Finding Text
Identification: 93.498 United States Department of Health and Human Services, Provider Relief Fund; Noncompliance Finding/Material Weakness; Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Compliance Requirements. Criteria: The Provider Relief Fund (PRF) was established under the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116‐136, 134 Stat. 563) and the Coronavirus Relief and Response Supplemental Appropriations Act (Pub. L. No. 116‐260). The PRFs are to be used to prevent, prepare for, and respond to coronavirus. The PRFs are to reimburse recipients only for health care related expenses or lost revenues that are attributable to coronavirus. Recipients who received one or more payments exceeding $10,000 are required to report in each applicable reporting period. Condition: The Authority did not meet the requirement that the PRFs are to be used to prevent, prepare for,
and respond to coronavirus. Cause: The Authority used the initial PRF reporting guidelines that indicated the PRFs could be used to maintain health care service delivery. The Authority identified general ledger account balances that contained expenditures to maintain hospital operations. The expenditures in these accounts were included in the Excel tracking spreadsheet that was used to complete the reporting submission. The expenditures in each account were not reviewed to determine if the amount was directly attributable to preventing, preparing, or responding to coronavirus based on revised reporting guidelines issued by the Department of Health and Human Services. Effect: The Authority's Period 1 submission contained errors in reporting other PRF expenses. Questioned costs: Unknown Perspective Information: In the sample of 60 and 1 individually significant, there were 7 instances, totaling $7,161, noted from the sample that the Authority identified as not being directly attributable to preventing, protecting, and responding to coronavirus. In addition, there were 27 instances, totaling $50,787, in which the Authority identified the items as being related to preventing, protecting, and responding to coronavirus but from the supporting documentation, these items appeared to be for maintaining health care delivery. Repeat Finding: N/A Recommendations: We recommend policies and procedures over PRF reporting be strengthened to ensure that only amounts that are directly attributable to preventing, protecting, and responding to coronavirus be included. These procedures should include processes to ensure that all guidance pertaining to the PRF is reviewed to ensure accuracy and completeness. Views of Responsible Officials: The Authority used the initial PRF reporting guidelines that indicated that the PRFs could be used to maintain health care service delivery. Due to limited staff, including staff turnover, and the need to focus their efforts on maintaining health care delivery including caring for COVID‐19 patients, the Authority was not able to keep up with the continuously changing guidance pertaining to the use of the PRF. For future federal funding, the Authority plans to more closely monitor the guidelines surrounding the funding and work with outside consultants for new federal programs or those programs that have constantly changing guidance.