Finding Text
Section III?Federal Award Findings and Questioned Costs Federal Agency: U.S. Department of Health and Human Services Program Name: COVID-19, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 94.498 Finding 2022-001: Overstatement of expenses Repeat Finding: No. "Criteria: 2 CFR Part 200.303(a) states that the auditee must establish and maintain effective internal control over the federal awards that provides reasonable assurance that the auditee is managing the federal award in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Specific criteria established by the Health Resources and Services Administrations (HRSA) reporting guidance, establishes that providers who accept PRF Payments agree to the Terms and Conditions of the Program, which included a requirement for providers to report on the use of funds. Providers who receive one or more payments totaling greater than $10,000 in the aggregate during a payment received period must report on use of funds in each applicable reporting period. " Condition: Amounts reported as General and Administrative expenses and Healthcare Related expenses that were reported in Period 2 in the Provider Relief Fund Reporting Portal (the "Portal") were also reported in Period 4 in the Portal. Cause: Subsequent to the Period 4 submission to the Portal, management identified that the amounts reported as General and Administrative expenses and Healthcare Related expenses for Q3 and Q4 2021 were inadvertently submitted to both Period 2 and Period 4 in the Portal. Effect: Expenses reported as General and Administrative expenses and Healthcare Related expenses in Period 4 in the Portal were overstated by approximately $42,000. Questioned costs: None. Context: Expenses reported as General and Administrative expenses and Healthcare Related expenses of approximately $42,000 out of total eligible expenses reported to the Portal for Period 4 of $3,916,670 were overstated as they had been previously reported in Period 2 to the Portal. Recommendation: We recommend management review and strengthen its internal control review process over reporting. Views of responsible officials: Management concurs with the finding presented above.