Finding 619689 (2022-002)

Significant Deficiency
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2023-04-04
Audit: 45113
Organization: Hacienda, Inc. (AZ)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The Organization mistakenly reported certain employee salaries twice in the Provider Relief Fund report.
  • Impacted Requirements: Compliance with federal reporting criteria, including accurate financial information and adherence to allowable costs.
  • Recommended Follow-Up: Management should thoroughly review all expenditures for accuracy and compliance with Department of Health and Human Services guidelines.

Finding Text

COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Compliance Requirement: Activities Allowed or Unallowed Criteria: ? Law (Pub. L. No 116-136, 134 Stat. 563 and Pub. L. No 116-139, 134 Stat. 622 and 623); Allowable Costs/Cost Principles/Reporting ? Charges to PRF must be necessary, reasonable, accorded consistent treatment, and conform to the limitations and exclusions of the terms and conditions of the award; and Reporting ? Provider Relief Fund Portal Condition: The Organization is required to prepare and submit the period two provider relief fund report to the U.S. Department of Health and Human Services. This report is to be prepared using accurate financial information and submitted by the deadline established. The Organization incorrectly counted salaries of certain employees twice on the period two report provider relief fund report. Context: The period two provider relief fund report was tested. During the testing procedures, it was discovered that the salaries of certain employees were included twice in the report. However, it was noted that the Organization had sufficient expenditures that covered the portion expenditures that were unallowed. Questioned Costs: $29,135 Effect: Errors were made in reporting expenditures in the period two provider relief fund report to the U.S. Department of Health and Human Services. Cause: The Organization?s internal controls around compliance were not effective in discovering errors in the expenditures reported. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend that management review all expenditures for accuracy and allowability under the criterial provided by the Department of Health and Human Services.

Categories

Questioned Costs Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 43247 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $804,593
21.027 Coronavirus State and Local Fiscal Recovery Funds $148,660
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $61,489
14.218 Community Development Block Grants/entitlement Grants $3,704