Finding Text
2022-001 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing No. 93.498 U.S. Department of Health and Human Services Period 3 and Period 4 Expenditures Criteria or Specific Requirement: Activities Allowed/Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) Condition: The Authority is required to prepare and submit period three and period four Provider Relief Fund (PRF) reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs: $358,571; the amount of expenses reported that did not have support. Context: The Authority?s submitted reports included the activity of the Authority and their Nursing Home Facilities (Nursing Homes). There are four separate nursing home management companies that provide services to the Authority?s seven Nursing Homes. One nursing home management company was unable to justify that the expenditures charged to the grant were related to specific uses allowed for the nursing home infection control payments received. Effect: The Authority does not have documentation to support certain expenditures related to nursing home infection control payments that were charged to the PRF grant in period three. These expenses may not be allowable. Cause: The Authority?s internal controls did not ensure detailed listings of expenses charged to PRF were maintained for all Nursing Homes. Identification as a Repeat Finding: Repeat finding 2021-001 Recommendation: Policies and procedures over expenditures charged to federal grants should be modified to ensure documentation is maintained. Responsible Official: Todd Scroggins, Chief Financial Officer (CFO) at the Authority. Planned Corrective Actions: See separate auditee document for detail of corrective action plan.