Finding Text
Finding No. 2022-008 – Provider Relief Fund Reporting Time Period
Name of Federal Agency
U.S. Department of Health and Human Services (HHS)
Pass-through Entity
N/A
Category
Non-compliance / Material weakness in internal controls over compliance
Compliance Requirements
Reporting
Criteria
According to the guidelines governing the Provider Relief Fund (PRF), recipients who received one
or more PRF and or ARP payments exceeding $10,000, in the aggregate, during a Payment Received
Period are required to report in each applicable Reporting Period as outlined in a provided timetable
by the Health Resources & Services Administration. The table below is the applicable to the funds
received by the Corporation:
Condition
The Corporation did not report the entire amount of Provider Relief Funds expensed during Period
1 by the Reporting Time Period.
By unintentional error, the Corporation reported those transactions that were already paid as of June 30, 2021, instead of reporting all transactions that were already incurred and supported with a purchase order by the end of the Period of Availability for Expenses.
Effects
As a result of this condition, the Health Resources & Services Administration may request the return of funds, issue warnings and/or impose penalties to the Corporation.
Questioned Cost
None.
Context
The Corporation reported on the schedule of expenditures of federal awards expenses amounting to $1,465,048 in connection with the Provider Relief Fund. However, the Corporation reported on the Health Resources and Service Administration portal expenses amounting to $1,092,303 by the Reporting Time Period. Funds amounting to $372,745 are still pending to be reported as of the date that the financial statement were available to be issued.
Identification of a repeat finding
This is not a repeat finding from the immediate previous audit.
Recommendations
The management of the Corporation should reinforce its procedures of the administration of federal funds to ensure the compliance with the requirements with each program. Also, the Corporation should establish communication with the Health Resources & Services Administration in order to obtain instructions for the correction of the non-compliance event.
Views of responsible officials and planned corrective actions
The Corporation’s management and responsible officers agree with this finding. Please refer to the corrective action plan section for the Corporation’s response on pages 89 to 98.