Finding 98109 (2022-001)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-03-07

AI Summary

  • Core Issue: UTPCF reported expenses inaccurately for the Provider Relief Fund, duplicating costs between two reporting periods.
  • Impacted Requirements: Compliance with laws and regulations regarding allowable costs was not met due to misstatements in the filings.
  • Recommended Follow-Up: Ensure future HRSA filings accurately reflect expenses to prevent similar issues.

Finding Text

2022-001 Allowable Costs Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Fund AL Number: 93.498 Award Period: July 1, 2020 ? December 31, 2020 (Period 2) and January 1, 2021 ? June 30, 2021 (Period 3) Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or specific requirement: Costs applied to the report must be in compliance with certain provisions of laws, regulations, contracts, and grant agreements. Condition and Context: UTPCF?s Provider Relief Fund filings with the Health Resource and Service Administration (HRSA) contained misstatements of expenses for period 3. Cause: UTPCF inadvertently included the same expenses twice, once in Period 1 and once in Period 3. Effect: The expense amount reported to HRSA for Reporting Period 3 was misstated. The misstatements had no impact on the amount of Provider Relief Funds that UTPCF was allowed to retain since UTPCF had an excess of lost revenues over the amount of Provider Relief Funds received. Questioned Costs: $492,698 Repeat finding: No Recommendation: We recommend that UTPCF ensure that future filings with HRSA accurately report expenses. Management?s Response: Management agrees with the finding and has taken steps to ensure the accuracy of expenses in its future filings. However, it is noted there was sufficient lost revenue to support the PRF distributions received.

Corrective Action Plan

2022-001 Provider Relief Fund ? Assistance Listing No. 93.498 Recommendation: We recommend that UTPCF ensure that future fillings with HRSA accurately report expenses. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The error in reporting was due to an oversight when entering information in the portal. Management will ensure corrections are made in the future, and that any future reporting has additional scrutiny of the information entered before submission. Additionally, management will put a process into place to have a second review of all filings before submission. However, it is noted that there was sufficient lost revenue to support the PRF distributions received. Name(s) of the contact person(s) responsible for corrective action: John Huber, CFO Planned completion date for corrective action plan: We look to HRSA for guidance on how to correct the Period 3 report or will correct the error in a future reporting period.

Categories

Questioned Costs Allowable Costs / Cost Principles Material Weakness Reporting Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 98110 2022-002
    Material Weakness
  • 674551 2022-001
    Material Weakness
  • 674552 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $3.40M