Finding 600836 (2022-001)

Material Weakness
Requirement
ABL
Questioned Costs
-
Year
2022
Accepted
2023-06-28
Audit: 20105
Auditor: Forvis LLP

AI Summary

  • Core Issue: The District reported COVID-19 expenses to multiple funding sources, risking double reimbursement.
  • Impacted Requirements: Compliance with reporting standards (45 CFR 75.342) and allowable costs principles was not maintained.
  • Recommended Follow-up: Update policies to prevent using federal funds for expenses already reimbursed by other sources.

Finding Text

2022-001 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing Number 93.498 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). Condition: The District included certain COVID-19 related expenditures as requests for financial assistance from other agencies. Questioned costs: None Context: Certain expenses reported by the District in the period 2 PRF report were also provided to other agencies as a request for financial assistance. A portion of the request to the second source was approved and funded subsequent to September 30, 2022, thus a portion of the Period 2 PRF expenses could be reimbursed by both PRF and the second source. The total amount to be approved and granted by the secondary source has not yet been finalized. Cause: Internal controls of compliance were not in place to ensure the District did not allocate expenses to more than one funding source. Effect: Expenses were allocated to more than one funding source. Identification as a repeat finding: Not a repeat finding. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure distributions are not used to reimbursed expenses that have been reimbursed from other sources or that other sources are obligated to reimburse. Views of responsible officials and planned corrective actions: See attached corrective action plan for the District?s response to finding.

Categories

Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 24394 2022-001
    Material Weakness
  • 24395 2022-002
    Significant Deficiency Repeat
  • 600837 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Covid-19 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $5.09M
93.461 Covid-19 Hrsa Covid-19 Claims Reimbursement for the Uninsured Program and the Covid-19 Coverage Assistance Fund $2.63M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $270,419