Finding 43247 (2022-002)

COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Compliance Requirement: Activities Allowed or Unallowed Criteria: ? Law (Pub. L. No 116-136, 134 Stat. 563 and Pub. L. No 116-139, 134 Stat. 622 and 623); Allowable Costs/Cost Principles/Reporting ? Charges to PRF must be necessary, reasonable, accorded consistent treatment, and conform to the limitations and exclusions of the terms and conditions of the award; and Reporting ? Provider Relief Fund Portal Condition: The Organization is required to prepare and submit the period two 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. The Organization incorrectly counted salaries of certain employees twice on the period two report provider relief fund report. Context: The period two provider relief fund report was tested. During the testing procedures, it was discovered that the salaries of certain employees were included twice in the report. However, it was noted that the Organization had sufficient expenditures that covered the portion expenditures that were unallowed. Questioned Costs: $29,135 Effect: Errors were made in reporting expenditures in the period two provider relief fund report to the U.S. Department of Health and Human Services. Cause: The Organization?s internal controls around compliance were not effective in discovering errors in the expenditures reported. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review all expenditures for accuracy and allowability under the criterial provided by the Department of Health and Human Services.