Finding 49589 (2022-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The Authority's report contained errors due to ineffective internal controls, leading to an overstatement of revenue by $300,000.
  • Impacted Requirements: Compliance with 2 CFR 200.303(a) regarding maintaining effective internal controls over federal awards.
  • Recommended Follow-Up: Revise internal control policies to ensure reported amounts match supporting documentation.

Finding Text

Department of Health and Human Services Federal Assistance Listing #93.498 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 1 TIN #736060835 Reporting Significant Deficiency in Internal Control Over Compliance and Noncompliance Not Considered Material 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 federal statutes, regulations, and conditions of the federal award. Condition: The Authority?s Period 2 HRSA report contained an error in two key line items. Cause: The Authority?s internal controls in place to review the report before submission did not identify the error in the report. Effect: The Medicare C revenue and total revenue for the first quarter of 2021 was overstated by $300,000 on the HRSA Period 2 report. The result did not affect the lost revenues calculated. Questioned Costs: None. Context: All key line items on the HRSA Period 2 report were tested. No sampling was used. Repeat Finding from Prior Years: Yes Recommendation: We recommend the Authority modify internal control policies to ensure amounts reported agree to the supporting documentation. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Consideration of Amounts Reported as Lost Revenue Finding 2021-001 Federal Agency Name: Department of Health and Human Services Program Name: Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year - Period 1 TIN #736060835 Federal Financial Assistance Listing # 93.489 Finding Summary: The Medicare C revenue and total revenue for the first quarter of 2021 was overstated by $300,000 on the HRSA Period 2 report. The result did not affect the lost revenues calculated. Responsible Individuals: Richard Wagner, Chief Financial Officer Corrective Action Plan: The Authority has enhanced the internal controls to ensure underlying supporting records agree to the final reports submitted to HHS, including a review and approval by someone different than the individual inputting the report data. Anticipated Completion Date: April 2023

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 626031 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $5.00M
93.461 Hrsa Covid-19 Claims Reimbursement for the Uninsured Program and the Coverage Assistance Fund $707,960