Finding 41552 (2022-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-16
Audit: 46363
Auditor: Forvis LLP

AI Summary

  • Core Issue: The Organization inaccurately reported $815,135 in provider relief payments, claiming expenses that were not incurred.
  • Impacted Requirements: Reporting must be accurate and complete as per 45 CFR 75.342, including proper calculation of lost revenues.
  • Recommended Follow-Up: Implement stronger internal controls for reporting accuracy and submit the required narrative for lost revenue calculations to the Health Resources and Services Administration.

Finding Text

U.S. Department of Health and Human Services Federal Assistance Listing Number 93.498 Provider Relief Fund Criteria: Reporting (45 CFR 75.342) The Organization is required to prepare and submit period one provider relief fund report to the U.S. Department of Health and Human Services. This report is to be prepared using accurate financial information and submitted by the deadline established. Condition: The Organization incorrectly reported all provider relief payments were applied to unreimbursed expenses attributable to COVID-19 within the HHS Provider Relief Fund (PRF) portal. Total expenditures reported had not been incurred by the Organization. Questioned Costs: Unknown. Context: The Organization inaccurately reported for period one $815,135 of Total Other PRF Expresses. Actual expenses incurred were $304,018. The Organization's calculated lost revenue for period one was reported as $0 but should have reported lost revenues using Option III. Effect: Expenses and quarterly lost revenues were improperly reported in the PRF portal. Cause: The Organization?s internal controls were not adequate to detect reporting errors. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend implementing controls to ensure amounts reported are accurate, complete and reviewed. Additionally, we recommend Management submit their lost revenue calculation and narrative to the Health Resources and Services Administration. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding and recommendation and will implement controls to ensure all reporting is reviewed for accuracy. Corrective action plan was completed in September 2021 at the next PRF filing period and the correct numbers were reported. Actual lost revenue for period one calculated under the alternative method of calculating lost revenue attributable to coronavirus was $511,117. Under the alternative method, the Organization is required to submit a narrative describing its method of estimated lost revenues which was not submitted.

Corrective Action Plan

CABUN Rural Health Services, Inc. Responsible Party: Judy Southall, CFO Audit Period Ending: March 31, 2022 Date of Response: February 27, 2023 Reference Number: 2022-003 Condition - The Organization reported inaccurate COVID-19 related expenditures and lost revenues within the HHS Provider Relief Fund (PRF) portal. Expenditures reported did not have adequate supporting documentation. Views of Responsible Officials and Planned Corrective Actions - Management concurs with the finding and recommendation and will implement controls to ensure all reporting is reviewed for accuracy. Status update - Corrective action plan was completed in September 2021 at the next PRF filing period and the correct numbers were reported.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 617994 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.527 Grants for New and Expanded Services Under the Health Center Program $3.70M
93.224 Covid-19 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care Centers) $904,648
93.498 Covid-19 Provider Relief Fund $878,729
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care Centers) $203,590