Finding 624674 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-27

AI Summary

  • Core Issue: Management did not report Provider Relief Fund expenses for the correct years, leading to misallocation of funds.
  • Impacted Requirements: Reporting obligations to the U.S. Department of Health and Human Services were not met, affecting compliance with federal award program guidelines.
  • Recommended Follow-Up: Management should review and strengthen internal policies to ensure accurate reporting for future submissions.

Finding Text

Finding No. 2022-002 Grantor: U.S. Department of Health and Human Services Program Names: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program Federal Assistance Listing Number: 93.498 Criteria: Management is required to report on the use of the Provider Relief Funds in portal submissions to the Department of Health and Human Services (HHS). Condition and Context: Management failed to report the use of Provider Relief Funds for the proper year the expenses were incurred for the Period 4 Provider Relief Fund Reporting Period Expenses should have been allocated for the years 2020, 2021 and 2022. Cause: Management's unfamiliarity with the requirements of a federal award program and lack of internal controls over financial reporting for federal awards. Effect or potential effect: Management utilized lost revenues and infection control expenses in excess of the funding reported in Periods 1 through 4. No expenses reported in Period 4 were reimbursed from any other source. It is noted that at this time there is not a mechanism to amend the portal submission. Questioned Costs: None Recommendation: We recommend that management review its internal policies to ensure that all guidance is followed for each submission. Views of responsible officials: Management has acknowledged the PRF report submitted to the HRSA PRF reporting portal was not allocated properly for the periods expenses were incurred.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 48231 2022-001
    Significant Deficiency Repeat
  • 48232 2022-002
    Significant Deficiency
  • 624673 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $2.52M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.24M