Finding Text
2022-005Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 1 TIN #476028103 Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Reporting Significant Deficiency in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Health System?s Period 1 expenditures and report to HHS included an expense that was reduced for a reimbursement rate in duplicate. Cause: Due to a clerical oversight, the Health System calculated the reimbursement rate from the total expenses, but also calculated the reimbursement on an individual expense in duplicate. Effect: There is a possibility that ineligible expenditures may be claimed under the program and the report may not be accurately completed. Questioned Costs: None reported as the amount claimed was understated. Eligible expenses on the period 1 report were understated by an amount less than $25,000. Context: A nonstatistical sample of 60 expenditures were selected for testing, which accounted for $84,077 of $3,048,891 direct program expenditures. One expenditure from the sample of 60 contained an error. All expenditures? reduction for reimbursement was recomputed from the population to arrive at the known error. Key line items on the Period 1 report were tested. Repeat Finding from Prior Years: No Recommendation: We recommend the Health System implement procedures to ensure the reduction for reimbursement of expenditures are calculated and reported correctly. Views of Responsible Individuals: Management agrees with the finding.