Finding Text
Identification: 93.498 United States Department of Health and Human Services, Provider Relief Fund; Material Weakness; Reporting Compliance Requirement 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 have policies and procedures in place to calculate lost revenues under options i, ii, or iii and include as applicable in the reporting submission. Cause: The Authority's spreadsheet for tracking PRF expenditures included a lost revenue calculation. However, it was incomplete and was not considered for updating and inclusion when the reporting submission was completed. Effect: Potential understatement of lost revenues to be used as eligible expenditures for the PRFs. Questioned costs: N/A Perspective Information: No audit procedures were performed for lost revenues as the calculation was incomplete and not included in the reporting submission. Repeat Finding: N/A Recommendations: We recommend policies and procedures over PRF reporting be strengthened to ensure that lost revenues are calculated and if applicable reported in accordance with PRF reporting guidance. Views of Responsible Officials: In the future, the Authority will develop a spreadsheet to calculate lost revenues as necessary based on applicable guidance. The Authority will be sure to include this calculation in the reporting submission even if they feel expenditures are adequate to cover the federal award received.