Finding Text
COVID-19 Provider Relief Fund and
American Rescue (ARP) Rural Distribution
ALN No. 93.498
U.S. Department of Health and Human Services
Criteria or Specific Requirement – Activities Allowed or Unallowed and Allowable
Costs/Cost Principles (Pub. L. No. 116- 136, 134 Stat. 563 and Pub. L. No. 116-
139, 134 Stat. 622 and 623) and Reporting (45 CFR 75.342)
Condition – The Organization was required to file a Period 2 and Period 3
Provider Relief Fund (PRF) reports during the year; however, did not
maintain adequate documentation to support the other PRF expenses were
attributable to coronavirus and/or had not been or were not eligible to be
reimbursed by other sources.
Questioned Costs – $261,607 calculated as the PRF amounts received by the
Organization and included in Period 2 and Period 3 reporting.
Context – The Organization was unable to provide adequate documentation
to support the other PRF expenses had not been or were not eligible to be
reimbursed by other sources.
Effect – The Organization utilized PRF payments received on expenses that
were not documented as attributable to coronavirus, were potentially
reimbursed by other sources, and/or were not allowable in accordance with
other guidance issued by HHS.
Cause – Provider Relief Fund and American Rescue Plan (ARP) Rural
Distribution is a new program with complex and evolving regulations and
compliance requirements. Internal controls were not in place to ensure the
Organization correctly applied the guidance.
Identification as a repeat finding – Not a repeat finding
Recommendation – Policies and procedures over allowable activities and
federal grant reporting should be modified to ensure expenditures charged to
grants are for activities allowed and federal grant reports are prepared using
complete and accurate information.