Finding Text
Assistance Listing, Federal Agency, and Program Name 93.498, U.S. Department of Health and Human Services (HHS), COVID-19: Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution
Federal Award Identification Number and Year N/A
Pass through Entity N/A Direct funded
Finding Type Material weakness and material noncompliance with laws and regulations
Repeat Finding No
Criteria Per the Provider Relief Fund General and Targeted Distribution Post-Payment Notice of Reporting Requirements dated April 7, 2023, recipients must meet compliance with reporting requirements, as outlined in the terms and conditions of the funding received. The terms and conditions require that the funding recipient report accurate expense totals to support the funding received.
Condition The Organization’s controls in place for reporting submissions did not identify that the General and Targeted Distribution Post-Payment Notice of Reporting Requirements guidelines were not followed related to expense amounts reported in the Organization’s period 2 portal submissions.
Questioned Costs $15,062
Identification of How Questioned Costs Were Computed Amounts were obtained by taking the difference between the actual expense totals per vendor invoices as compared to amounts included in client's calculation of allowable costs.
Context The single audit for the Organization included expenses reported during the first quarter of calendar year 2020 through the fourth quarter of calendar year 2021 related to funding received in Period 2. As a result of the funding received, the Organization was required to attest to the applicable expenses incurred, which are defined by HHS. Upon review, it was identified that a clerical error was made in the calculation of certain expenses reported by the Organization. Due to this, the Organization reported expenses in excess of the expenses incurred in the Organization’s Period 2 portal submission.
Cause and Effect Appropriate review of the expenses reported was not completed to ensure the expenses reported were accurate. As a result, the Organization reported incorrect expense totals for the period 2 portal submission.
Recommendation We recommended that the Organization implement controls, including levels of review, to ensure that reported expenses comply with the guidelines established by HHS.
Views of Responsible Officials and Planned Corrective Actions The Organization will review its processes surrounding the quantification of expenses reported and will implement additional levels of review to ensure that the expense amounts are validated for future reporting periods.