FAC Explorer

Finding 393374 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-04-16
Audit: 303631
Organization: Community Health & Wellness Partners of Logan County (OH)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Incorrectly selected reporting option for Provider Relief Funds due to misunderstanding of budget approval requirements.
  • Impacted Requirements: Reporting must use a board-approved budget from before March 27, 2020; a second review of submissions is necessary.
  • Recommended Follow-Up: Enhance oversight by involving the CEO or Finance Committee in reviewing all grant reporting submissions.

Finding Text

Finding 2023-001 Federal program and specific federal award U.S. Department of Health and Human Services (HHS) 93.498 Provider Relief Fund and American Rescue Plan Rural Distribution Specific requirement Special Reporting of Provider Relief Funds (PRF) Reporting Portal Condition Under the terms and conditions of the Provider Relief Funds “option 2” for calculation of lost revenue using budgeted revenue compared to actual revenue, the amounts used for the budget must be based on a board approved budget prior to March 27, 2020, which covers the period of availability. The Organization utilized a budget for the period November 1, 2019, through October 31, 2020 that was board approved prior to March 27, 2020; however, the budget periods of November 1, 2020 through October 31, 2021 and November 1, 2021 through October 31, 2022 were not board approved prior to March 27, 2020. Accordingly, option 3 should have been indicated in the PRF reporting portal. In addition, it was noted that there was not a separate review of the information submitted to the reporting portal. Cause Due to the complexity of the PRF Reporting Requirements, the Organization made an error in selecting option 2 as the reporting method and there was not a second review of the information reported in the PRF reporting portal before submission. Effect or potential effect Option 2 verses Option 3 was selected on PRF reporting portal. Questioned costs None Repeat finding No Recommendation We recommend that management further review terms and conditions of grant reporting requirements and include others within the Organization to provide monitoring and oversight of reporting submissions. Management response Management agreed with the above comment and will include the involvement of the CEO or a Finance Committee member to review reporting submissions for all grant awards. Due to the unusual nature of the PRF reporting, we believe this issue of noncompliance is isolated.

Corrective Action Plan

Federal program and specific federal award U.S. Department of Health and Human Services (HHS) 93.498 Provider Relief Fund and American Rescue Plan Rural Distribution Specific requirement Special Reporting of Provider Relief Funds (PRF) Reporting Portal Condition Under the terms and conditions of the Provider Relief Funds “option 2” for calculation of lost revenue using budgeted revenue compared to actual revenue, the amounts used for the budget must be based on a board approved budget prior to March 27, 2020, which covers the period of availability. The Organization utilized a budget for the period November 1, 2019, through October 31, 2020 that was board approved prior to March 27, 2020; however, the budget periods of November 1, 2020 through October 31, 2021 and November 1, 2021 through October 31, 2022 were not board approved prior to March 27, 2020. Accordingly, option 3 should have been indicated in the PRF reporting portal. In addition, it was noted that there was not a separate review of the information submitted to the reporting portal. Cause Due to the complexity of the PRF Reporting Requirements, the Organization made an error in selecting option 2 as the reporting method and there was not a second review of the information reported in the PRF reporting portal before submission. Effect or potential effect Option 2 verses Option 3 was selected on PRF reporting portal. Questioned costs None Repeat finding No Recommendation We recommend that management further review terms and conditions of grant reporting requirements and include others within the Organization to provide monitoring and oversight of reporting submissions. Corrective action We agreed with the above comment and will include the involvement of the CEO or a Finance Committee member to review reporting submissions for all grant awards. Due to the unusual nature of the PRF reporting, we believe this issue of noncompliance is isolated. Questions regarding this corrective action plan should be addressed to Tara Bair, President/CEO at (937)599-1411.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 969816 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $300,408
93.498 Provider Relief Fund $214,891
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $19,850