Finding Text
Finding 2022-002 ? Internal Control Deficiency over L. Reporting Identification of the federal program: Federal Grantor: United States Department of Health and Human Services, Health Resources and Services Administration (HRSA) Assistance Listing No.: 93.498 Provider Relief Funds Award Period of Performance: July 1, 2021 ? June 30, 2022 Criteria or Specific Requirement (including statutory, regulatory or other citation): Section 200.303 of the Uniform Guidance states the following regarding internal control: ?The non-Federal entity must: (a) 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). Condition: Per discussion with management, the Company has processes and internal controls in place to ensure the lost revenue calculation submitted for PRF was complete and accurate and complied with the terms and conditions as reported in the HRSA Portal filings. However, management did not retain documentation evidencing the performance of these controls. Effect or potential effect: There is no documentation to support the performance of internal controls for the lost revenue calculation. Questioned Costs: None Context: Total PRF lost revenues were $26,172,865. Management selected budget versus actual to calculate lost revenues. The amounts reported agreed to the budget and actual revenues as reported in the portal. Identification as a repeat finding, if applicable: The finding is a repeat finding. Recommendation: Management should refine its process and retain documentation evidencing that management reviewed the completeness and accuracy of the lost revenue calculation. View of Responsible Officials: Management agrees with the finding. Management will develop internal controls to review and approve supporting documentation and calculations of the Provider Relief Fund federal lost revenues.