Finding Text
2022-002 Reporting Federal Agency: Department of Health and Human Services Federal Program Name: COVID-19 Provider Relief Fund Assistance Listing Number: 93.498 Federal Award Identification Number and Year: P3-16420745516 - 2022 Award Period: January 1, 2020 ? June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matter - Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with the federal statutes, regulations, and conditions of the federal award. The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security (CARES) 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 health care related expenses or lost revenues that are attributable to coronavirus. Condition: During our testing, we noted that the Organization used budgets included in the lost revenue calculation that were not approved prior to March 27, 2020. While the budget covering the period of availability from January 1, 2020 to June 30, 2020 was approved on May 20, 2019, the budgets covering the period of availability from July 1, 2020 to June 30, 2021 and July 1, 2021 to June 30, 2022 were approved on June 29, 2020 and May 24, 2021, respectively. Questioned Costs: None Context: During our testing, we noted that there were certain budgets included in the lost revenue calculation that were not approved prior to March 27, 2020, as required. Cause: Insufficient internal controls of reporting. Effect: The lack of timely approved budgets. Repeat Finding: N/A. Recommendation: We recommend that management implement procedures to ensure budget approvals are received timely. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.