Finding 522496 (2022-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-02-10

AI Summary

  • Core Issue: The Center misclassified $659,718 in PRF expenses as eligible, which were not compliant with federal guidelines.
  • Impacted Requirements: The Center failed to meet the internal control and reporting requirements outlined in 2 CFR 200.303(a) and submitted reports past the deadline.
  • Recommended Follow-Up: Management should establish procedures to ensure compliance with the latest guidance and thoroughly review all report submissions for accuracy before deadlines.

Finding Text

Assistance Listing Number: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Not applicable Award Number / Year: N/A / 2022 Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Recipients of Provider Relief Funds (PRF) payments must also comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Condition/Context: The Center reported $659,718 of total other PRF expenses incurred in the period 2 submission which were categorized as Mortgage/Rent. However, the expenses incurred in this category were not determined to be eligible expenses under the terms and conditions of 2 CFR 200.303(a). The Center also submitted the period 2 report past the reporting deadline. Effect: The amounts reported to Health Resources & Services Administration (HRSA) did not have the necessary supporting documentation that was used to prepare and submit the initial reporting. Questioned Costs: None Cause: The Center misinterpreted the definitions of eligible expenses that should be included in the submission. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed and understood, and that information used in preparation of the reports are reviewed, with errors addressed and maintained prior to reporting. Management’s Response: Management agrees with the finding and has subsequently supported other eligible expenses that were not included in the original submission. These amounts exceeded the funding received.

Corrective Action Plan

Corrective Action: Management agrees with the finding and has subsequently supported other eligible expenses that were not included in the original submission. These amounts exceeded the funding received. Anticipated Completion Date: November 15, 2024 Contact Person: Marco Giordano, Vice President and Chief Financial Officer

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 522497 2022-005
    Significant Deficiency
  • 1098938 2022-004
    Significant Deficiency
  • 1098939 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $759,395
93.959 Block Grants for Prevention and Treatment of Substance Abuse $79,100