Finding Text
Department of Health and Human Services
Federal Financial Assistance Listing #93.498
COVID‐19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution
Applicable Federal Award Number and Year – Period 1 and Period 2 TIN #201209404,
Period 1 and Period 2 TIN #208729268, Period 2 TIN #262181659, Period 1 and Period 2
TIN #273274611, Period 2 TIN #800015864
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 Organization’s final expenditure listing and lost revenue identified as eligible
and claimed under the Provider Relief Fund program did not have documented review and
approval by a separate individual outside of the preparer. In addition, the Organization’s
special reports submitted to the Department of Health and Human Services (HHS) for
Period 1 and Period 2 were not reviewed and approved by a separate individual outside of
the preparer.
Cause: The Organization did not have an adequate internal control policy in place to ensure
review and approval over the final expenditure listing, lost revenue calculation claimed
under the federal program, or preparation of HHS Period 1 and 2 reporting were
documented.
Effect: The lack of adequate policies governing review and approval increases the risk that
employees participating in the federal award administration may not be able to detect and
correct noncompliance in a timely manner.
Questioned Costs: None reported.
Context: Key line items were tested on the Period 1 and 2 Department of Health and Human
Services special reports.
Repeat Finding from Prior Years: No
Recommendation: We recommend the Organization implement a control process which
includes a secondary review and approval of the summarized final expenditure listing used
to claim the allowable costs and lost revenue calculation under the federal program and a
secondary review and approval of required reports to be submitted to the federal agency.
Views of Responsible Officials: Management agrees with the finding.