Finding 596951 (2022-002)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2023-07-13
Audit: 19062
Organization: Carolinaeast Health System (NC)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The Hospital submitted expenses for PTO/Sick Leave without proper documentation linking them to COVID-19, leading to potential misstatements.
  • Impacted Requirements: Compliance with the PRF terms and conditions, which specify allowable expenses related to COVID-19.
  • Recommended Follow-Up: Implement stronger controls and oversight to ensure all submitted expenses meet the established criteria.

Finding Text

93.498 COVID-19 Provider Relief Fund (PRF) Compliance Other Matter and Significant Deficiency Criteria: The Department of Health and Human Services provided terms and conditions associated with the Provider Relief Fund (PRF). Those terms and conditions outlined the usages of the PRF distributions received, specifically related to expenses and lost revenues. PRF distributions should only be used for expenses to prevent, prepare for, and respond to the coronavirus that have not been reimbursed from other sources or that other sources are not obligated to reimburse and calculate lost revenues as outlined in the terms and conditions. Management should have effectively designed controls in place to prevent or detect and correct noncompliance. Condition: The Hospital submitted expenses related to PTO/Sick Leave. Management could not provide underlying documentation to support if paid time off submitted to the portal was related to COVID-19 diagnosis. Effect: The Hospital submitted expenses that could be misstated due to lack of effective controls. Questioned Costs: $98,715 Cause: Lack of effectively designed and implemented controls, including oversight and detail review of the portal submission through the Department of Health and Human Services PRF portal for the first period of availability. Recommendation: Effective controls over compliance should be implemented to ensure expenses submitted through the Department of Health and Human Services PRF portal meet the criteria established in the terms and conditions. Management Response: See management?s corrective action plan.

Categories

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20508 2022-001
    Significant Deficiency Repeat
  • 20509 2022-002
    Significant Deficiency Repeat
  • 596950 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $4.50M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $995,975