Finding Text
Finding 2022-001 ? Reporting Federal Program: COVID-19 Provider Relief Fund ALN: 93.498 Federal Agency: U.S. Department of Health and Human Services Federal Award Years: January 1, 2020 through December 31, 2021 Criteria: 45 CFR section 75.303 (a) states non-federal entities must: 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. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government,? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework,? issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 45 CFR section 75.303 (b) states non-federal entities must: Comply with Federal statutes, regulations, and the terms and conditions of the Federal awards. Recipients of provider relief funds must support all expenses with adequate documentation and maintain proper control documentation to substantiate that these funds were used for health care-related expenses or lost revenues attributable to coronavirus. Condition Found, Including Perspective: There is no evidence of management?s review of grant reports prior to their submission to the U.S. Department of Health and Human Services.Possible Cause and Effect: While Owensboro Health, Inc. maintains that some manual review did take place prior to submission, controls were not designed or implemented effectively to maintain evidence of management's manual review. Such reviews took place verbally over phone calls, online meeting platforms, and emails, which were not recorded or retained. Questioned Costs: None. Statistical Validity: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding in the Prior Year: This is not a repeat finding. Recommendation We recommend that management implement appropriate controls and processes to review the grant reports prior to submission and to provide evidence of the related review. Views of Responsible Officials: Owensboro Health, Inc. will implement controls and processes to ensure grant reports are reviewed prior to submission and that evidence of review is maintained.