Finding 58429 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 55905
Organization: Lutheran Seniorlife (PA)

AI Summary

  • Core Issue: Internal controls over compliance for the COVID-19 Provider Relief Fund were ineffective, leading to inaccuracies in reported expenditures.
  • Impacted Requirements: Funds must only cover health care-related expenses or lost revenues directly tied to coronavirus, without overlap from other reimbursements.
  • Recommended Follow-Up: Ensure that only paid expenditures are reported for Provider Relief Funds in future submissions to maintain accuracy.

Finding Text

2022-002 Federal agency: U.S. Department of Health and Human Services Federal Program Title: COVID-19 Provider Relief Fund Assistance Listing Number: 93.498 Award Period: Year ended June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Controls over Compliance ? Other Matters Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. These funds may not be used to reimburse expenses of losses that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition: The Organization's internal controls over reporting were not effective. Questioned costs: $0 Context: During the audit, it was determined that one out of 13 expenditures selected for testing did not agree to the supporting payment. Cause: Purchase order information was used to accumulate COVID-19 related costs for reporting on during reporting period three. The amount paid for the items on the purchase order was less than the original purchase order.Effect: The listing of expenditures used to populate the report was overstated due to using purchase order information. There were sufficient other expenditures to utilize the infection control payment. Recommendation: We recommend expenditures only be allocated to Provider Relief Funds after they have been paid. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the error in the report and for future reporting periods will verify expenditures have been paid before reporting.

Corrective Action Plan

2022-002 Federal agency: U.S. Department of Health and Human Services Federal Program Title: COVID-19 Provider Relief Fund Assistance Listing #: 93.498 Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. These funds may not be used to reimburse expenses of losses that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition: The Organization's internal controls over reporting were not effective. Context: During the audit, it was determined that one out of 13 expenditures selected for testing did not agree to the supporting payment. Recommendation: We recommend expenditures only be allocated to Provider Relief Funds after they have been paid. Action taken in response to finding: Management acknowledges the error in the report and for future reporting periods will verify expenditures have been paid before reporting. Name of contact person responsible for corrective action: Jeffrey Carraway

Categories

Procurement, Suspension & Debarment Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 58426 2022-003
    Significant Deficiency
  • 58427 2022-004
    Significant Deficiency
  • 58428 2022-001
    Significant Deficiency Repeat
  • 634868 2022-003
    Significant Deficiency
  • 634869 2022-004
    Significant Deficiency
  • 634870 2022-001
    Significant Deficiency Repeat
  • 634871 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $9.29M
10.766 Community Facilities Loans and Grants $2.65M
93.498 Provider Relief Fund $1.20M