting compliance. See management’s Corrective Action Plan.