Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: COVID-19 Provider Relief Funds Assistance Listing Number: 93.498 Award Period: Period 2 ? Provider Relief Funds Type of Finding: Significant Deficiency in Internal Control over Compliance and Immaterial Noncompliance Compliance Requirement: Allowable Costs and Activities Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and activities. The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for direct expenses or lost revenues that are attributable to coronavirus. Condition: During our testing, we noted that the Organization did not meet its requirements to accurately report on the funds used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for direct expenses or lost revenues that are attributable to coronavirus. For the allowable costs and activities compliance requirement, costs should only be submitted for reimbursement by Provider Relief Funds if they were used to prevent, prepare for, and respond to coronavirus and are accurately supported by internal records. Questioned costs: $523. Context: During our testing, it was noted that the Organization reported infection control expenses in the Period 2 reporting submission that could not be fully supported by internal records of infection control expenses. For its submission, the Organization utilized daily COVID testing logs to compile a master schedule of the number of tests completed by each campus location that was then used to calculate and determine the amount of COVID wages to be reported against its infection control distributions that were received in Period 2. As a result, there were questioned costs determined from our audit of $523 for infection control expenses. The client has identified and isolated $523 of infection control expenses that were incurred in Quarter 3 of 2020 that were not reported during other Provider Relief Fund reporting submissions. Cause: Management oversight. Effect: While the Provider Relief Funds reporting submission was incorrect and management was unable to provide the support behind these infection control costs, they have other COVID expenses that could make up for the costs. Recommendation: The Organization should review all expense amounts entered into the reporting portal submission to ensure the amounts are accurate and agree to internal supporting documentation. Views of responsible officials: There is no disagreement with the audit finding.