Finding 615869 (2022-002)

2022-002 Department of Health and Human Services CFDA #93.461 COVID-19 Uninsured COVID Testing and Treatment Activities Allowed and Allowable Costs Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: 2 CFR 200.303 (a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Our testing over activities allowed and allowable costs identified three instances in which patient treatment charges were charged under federal award and COVID-19 was not the primary diagnosis. Cause: There was a lapse in oversight of the internal control process ensuring patient treatment costs without a COVID-19 primary diagnosis were not charged to the federal award. Effect: The Organization?s controls did not detect or correct the errors identified, which resulted in disallowed costs being submitted under the federal award. Questioned Costs: $264 Context: A non-statistical sample of 60 transactions was selected for testing, which accounted for $29,916 of $4,184,833 of federal program expenditures. Repeat Finding from Prior Year: Yes Recommendation: We recommend the Organization review and strengthen the controls surrounding the patient eligibility and billing. Views of Responsible Officials: Management agrees with the finding.