Finding 963916 (2023-001)

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Funding Assistance Listing Number: 93.498 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipients only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: During our testing, we noted that the Organization used an incorrect price per unit for 27 of 41 disbursement selections. Questioned costs: $66,582 Context: During our testing, we noted that the Organization used an incorrect price per unit for 27 of 41 disbursement selections. Cause: The Organization's inventory management system was not being updated with the current cost per unit. The expense is based on the purchase order and the inventory was adjusted when the actual invoice was received, however; the inventory adjustment does not get posted to the original line item. Effect: The information in the submission could be incorrect. Recommendation: We recommend the Organization review calculations to ensure that the proper amounts are used. Views of responsible officials: There is no disagreement with the audit finding.