Finding Text
Finding 2021-007
Program Name/CFDA Title: Provider Relief Fund
Federal Assistance Listing Number: 93.498
Federal Agency: U.S. Department of Health and Human Services
Type of Finding: Significant Deficiency
Compliance Requirement: Allowable Costs, Cost Principles
Condition: The Organization’s internal controls over compliance related to expenses were not effective.
Criteria: The Provider Relief Funds (PRF) were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus. The funds are to be used to reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus.
Context: During the audit, it was determined that 7 of 40 expenses tested did not have adequate supporting documentation and did not appear to be related to the prevention, preparation, or response to coronavirus, and 1 of 40 expenses tested included a coding error where an amount from the invoice was incorrectly recorded to coronavirus expense.
Cause: Management oversight over coronavirus expenses was not effective.
Questioned Costs: None.
Effect: The Organization’s internal controls around compliance were not effective.
Recommendation: We recommend that management review all expenditures for federal awards for accuracy under the criteria provided by the U.S. Department of Health and Human Services to ensure all supporting documentation is properly maintained and all errors are identified and corrected timely.
Response of Responsible
Officials: The Organization concurs with this recommendation. Management will review calculations and supporting documentation for all expenditures for federal awards to ensure accuracy in future reporting.