Finding Text
Finding 2022-004 Program Name: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Type of Finding: Internal Control, Significant Deficiency Compliance Requirement: Allowable Costs Questioned Cost: $0 Condition: In Provider Relief Fund reporting period 2, Moore Center Services, Inc., reported expenditures for personnel payroll related costs for COVID-19 Crisis Management positions. The payroll submitted in the portal for expenditure, did not agree to the payroll records for the two employees in this position and managements allocation of their time devoted to COVID-19 related issues. Management had a calculation error for the eligible payroll of these two employees that was not identified during management?s review of the expenditures allocated to the Provider Relief Funds. Based on the payroll records and the correct allocation of payroll to COVID-19 expense, expenditures reported in period 2 were over reported by $13,003. However, the Agency has additional COVID-19 expenditures that can be allocated to the period 2 reporting. Criteria: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security 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. Cause: The Provider Relief Fund Post-Payment Notice of Reporting Requirements states that workforce-related costs paid to prevent, prepare for, or respond to coronavirus are eligible expenditures. However, the amount claimed in reporting period 2, was not in agreement with payroll records and managements allocation of payroll to COVID-19. Effect: Expenditures for personnel costs were claimed in reporting period 2, that were not in agreement with documentation of COVID related costs, resulting in a reportable finding. Recommendation: Management should implement procedures to ensure grant funds are expended as needed for allowable costs during the applicable periods of availability and calculations of costs are reviewed by an appropriate level of management. View of Responsible Officials: Management will review personnel expenditures attributable to COVID and ensure that the correct expenditures are applied to the grant funding.