Finding 584716 (2022-001)

COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342) The District is required to prepare and submit period two and three provider relief fund reports to the U.S. Department of Health and Human Services. These reports are to be prepared using accurate financial information and submitted by the deadline established. Condition: The District lost revenue reported did not include revenues for the entire period of reporting for Period 2, resulting in material differences in quarterly revenue. Questioned costs: None. Context: The period two provider relief fund report was tested. The District selected option 3 to report lost revenues. A difference in the calculation of lost revenues was identified related to an error in the calculation for quarters 3 and 4 of 2021, as the report only reported lost revenues up to the amount needed to cover period 2 receipts and not the entire reporting period. Cause: Internal controls over compliance were not in place to ensure the District properly calculated and reported lost revenues under option 3 to ensure the calculation included data from the full reporting period. The District is required to prepare and submit period two provider relief fund reporting. These reports are to be prepared using accurate financial information and submitted by the deadline established. The District did not correctly report all quarter data for their lost revenue calculation. Effect: Errors were made in reporting lost revenue for quarters 3 and 4 of 2021. Lost revenue was not accurately reported. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Identification as a repeat finding: Not a repeat finding. Views of responsible officials and planned corrective actions: Management agrees with the finding of not properly calculating lost revenues under option 3 for reporting period 2. The District still has sufficient lost revenues to cover the amount of provider relief funding received and has updated the period 4 reporting to correct the errors noted above. The CFO, Paul Gafford, was responsible for the corrected data submitted with the period 4 reporting. The corrective action plan was implemented prior to September 30, 2023.