Finding Text
Provider Relief Fund and American Rescue Plan Rural Distribution
Assistance Living No. 93.498
U.S. Department of Heath and Human Services
Criteria or Specific Requirement – Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Cost Principles (Pub. L. No. 116- 136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). The Hospital is required to prepare and submit period three and four provider relief fund reports to the U.S. Department of Health and Human Services (HHS). These reports are to be prepared using accurate financial information and submitted by the deadline established. The funds cannot be used for expenses reimbursed or obligated to be reimbursed by other sources.
Condition – The Hospital reported COVID-19-related expenditures within the HHS Provider Relief Fund (PRF) portal that were reimbursed through other funding sources and reported expenditures that did not have supporting documentation that expenditures were related to the prevention, preperation or response to COVID-19. The Hospital incorrectly reported lost revenues for two of the six quarters reported within the HHS PRF portal.
Questioned Costs – $433,982
Context – The Hospital reported $298,205 of COVID-19-related expenditures within the HHS PRF portal that were reimbursed through other funding sources. In addition, management did not retain supporting documentation for $135,776 of expenditures to document their relation to the prevention, preparation or response to COVID-19. Furthermore, the Hospital incorrectly reported lost revenues for two of the six quarters resulting in an overstatement of $2,717.
Effect – The Hospital reported expenses that did not have support necessary to demonstrate the expenses were reasonably related to the prevention, preparation or response to COVID-19. Additionally, costs that were reimbursed by another source or were not allowed were included in the
HHS PRF portal.
Cause – Internal controls and grant-related expense review processes were not in place to ensure support was retained for expenditures report and that expendiutres were not obligated to be reimbursed by other sources.
Identification as a Repeat Finding – 2022-003
Recommendation – Policies and procedures over federal grant reporting and grant management should be modified to ensure expenditures are allowable and are not used for multiple sources and reports should be prepared with supporting documentation retained.
View of Responsible Officials and Planned Corrective Actions – Management agrees with the finding that expenses should be reimbursed by only one source. Management believes that while certain expenses were reported that were reimbursed by other funding sources they have additional allowable expenditures that could have been reported. Going forward, for subsequent reporting periods related to the Provider Relief Fund and American Rescue Plan Rural Distribution management will allocate expenditures as required, and will ensure expenses are reimbursed in accordance with current guidance.