Finding 626043 (2022-002)

Finding 2022-002 Program ALN: 93.498 Program Title: COVID-19 Provider Relief Fund Award Number/Year: Not applicable / 2022 Federal Agency: U.S. Department of Health and Human Services Repeat of Finding 2021-004 Criteria: Nonfederal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Recipients of Provider Relief Funds (PRF) payments must also comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services (HHS). Condition/Context: Both reports selected for testing were not reviewed and approved by an independent person separate from the preparer prior to submission to DHS. In addition the amounts reported could not be supported by expense details and awards were incorrectly claimed against expenses when they were meant to be applied against available lost revenues. The sample was not statistically valid. Cause: The County did not have internal control processes and procedures in place requiring an independent person to review the reports before submission to ensure the amounts reported were accurate. Effect: Information within the period reports contained errors. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports are in place before submissions to federal agencies.