Finding 48233 (2022-001)

2022-001 Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 2 TIN#460319070, and TIN#460360899 Federal Financial Assistance Listing #93.461 COVID-19 HRSA Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Preparation of the Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (the schedule) and the accompanying notes to the schedule. Condition: Management prepared the schedule for the year ended June 30, 2022. During testing, the auditors decreased the amount reported for the COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program (PRF) to the amounts reported within the Department of Health and Human Services (HHS) for Period 2 and Period 3 Special Report. In addition, adjustments were made to decrease the amount reported for the COVID-19 HRSA Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund (Uninsured Program) to total receipt of monies received from the federal agency during the year ended June 30, 2022. Cause: The amount reported for PRF included the amount of funds received during Period 4. In addition, the Uninsured program improperly included monies from the federal agency with deposit dates during June 2021 and improperly excluded monies from the federal agency with deposit dates during June 2022. Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when Monument Health meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that Monument Health would not be able to draft a complete and accurate schedule without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend that management review the unique requirements of the PRF program relating to when the expenditures are required to reported on the schedule. In addition, we recommend reviewing grant expenditures near year end to ensure proper cut-off relating to claims paid under the Uninsured Program. Views of Responsible Officials: Management agrees with the finding.