Finding Text
Finding 2023-003: Significant Deficiency in Internal Control - Reporting
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 / 2023
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 $671,618 of total other PRF expenses incurred in the period 4 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).
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.