Finding Text
Finding: Allowable Costs/Cost Principles and Reporting U.S. Department of Health and Human Services Direct Program: COVID-19 Provider Relief Fund and the American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing No. 93.498, Period 3 Funding Criteria or Specific Requirement ? Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and 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 (COVID-19). Entities that received 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, management is responsible for establishing and maintaining effective internal controls over costs directly and indirectly charged to federal awards. Condition ? The Organization claimed and reported duplicative direct COVID-19 expenditures or amounts that were not able to be supported. Questioned costs ? $860,210 of COVID-19 expenses that were charged and reported were duplicative and/or unsupported. Context ? The Organization incorrectly re-reported and claimed $778,860 of Period 1 expenses in the Period 3 submission, which resulted in overstating expenses claimed against PRF funds of $778,860. In addition, the Organization incorrectly double counted $81,350 in Contract Labor in the Period 3 submission. Effect ? The Other Provider Relief Fund Expenses for Payments Received included unallowable expenses on the portal submission. Cause ? Unallowable costs were included on the portal submission due to the Organization?s lack of appropriate management review. Identification as a Repeat Finding ? Not applicable. Recommendation ? The Organization should continue to improve understanding of the guidance related to this type of reporting and implement additional controls over future reporting periods to help ensure guidance is followed. View of Responsible Official and Planned Corrective Actions ? The Organization agrees with this finding. See separate auditee document for planned corrective action.