Finding 963419 (2021-003)

Assistance Listing Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19: Provider Relief Fund Finding Type - Material weakness Repeat Finding - No Criteria - According to 2 CFR § 200.303, HealthSource must establish and maintain effective internal controls over federal awards that provide reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition - HealthSource does not have a review process in place related to the Covid expense spreadsheet and lost revenue calculation used to input expenses into the required reporting submissions to the U.S. Department of Health and Human Services for the Provider Relief Fund program. HeathSource also did not have a review process in place for the required submissions. Questioned Costs - None Context - There was no independent review completed on the Covid expense spreadsheet, lost revenue calculation, or the reporting submission to evaluate the completeness and accuracy of the submission. Cause and Effect - The lack of an independent review of the Covid expense spreadsheet and the reporting submission could result in an increased risk of incomplete or inaccurate information included in the reporting submission. Recommendation - HealthSource should implement a process to ensure an independent review of the reporting submission and the documents used to input information into the reporting submission, such as the Covid expense spreadsheet, is completed prior to finalization. Views of Responsible Officials and Corrective Action Plan - Management agrees with the finding and will implement a process to ensure an independent review of the reporting submission and its supporting documents is completed prior to finalization.