Finding 396694 (2023-001)

Significant Deficiency
Requirement
H
Questioned Costs
$1
Year
2023
Accepted
2024-05-15
Audit: 306320
Auditor: Rsm US LLP

AI Summary

  • Core Issue: Swope Health Services used federal funds for costs incurred after the allowed period, violating grant rules.
  • Impacted Requirements: Expenditures must fall within the specified availability period of January 1, 2020, to June 30, 2023.
  • Recommended Follow-Up: Implement review procedures to ensure all costs align with the grant's period of availability.

Finding Text

2023-001 U.S. Department of Health and Human Services COVID-19 - Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution ALN 93.498 Federal Award Year: 2023 Type of Finding: Significant Deficiency Finding: Swope Health Services and Subsidiaries expended federal funding on an invoice with a service period outside of the Period of Availability for Period 5 of the Provider Relief Fund. Criteria: Provider Relief Fund disbursements are separated into various reporting periods based on the timing of the original payment received by the Organization. The Organization received funding under Period 5 that has a period of availability of January 1, 2020 to June 30, 2023. All expenditures reimbursed by the Period 5 funds must be incurred within this period. Condition: The Organization used PRF funding to cover the cost of a patient registration program for one year. The contract was paid for and signed during the period of availability but a portion of the cost of the program was not incurred until after June 30, 2023. Cause: The Organization did not have review controls in place to ensure that only expenditures with the applicable period of availability were allocated to the grant. Effect: Noncompliance with federal regulations over the period of allowability could impact future funding. Context: One invoice out of forty tested for this program was outside the period of availability. Questioned Costs: $80,813 Repeat Finding: No Recommendation: We recommend that the Organization implement procedures to properly review the period of availability when applying expenditures to federal grants. Management Response: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Identifying Number: 2023-001 Finding: Swope Health Services and Subsidiaries expended federal funding on an invoice with a service period outside of the Period of Availability for Period 5 of the Provider Relief Fund. Corrective Actions Taken or Planned: Management will evaluate and alter the accounts payable invoice review process as necessary to mitigate the risk of inaccurate recording of prepaid expenditures, as was the case in this finding. Management will consider the need to reorganize the assignment of duties as they pertain to the processing and review of invoices and vendor payments to ensure a sufficient level of review of material transactions to ensure accurate accounting of vendor payments. Person Responsible: Naimish Patel, CFO Anticipated Completion Date: Plan to be completed by December 31, 2024

Categories

Questioned Costs Period of Performance Reporting Significant Deficiency

Other Findings in this Audit

  • 973136 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.19M
93.498 Provider Relief Fund $847,471
14.267 Continuum of Care Program $646,345
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $408,838
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $309,301
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $305,340
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated and State Partnership Marketplaces $241,589
93.767 Children's Health Insurance Program $192,097
93.926 Healthy Start Initiative $165,098
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $63,443
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $55,556
93.778 Medical Assistance Program $33,746
93.530 Affordable Care Act - Teaching Health Center Graduate Medical Education Payments Program $12,603
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $7,176