Finding 980041 (2023-001)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-06-27
Audit: 310615
Organization: McLeod Health (SC)

AI Summary

  • Core Issue: The Organization failed to effectively review expenses, leading to a duplicate invoice being submitted.
  • Impacted Requirements: Compliance with the Provider Relief Fund and ARP reporting requirements, specifically regarding allowable expenses.
  • Recommended Follow-Up: Implement specific procedures in the review process to prevent duplicate expenses from being submitted.

Finding Text

Assistance Listing, Federal Agency, and Program Name - 93.498, COVID 19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Award Identification Number and Year - N/A, 2023 Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - Per the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Post Payment Notice of Reporting Requirements dated February 16, 2024, recipients may use payments for eligible expenses so long as the expenses were to prevent, prepare for, and respond to coronavirus not reimbursed by other sources or that other sources are obligated to reimburse. Condition - The Organization had a control to review the allowable expenses identified under this award; however, the control was ineffective and resulted in the inclusion of a duplicate invoice in the portal submission. Questioned Costs - $1,400 Identification of How Questioned Costs Were Computed - The questioned costs total the amount of the invoice identified as a duplicate expense. Context - Out of a sample of 40 expenses, we identified expenses from 1 invoice that were incorrectly included in the detail of expenditures twice. Cause and Effect - The Organization designed controls related to identification of allowable costs, which included a review of the of the expense listing; however, the review process did not effectively identify an expense that was included twice. The failure to have an effective control in place caused the Organization to duplicate an expense within their portal submission. Recommendation - We recommend that the review process include specific procedures to ensure that no expenses have been included more than once. Views of Responsible Officials and Corrective Action Plan - An additional review process for duplicate invoice numbers will be included going forward after our contracted reviewer performs their review.

Categories

Questioned Costs Allowable Costs / Cost Principles Reporting Significant Deficiency

Other Findings in this Audit

  • 403599 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Covid-19 - Provider Relief Fund and American Rescue Plan Rural Distribution $24.42M
32.006 Covid-19 Telehealth Program $763,320
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $735,728
93.247 Advanced Nursing Education Grant Program $257,602
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $139,860
93.155 Rural Health Research Centers $125,306