Finding 612992 (2022-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
$1
Year
2022
Accepted
2023-04-05
Audit: 27023
Organization: Comprehend INC (KY)

AI Summary

  • Core Issue: Comprehend failed to submit required reports for the Provider Relief Fund, risking repayment of $645,311.
  • Impacted Requirements: Grant terms mandate reporting for funds over $10,000 within specified deadlines; non-compliance leads to enforcement actions.
  • Recommended Follow-Up: Management should review all grant reporting deadlines and ensure coordination with program directors to prevent future issues.

Finding Text

Finding 2022-002 Reporting Deadlines (Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing #93.498) Condition: The required Health Resources and Service Administration?s (?HRSA?) Provider Relief Fund (?PRF?) Portal reporting was not submitted. Criteria: Grant requirements stipulate that a completed report on the use of funds for amounts received exceeding $10,000, for the prescribed time periods, were required to be submitted to the HRSA Provider Relief Fund Portal. For Period 2 distributions, July 1, 2020 to December 31, 2020, the required HRSA reporting was required to be submitted between January 1, 2022 to March 31, 2022. Statement of Cause: There was significant turnover in the finance and accounting department during the 2021 fiscal year when this grant was received, and the terms of the grant accepted. The current CFO did not receive any communication or notice from the HRSA regarding the reporting deadline, therefore reporting was not completed. Effect: Comprehend will have to return all funds received under this grant between July 1, 2020 to December 31, 2020. Questioned Costs: As Comprehend will have to return all funds received from July 1, 2020 to December 31, 2020, the total costs allocated to the program of $645,311 are considered questioned costs. Perspective Information: We requested the reporting for the period January 1, 2022 through March 31, 2022, and Comprehend confirmed they had not submitted the required information. As defined in the grant requirements, providers who do not submit a completed report on the use of funds by the applicable reporting deadline are considered non-compliant with the grant?s terms and conditions. All non-compliant providers subject to enforcement actions will receive an official notice indicating that HRSA is seeking repayment of all PRF payments for the applicable Reporting Period. Providers will have 30 business days after receiving their Final Notice of Reporting Non-Compliance to return the payments. Indication of Repeat Finding: This is a repeat finding of 2021-004, except for a different major program. Recommendation: We recommend that Comprehend management review all grant funding for reporting deadlines, and coordinate this responsibility with the respective program directors. Views of Responsible Officials: Management agrees with the finding and has put in place processes to ensure that all required data reporting related to grants is done within Federal and state required deadlines.

Categories

Questioned Costs Reporting

Other Findings in this Audit

  • 36549 2022-001
    Significant Deficiency Repeat
  • 36550 2022-002
    Material Weakness Repeat
  • 36551 2022-003
    Significant Deficiency
  • 612991 2022-001
    Significant Deficiency Repeat
  • 612993 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $645,311
93.959 Block Grants for Prevention and Treatment of Substance Abuse $558,596
93.958 Block Grants for Community Mental Health Services $406,551
94.011 Foster Grandparent Program $219,589
93.658 Foster Care_title IV-E $155,847
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $56,463
93.788 Opioid Str $35,676