Finding Text
Department of Health and Human Services Federal Assistance Listing #93.498 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 1 TIN #736060835 Reporting Significant Deficiency in Internal Control Over Compliance and Noncompliance Not Considered Material Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Authority?s Period 2 HRSA report contained an error in two key line items. Cause: The Authority?s internal controls in place to review the report before submission did not identify the error in the report. Effect: The Medicare C revenue and total revenue for the first quarter of 2021 was overstated by $300,000 on the HRSA Period 2 report. The result did not affect the lost revenues calculated. Questioned Costs: None. Context: All key line items on the HRSA Period 2 report were tested. No sampling was used. Repeat Finding from Prior Years: Yes Recommendation: We recommend the Authority modify internal control policies to ensure amounts reported agree to the supporting documentation. Views of Responsible Officials: Management agrees with the finding.