Finding 399003 (2023-001)

-
Requirement
ABL
Questioned Costs
$1
Year
2023
Accepted
2024-05-30
Audit: 307633
Auditor: Forvis LLP

AI Summary

  • Core Issue: Expenditures reported to HRSA for the COVID-19 Provider Relief Fund were overstated by $1,249 due to lack of supporting documentation.
  • Impacted Requirements: Reporting must comply with Pub. L. No. 116-136, which outlines allowable costs and necessary documentation.
  • Recommended Follow-Up: The Corporation should maintain accessible documentation for all expenditures, even after bank or credit card accounts are closed.

Finding Text

Federal Program – COVID-19 Provider Relief Fund, ALN 93.498, Award Year 2023 Criteria or specific requirement – Activities Allowed/Allowable Costs and Reporting – Pub. L. No. 116-136, 134 Stat. 563 Condition – Expenditures reported to HRSA were not in accordance with Pub. L. No. 116-136, 134 Stat. 563. Questioned Costs – $1,249 was determined to be over-reported to the federal program due to lack of support for expenditures as being related to COVID-19. This amount was calculated based on the actual expenditures unable to be supported in the sample. Context – Out of the population of 572 expenditures reported to HRSA, a sample of 40 expenses was selected for testing. The Corporation included four expenditures in the sample that no longer can be supported by available documentation totaling $1,249. Our sample was not, and was not intended to be, statistically valid. Effect – Expenditures reported to HRSA were overstated. Cause – The Corporation closed a credit card account used to purchase items included as expenses in the portal submission to HRSA. Because this account was closed, the Corporation no longer has access to support for these expenditures to show they were appropriately included in the portal submission. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The Corporation should ensure that appropriate support for expenditures are maintained in a manner that they can be accessed regardless of close of bank or credit card accounts. Views of Responsible Officials and Planned Corrective Actions – The Corporation agrees with the finding and will ensure that all support for expenditures are maintained in a manner that can be accessed regardless of closure of accounts.

Corrective Action Plan

We recognize the findings by FORVIS. Following a merger, the corporation closed its corporate credit card account, as a result, did not have access to the receipts of the expenditures. We do acknowledge the expenditures of the organization were greater than the disbursement received by HRSA. In May of 2023 the corporation enrolled in a new corporate credit card system through our banking institute. This new system offers enhanced features, including automatic receipt retention for all transactions and a detailed audit trail for charge approvals. In the event of an account closure, we will have the convenient option to download receipts for all transactions. Radana Kollehner is the individual responsible overseeing the corrective action plan. Her email address is RKOLLEHNER@FrontPorch.net and contact phone number 925-956-7366. Sincerely, Eduardo Salvador Chief Financial Officer

Categories

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $1.13M