Finding Text
COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ALN 93.498 U.S. Department of Health and Human Services Period 1 Distribution Criteria or specific requirement ? Activities Allowed or Unallowed ? Law (Pub. L. No 116-136, 134 Stat. 563 and Pub. L. No 116-139, 134 Stat. 622 and 623); Allowable Costs/Cost Principles ? Charges to PRF must be necessary, reasonable, accorded consistent treatment, and conform to the limitations and exclusions of the terms and conditions of the award; and Reporting ? Provider Relief Fund Portal Condition ? The System?s records reflected an invoice in the total other PRF expenses of $1,040, but the supporting invoice and payment support was for $225. Questioned costs - $815 Context ? Out of a population of 3,780 other PRF expenses reported in the PRF Reporting Portal, a sample of 40 was selected for testing. Our sample was not, and was not intended to be, statistically valid. Support for one expense was less than what was reflected in the System?s records. Effect ? Other PRF expenses were overstated. Cause ? A purchase order was improperly marked in the system as fully received, resulting in the full amount being accrued when only part of the invoice had been received. Identification as a repeat finding, if applicable ? N/A Recommendation ? We recommend the System?s controls be updated to ensure there is full support for all amounts charged to grants. Views of responsible officials and planned corrective actions ? Management agrees with this finding and will review procedures regarding receipt accruals for purchase orders to ensure only amounts received are receipted into the system.