Finding Text
FINDING 2022-006 Federal program Federal Assistance Listing Number 93.498 U.S. Department of Health and Human Services COVID-19 Provider Relief Fund COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria The terms and conditions of the CARES Act PRF program require responses and or other informational data to be reported during the completion of the HRSA PRF reporting portal. Condition During the process of completing the HRSA PRF reporting form, various reporting errors were made. Cause Management was unaware of certain data required to be reported and misinterpreted other sections during the completion of the PRF reporting portal.Effect Management reported incorrect information in certain sections of the PRF reporting portal. Questioned costs None. Perspective/Context Management made the following reporting errors when reporting information in the PRF reporting portal: ? Management did not mark fiscal year 2022 as subject to Single Audit and that PRF payments would be included in the audit. ? The Hospital received two grants from the State of Kansas to be used towards COVID-19 expenses that were not reported in the Other Assistance section of the PRF reporting portal. A $103,000 grant should have been reported in quarter 2, 2022 and a $257,366 grant should have been reported in quarter 4, 2022. ? Total revenue/net charges from patient care were not reported for quarters 1 and 2 of fiscal year 2021. ? Management used an excel workbook to record and track various cost items that appear to be allowable under the program terms and conditions but did not report any amounts in the unreimbursed expenses section of the HRSA PRF reporting form. Recommendation We recommend management review its current internal controls over federal award compliance and revise its processes to ensure that all required information in reported correctly. Views of responsible officials and planned corrective actions Management agrees with the noted finding. We will review our current reporting processes and internal controls over PRF reporting to ensure all future reporting requirements are met.