Finding 42781 (2022-001)

COVID-19 Provider Relief Fund Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria or specific requirement ? Activities Allowed/Unallowed and Allowable Costs and Cost Principles (45 CFR 75.403) and Reporting (45 CFR 75.342) Condition ? The Medical Center is required to prepare and submit Period 2 Provider Relief Fund reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Reported use of the funds should be supported by underlying accounting records. Questioned costs ? $2,018 ? Calculated as the error value of the incremental costs included on the Period 2 report for which the incorrect underlying contract labor rate was utilized in the calculation. Context ? The Period 2 Provider Relief Fund report was tested. The Medical Center utilized incremental costs of contract labor as a component of their reported expenditures. When testing the underlying calculations of incremental costs, errors in the calculations were identified whereby certain incorrect contract labor rates were utilized in the calculation, thus resulting in errors in the reported expenditures. Effect ? Reported expenses are calculated incorrectly. Expenses may not be allowable. Cause ? The Medical Center did not correctly calculate incremental costs. Identification as a repeat finding, if applicable ? Not a repeat finding. Recommendation ? Policies and procedures over federal grant reporting should be modified to ensure incremental costs are prepared using accurate information. Views of responsible officials and planned corrective actions ? See attached corrective action plan for the Medical Center?s response to finding.