FAC Explorer

Finding 59053 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-14
Audit: 49790
Organization: Community Clinic of Maui, Inc. (HI)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: The Center's reporting on the PRF Portal had inconsistencies with its accounting records.
  • Impacted Requirements: Compliance with reporting guidelines from HRSA for the PRF and ARP programs was not met.
  • Recommended Follow-Up: Improve internal controls to ensure accurate and consistent reporting in line with regulatory requirements.

Finding Text

Finding 2022-001: Reporting Grantor: U.S. Department of Health and Human Services Federal Program Name: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Numbers: 93.498 Criteria The Coronavirus Aid, Relief, and Economic Security (CARES) Act and American Rescue Plan (ARP) Act of 2021 appropriated funds to reimburse eligible healthcare providers for health carerelated expenses or lost revenues attributable to COVID-19. These funds were distributed by Health Resources and Services Administration (HRSA). HRSA developed the Provider Relief Fund (PRF) Reporting Portal to enable PRF and ARP Rural recipients to comply with mandatory reporting requirements. Condition The Center's submission to the PRF Portal included inconsistencies with the accounting records. Context There were inconsistencies with the COVID-19 related reporting on the PRF Portal which led to the PRF portal not matching the respective accounting records. It is noted that the Center had an adequate amount of lost revenue to earn the PRF funding received. Questioned Costs None. Cause The Center misinterpreted the guidance provided by Health Resources and Services Administration (HRSA) Provider Relief Fund (PRF) and American Rescue Plan (ARP) program. Effect The Center did not complete the PRF Reporting Portal properly in accordance with guidance provided by Health Resources and Services Administration (HRSA) Provider Relief Fund (PRF) and American Rescue Plan (ARP) program and as a result the data on the report was not correct. Recommendation The Center should strengthen their system of internal controls to ensure that all reporting is consistent with requirements and instructions as provided by regulatory agencies. Views of Responsible Officials Management agrees with the audit finding and will strengthen internal controls and accountability to correct the deficiency.

Corrective Action Plan

CORRECTIVE ACTION PLAN 2/10/2023 United States Department of Health and Human Services Community Clinic of Maui, Inc. (Malama I Ke Ola Health Center) respectfully submits the following corrective action plan for the year ended June 30, 2022. CohnReznick LLP 350 Church Street Hartford, CT 06103 Audit Period: June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS SIGNIFICANT DEFICIENCY 2022-001 ? Reporting Recommendation The Center will strengthen their internal controls to ensure that all reporting is consistent with requirements and instructions as provided by regulatory agencies. Action Taken The guidance for the Provider Relief Fund Reporting Portal provided by the regulatory agency was not interpreted correctly. This error in the reporting of costs will not be repeated in reporting period 4. If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please call: Monique van der Aa, CFO at (808)872-4017. Sincerely yours, Monique van der Aa Chief Financial Officer

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 635495 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $1.51M
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.08M
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $701,732
93.217 Family Planning_services $97,742
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $27,000
93.011 National Organizations of State and Local Officials $18,503
93.185 Immunization Research, Demonstration, Public Information and Education_training and Clinical Skills Improvement Projects $5,613
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nations Health $591
93.865 Child Health and Human Development Extramural Research $351