Finding 597417 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-09-28
Audit: 22796
Organization: Olmsted Medical Center (MN)

AI Summary

  • Core Issue: There was a significant deficiency in internal controls, leading to unsupported expenses submitted for reimbursement from the Provider Relief Fund.
  • Impacted Requirements: Funds from the PRF and ARP must only cover expenses with proper documentation; unsupported costs could lead to improper reimbursements.
  • Recommended Follow-Up: Management should review PRF and ARP guidelines to ensure all reimbursement requests are backed by paid invoices.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Fund and American Rescue Plan AL Number: 93.498 Award Period: January 1, 2022 ? June 30, 2022 (Period 3) and July 1, 2022 ? December 31, 2022 (Period 4) Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: PRF and ARP funds cannot be used to cover expenditures for which support of the expense cannot be provided. Condition and Context: During our testing, we noted an amount that was included on the report as an expense, but the expense was subsequently reversed. Cause: Management oversight in submitting costs for reimbursement without adequate support and payment. Effect: Potential to receive improper reimbursement from the Provider Relief Fund. Questioned Costs: $77 Repeat Finding: No Recommendation: We recommend that management review the PRF and ARP guidelines to make sure amounts requested for reimbursement are supported by paid invoices. Management?s Response: Management will review reporting requirements to ensure proper reporting in future periods. However, it is noted there was sufficient unreimbursed expenses to support the PRF and ARP distributions received.

Categories

Questioned Costs Internal Control / Segregation of Duties Cash Management Reporting Significant Deficiency

Other Findings in this Audit

  • 20975 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $5.83M