Finding Text
Condition
The Organization received Provider Relief Funds (PRF) of $3,225,365 within the period of January 1, 2022 to June 30, 2022. However, $402,814 of these funds received by Arnot Medical Services (AMS) were not included in the original Schedule of Expenditures of Federal Awards (SEFA) produced by the Organization, nor the Period 5 reporting that was required to be submitted to Health Resources and Services Administration (HRSA). The Tax Identification Number (TIN) of AMS was included in the Period 5 report, but the dollar amount received did not populate during report submission and was omitted.
Criteria
The Organization is required to submit Period 5 PRF reports to HRSA covering funds received during the period January 1, 2022 through July 31, 2022. The report requires the Organization to account for and certify that eligible expenses and lost revenues are used to determine proper usage and recognition of funds.
Cause
The payments that were excluded from the report submitted to HRSA and from the SEFA were general distribution payments that were received by a subsidiary of the Organization. The report submitted by the Organization identified that it was reporting on this subsidiary’s general distribution payments. However, management did not report on these funds or include these funds in the Organization’s SEFA.
Effect
The Organization did not comply with reporting regulations required by the Department of Health and Human Services as the Organization’s report submitted to HRSA is incomplete and the Organization’s 2023 SEFA was misstated.