Finding 969037 (2021-001)

Significant Deficiency Assistance Listing 93.498 Criteria: The Department of Health and Human Services provided terms and conditions associated with the Provider Relief Fund (“PRF”). Those terms and conditions outlined the usages of the PRF distributions received, specifically related to expenses. PRF distributions should only be used to prevent, prepare for, and respond to the coronavirus that have not been reimbursed from other sources or that other sources are not obligated to reimburse. Management should have effectively designed controls in place to prevent, or to detect and correct, noncompliance and related financial reporting misstatements. Condition: The Hospital internal control over Provider Relief Fund and American Rescue Plan (“ARP”) Rural Distributions resulted in ineligible costs reported on the Department of Health and Human Services PRF portal submission. Questioned Costs: $104,407 Effect: The Hospital overstated healthcare related expenses submitted through the Department of Health and Human Services PRF portal for the first period of availability by including ineligible expenses. Cause: Lack of effectively implemented controls, including oversight and detail review of expenditures submitted through the Department of Health and Human Services PRF portal for the first period of availability. Auditor’s Recommendation: Effective controls over compliance and financial reporting should be implemented to ensure expenditures submitted through the Department of Health and Human Services PRF portal meet the criteria established in the terms and conditions. Management Response: See corrective action plan.