Finding 50135 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
$1
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: The Authority reported duplicate expenses in the HHS HRSA Period 4 submission, violating funding guidelines.
  • Impacted Requirements: Funds must only cover expenses directly related to coronavirus, and duplicate reporting is not allowed.
  • Recommended Follow-Up: Implement a robust review process to prevent duplicate submissions and ensure compliance with HHS guidelines.

Finding Text

Criteria: Provider Relied Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act and are to be used to prevent, prepare for and respond to coronavirus. The funds shall reimburse the recipient only for expenses or lost revenues that are attributable to coronavirus. The funds may not be used to reimburse from other sources or that other sources are obligated to reimburse. Condition: The Authority reported duplicate expenses within the HHS Health Resources and Services Administration (HRSA) Reporting Portal Period 4 submission. Cause: Although the Authority has a process in place to identify and report allowable expenses, an appropriate review process was not in place to detect and correct any duplicate expenditures. Effect: The Authority reported expenses within the HHS HRSA Reporting Portal Period 4 submission which were not allowed based on the terms and conditions of the award. Questioned Costs: $205,670 of duplicate expenses were improperly included in Period 4 reporting submission. Context: Upon testing the compliance requirements of this program, it was determined that certain expenditure items were reported twice and therefore, not in compliance with guidance provided by HHS. However, the Period 4 reporting submission included $440,399 of unreimbursed expenses attributable to coronavirus and $777,380 of unused lost revenues that the Authority believe could offset the issue identified above. Recommendation: We recommend the Authority design and implement controls, including levels of review, to ensure qualifying expenses submitted are in accordance with the HHS guidelines. Views of Responsible Officials and Planned Corrective Actions: See management?s corrective action plan.

Corrective Action Plan

Candler County Hospital Authority respectfully submits the following corrective action plan for the year ended December 31,2022. The findings from the December 31, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS - FEDERAL AWARD PROGRAMS AUDITS MATERIAL WEAKNESS 2022-001 COVID-19 Provider Relief Fund (PRF) ? Period 4 Recommendation: ? We recommend the Authority design and implement controls, including levels of review, to ensure qualifying expenses submitted are in accordance with the HHS guidelines. ? Action Taken: Management agrees with this finding as stated and the additional actions that will be taken by the Authority. Management will design controls to establish an adequate review process to ensure consistent and accurate calculations and reconciliations in accordance with HHS guidelines. Management will contact HRSA and use either unreimbursed expenses or lost revenues to offset the duplicate expense issue.

Categories

Questioned Costs Reporting

Other Findings in this Audit

  • 626577 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Covid-19 - Provider Relief Fund - Period 4 $1.13M
10.766 Community Facilities Loans and Grants $244,260
93.155 Covid-19 - Small Rural Hospital Improvement Grant - Testing and Mitigation Program $120,000
93.461 Covid-19 - Claims Reimbursement for the Uninsured Program $22,123
93.912 Covid-19 - Rhc Vaccine Confidence Program $20,697
93.241 State Rural Hospital Flexibility Program $5,000