Finding Text
2022-002 ? Significant deficiency related to Provider Relief Fund (PRF) reporting to the U.S. Department of Health and Human Services (HHS) for CFDA #93.498. Condition ? Management did not accurately and appropriately report to HHS direct expenditures to prepare, prevent, or respond to the COVID-19 pandemic and/or lost revenues based on terms established by HHS and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Criteria ? To substantiate PRF receipts, management is required to report to HHS direct expenditures to prepare, prevent or respond to the COVID-19 pandemic and/or lost revenues based on terms established by HHS and in accordance with requirements of Uniform Guidance. Questioned costs - $-0- Cause ? This instance of noncompliance was the result of management?s interpretation of direct expenditures to prepare, prevent, or respond to the COVID-19 pandemic and/or lost revenues based on terms established by HHS and Uniform Guidance. Choices reported expenditures not directly associated with preparation, prevention, or response to the COVID-19 pandemic and did not report lost revenues incurred. Effect ? An instance of noncompliance as management did not accurately and appropriately report to HHS direct expenditures to prepare, prevent, or respond to the COVID-19 pandemic and/or lost revenues based on terms established by HHS and Uniform Guidance. Context ? HHS and Uniform Guidance requirements direct the grant recipient to comply with reporting requirements. Recommendation ? We recommend management prepare and retain alternative support for actual direct expenditures incurred to prepare, prevent, or respond to the COVID-19 pandemic as well as lost revenues incurred based on terms established by HHS and Uniform Guidance. This alternative support may need to be provided to HHS or contracted representative if a subsequent compliance review were to be required. Views of Responsible Officials and Planned Corrective Actions - Management concurs with audit finding 2022-002. Choices is preparing alternative support for actual direct expenditures incurred to prepare, prevent, or respond to the COVID-19 pandemic as well as lost revenues incurred based on terms established by HHS and Uniform Guidance. From alternative support prepared, Choices believes they can support the award with lost revenues that will be reported during the period four submission, and they do not anticipate that any PRF awarded will be required to be returned