Finding Text
2023-001
U.S. Department of Health and Human Services
COVID-19 - Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution
ALN 93.498
Federal Award Year: 2023
Type of Finding: Significant Deficiency
Finding: Swope Health Services and Subsidiaries expended federal funding on an invoice with a service period outside of the Period of Availability for Period 5 of the Provider Relief Fund.
Criteria: Provider Relief Fund disbursements are separated into various reporting periods based on the timing of the original payment received by the Organization. The Organization received funding under Period 5 that has a period of availability of January 1, 2020 to June 30, 2023. All expenditures reimbursed by the Period 5 funds must be incurred within this period.
Condition: The Organization used PRF funding to cover the cost of a patient registration program for one year. The contract was paid for and signed during the period of availability but a portion of the cost of the program was not incurred until after June 30, 2023.
Cause: The Organization did not have review controls in place to ensure that only expenditures with the applicable period of availability were allocated to the grant.
Effect: Noncompliance with federal regulations over the period of allowability could impact future funding.
Context: One invoice out of forty tested for this program was outside the period of availability.
Questioned Costs: $80,813
Repeat Finding: No
Recommendation: We recommend that the Organization implement procedures to properly review the period of availability when applying expenditures to federal grants.
Management Response: Management agrees with the finding. See corrective action plan.