Finding 622531 (2022-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 40855
Organization: Total Health Care, Inc. (MD)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The Health Center failed to submit accurate period two provider relief fund reports, leading to misreported lost revenues.
  • Impacted Requirements: Reporting must adhere to 45 CFR 75.342, requiring timely and accurate financial information.
  • Recommended Follow-Up: Update policies and procedures to ensure compliance with GAAP and improve the accuracy and timeliness of federal grant reporting.

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 Criteria or Specific Requirement ? Reporting (45 CFR 75.342) Condition ? The Health Center was required to prepare and submit period two provider relief fund (PRF) reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned costs ? None Context ?The period 2 provider relief fund report was tested. The Health Center selected option 1 to report lost revenues based on quarterly actuals. Amounts reported for each quarter were not based on a final audited trial balance. Effect ? Errors were made in reporting quarterly Total Revenue/Net Charges from Patient Care. Lost revenues were not accurately reported. Cause ? Final trial balances amounts were not available timely. Identification as a repeat finding ? Repeat finding- see 2021-002. Recommendation ? The Organization?s policies and procedures in effect at June 30, 2022, did not identify certain necessary adjustments required to present the financial statements in accordance with GAAP. Policies and procedures over federal grant reporting should be modified to ensure reports are prepared and report complete and accurate information timely.

Categories

Reporting

Other Findings in this Audit

  • 46089 2022-002
    Material Weakness Repeat
  • 46090 2022-003
    Material Weakness
  • 622532 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $5.66M
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $3.98M
93.498 Provider Relief Fund $1.07M
93.914 Hiv Emergency Relief Project Grants $254,496
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $111,169
93.461 Covid-19 Testing for the Uninsured $111