Finding Text
Criteria In accordance with Health Resources and Services Administration Provider Relief Fund and American Rescue Plan, as required by The Post-Payment Notice of Reporting Requirements states that PRF payments can be used by any provider of health care, services, and support in a medical setting, at home, or in the community towards health care-related expenses attributable to coronavirus that another source has not reimbursed and is not obligated to reimburse, which may include General and Administrative or health care-related operating expenses. Questioned Costs Subsequent to the end of the contract period and reporting deadlines, Unemployment Insurance costs claimed as a contract expense were refunded by New York State. These refunds in the amount of $324,825.67 resulted in the claimed expense becoming unallowable. Context The Organization had complied with the reporting requirements of the contract as the expense was allowable at the time of reporting. Due to subsequent events in which a refund was provided, the cost became unallowable. Cause Due to a New York State Unemployment Insurance Benefits and Department of Labor review of unemployment insurance charges, the Organization was refunded $324,825.67 because of a reduction in those charges. That reduction resulted in contract overpayments related to subsequently to unallowable expenses. Effect Previously allowed expenses became unallowable and the Organization may be required to return those funds in the amount of $324,825.67 to Health Resources and Services Administration (“HRSA”). Unless HRSA agrees to replace the unallowable expenses with unreimbursed lost revenues in the reporting period. Recommendation We recommend that the Organization communicate with “HRSA” regarding the subsequent refund of Unemployment expense and its intent to replace these now unallowable expenses with unreimbursed lost revenues. This may be reported in the Organizations corrective action plan where “the provider would indicate that the unallowable expensed was “replaced” by unreimbursed lost revenues. Reportinv Views of Responsible Officials See Corrective Action Plan.