Finding Text
Finding 2022-001 Significant deficiency in internal controls over compliance and instances of noncompliance related to activities allowed and unallowed principles compliance requirement. Federal Agency: United States Department of Health and Human Services Program Title: HRSA COVID-19 Uninsured Program Federal Assistance Number: 93.461 Award Number: Not applicable Award Period: February 4, 2020 through April 5, 2022 Criteria Per the standards contained in Title 2 US Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart D - Post Federal Award Requirements, Section 200.303, non-Federal entities are required to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The terms and conditions of the Federal award referenced require that if the recipient charged any uninsured individuals a fee relating to COVID-19 testing and/or testing related items, vaccine administration, care, or treatment for which the recipient subsequently received a payment from the uninsured program fund, the recipient was to communicate to the uninsured individuals that they do not owe for any portion of the services. If the uninsured individual paid the recipient for any portion of the services, the recipient was to return the payment in a timely manner. Condition/Context for Evaluation During testing for the year ended March 31, 2022, we noted that for four of the forty transactions selected, the Organization had collected payments from individuals in the amount of $274.75 and had not refunded the amounts in a timely manner. This was not a statistical sample. Effect or Potential Effect The Organization did not fully comply with the requirements specified in the terms and conditions of the Federal Award. Questioned Costs Not Applicable Cause The Organization?s internal controls did not ensure that if the uninsured individual paid for any portion of the services, that those payment were returned in a timely manner. Repeat Finding Not a repeat finding. Recommendation We recommend the Organization implement the necessary internal controls to ensure the terms and conditions of the Federal award are adhered to and that any refunds due to patients are processed timely. Views of Responsible Officials of Auditee Management agrees with the finding and has provided the accompanying corrective action plan.