Finding Text
Department of Health and Human Services Federal Financial Assistance Listing #93.498 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #263778478 Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Reporting Significant Deficiency in Internal Control Over Compliance 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 eligible expenses claimed and reported under the Provider Relief Fund program contained errors. Cause: The error related to not identifying expenses that were reimbursement from other sources. Effect: The expenses reported as eligible for the American Rescue Plan (ARP) Rural Distribution were overstated. Questioned Costs: None. The Authority had adequate supporting unreimbursed expenses in excess of the total error identified. Context: A sample of 36 expenditures totaling $364,285 out of a total population of 155 expenditures totaling $660,015 were tested and 2 selections contained errors. One of the errors could be applied to the population to identify the total actual error of $13,104. The second error was $75. Repeat Finding from Prior Years: No Recommendation: We recommend the Authority implement new control process which ensures amounts reported are reviewed and accurately reported. This review should include consideration of any other reimbursement sources. Views of Responsible Officials: Management agrees with the finding.