Finding Text
2 CFR § 300.1 states the Department of Health and Human Services adopts the Office of Management and Budget (OMB) Guidance in 2 CFR part 200, and has codified the text, with HHS-specific amendments in 45 CFR part 75. Thus, this part gives regulatory effect to the OMB guidance and supplements the guidance as needed for the Department.
2 CFR § 200.403 which states, in part, that except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (g) Be adequately documented.
The PRF and ARP Rural Distribution are administered by the Health Resources and Services Administration (HRSA) and support eligible health care providers in the battle against the COVID-19 pandemic. PRF provides relief funds to eligible providers of health care services and support for health care-related expenses or lost revenues attributable to coronavirus. ARP Rural Distribution addresses the disproportionate impact that COVID-19 has had on rural communities and rural health care providers. PRF and ARP Rural Distribution recipients must only use payments for eligible expenses. The recipient certifies that the payment will only be used to prevent, prepare for, and respond to coronavirus and COVID-19, and that the payment shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus and COVID-19. 2022 OBM Compliance Supplement, Part 4, 93.498. Reporting Entities are required to maintain adequate documentation to substantiate that the PRF funds were used for health care-related expenses or lost revenues that are attributable to coronavirus and COVID-19. See PRB Reporting and Auditing FAQ, Health Resources & Services Administration, https://www.hrsa.gov/provider-relief/faq/reporting?categories=210&keywords=.
For 2022, five out of the twenty-five employees (20%) tested did not have adequate documentation to support the hours worked and paid to the employees for COV+10 and/or COV+7 pay. Logan County Logan Acres Care Center Department was unable to locate all of the pickup bonus forms for five of the employees. These forms indicate the day, number of hours, and type of bonus the employee was approved for and received. Therefore, $998 of the $6,882 of employee wages tested did not have supporting documentation, resulting in a projected error of $39,233 and a questioned cost.
Failure to maintain and provide adequate detailed financial records to support payments made could result in unallowable federal grant expenditures, reimbursements to the grantor, and/or additional questioned costs issued in future audits.
Logan County Logan Acres Care Center Department should implement policies and procedures to identify, gather, and verify that adequate supporting documentation is received, reviewed, and maintained prior to issuing payments of grant funds.