Finding 979618 (2023-002)

Assistance Listing Number: 93.498 Program Title: COVID-19 Provider Relief Fund Award Number / Year: Not applicable / 2023 Pass-Through Entity: Not applicable Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Recipients of Provider Relief Funds (PRF) payments must also comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services (DHHS). Condition: The Period 5 Report (only report for FY2023) and the revenue loss calculation were not reviewed and approved by an independent person separate from the preparer prior to submission to DHHS. The sample was statistically valid. Cause: The City did not have internal control processes and procedures in place requiring an independent person to review the reports before submission to ensure the loss revenue calculation and amounts reported were accurate. Effect: Information within the period reports submitted, including the lost revenue calculations, could contain errors. Questioned Costs: None noted. Recommendation: The City should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports in place before submissions to federal agencies.