Finding Text
2022-001 Finding: Reporting and Activities Allowed or Unallowed, Allowable Costs/Cost Principles CFDA No. 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342) and Activities Allowed or 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). The Provider Relief Fund (PRF) was established in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) to reimburse, through grants or other mechanisms, eligible health care providers for increased expenses or lost revenue attributable to Coronavirus Disease 2019 (COVID-19). Entities that receive more than $10,000 (either one time or in the aggregate) are required to report the uses of their funds, including the lost revenue reimbursement and documentation of how the lost revenue was calculated. In addition, the Organization is required to implement and maintain internal controls over financial reporting. Condition: During our review of the Period 3 report submitted, we noted the actual revenues and budgeted revenues included in the lost revenue calculation did not agree to the underlying accounting records Context: The lost revenue calculation included actual revenue amounts that did not agree to the underlying accounting records. Effect: The lost revenue values submitted did not agree to underlying accounting records. Cause: The Organization did not have adequate internal controls in place to identify revenues reported did not agree to the underlying accounting records. Recommendation: The Organization should continue to improve their understanding of the guidance related to this type of reporting and implement additional controls over future reporting periods to help ensure guidance is followed. Views of responsible officials: The Organization agrees with the finding. See separate report for planned corrective actions.