Finding Text
Federal Program: CFDA #93.498 US Department of Health and Human Services Provider Relief Fund and American Rescue Plan (ARP) Distribution Criteria: The terms and conditions of the CARES Act Provider Relief Fund (PRF) distributions state that funds are to only be used to prevent, prepare for and respond to coronavirus, and that the recipient will not use funds to reimburse expenses that have been reimbursed from other sources. Condition: During the process of testing the amounts reported in the PRF reporting portal, it was noted that expenses were not reduced by certain other funds received by the Company. Cause: Due to the amount of detailed information that was required to be compiled by management in order to enter data into the PRF reporting portal, management had a formula error in its netting of eligible expenses. Effect: Management included previously reimbursed expenses within the unreimbursed expense section of the PRF reporting portal. Questioned Costs: None. Recommendation: We recommend that management continue to monitor and enhance its internal controls over federal award compliance to ensure that reported expenses are reduced by amounts reimbursed from other sources. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding summarized above.