Finding Text
Department of Health and Human Services
Federal Assistance Listing/ # 93.498
COVID-19 Provider Relief Fund and
American Rescue Plan (ARP) Rural Distribution
Applicable Federal Award Number and Year – Period 4 # TIN #237169043
Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Reporting
Significant Deficiency in Internal Control over Compliance
Criteria –2 CFR 200.303(a) establishes that an entity must establish and maintain effective internal control over
a federal award that provides assurance that the entity is managing the federal award in compliance with
federal statutes, regulations, and conditions of the federal award.
Condition – The Facilities claimed equipment costs under the Provider Relief Fund program for a project that
was not complete at the end of the period of availability, or December 31, 2022.
Cause – The Facilities’ internal control process in place to ensure review and approval of expenses claimed
under the federal program and the report submitted to the Department of Health and Human Services for
Period 4, did not detect the error.
Effect – Costs were improperly included within the Period 4 report and caused the reporting submitted to the
Department of Health and Human Services to be inaccurate.
Questioned Costs – $15,019.
Context/Sampling – Detail testing was completed over $1,099,098 of the expenses for activities allowed and
unallowable and allowable cost/cost principles. A nonstatistical sample of 4 items were selected for detail
testing, which accounted for $991,840 of $1,099,098 of direct program expenditures. One $15,019 invoice, net
of reimbursed costs within the sample was deemed a questioned cost, as the equipment was not placed into
service as of December 31, 2022. There is a known error of $15,019 for all costs claimed on the Period 4 report
related to the equipment.
Repeat Finding from Prior Year – No.
Recommendation – We recommend that management implement procedures to ensure the costs claimed meet
the requirements of the federal program. In addition, we recommend that the Facilities enhance internal control
policies to ensure all costs are reviewed to ensure that they are within the period of availability defined by the
terms and conditions.
Views of Responsible Officials – Management agrees with the finding.