Finding 98110 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-07

AI Summary

  • Core Issue: There was a material weakness in internal controls over compliance, leading to an incorrect report for the Provider Relief Fund.
  • Impacted Requirements: The report inaccurately claimed $6,511,669 in lost revenue, which could result in overclaims against the fund.
  • Recommended Follow-Up: Review the Provider Relief Fund reporting guidelines and ensure all claimed amounts are accurately calculated to prevent future errors.

Finding Text

2022-002 Reporting 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: Lost revenues can be claimed against the Provider Relief Fund during the reporting period. Condition and Context: During our testing we noted the Provider Relief Fund report was incorrectly completed and an additional $6,511,669 of lost revenue was reported. Cause: Clerical error in completion of the lost revenue reporting table in the Provider Relief Fund Period 3 report. Effect: Potential to overclaim lost revenue against the Provider Relief Fund. Questioned Costs: None identified. Repeat finding: No Recommendation: We recommend that UTPCF review the Provider Relief Fund reporting guidelines to make sure the amounts claimed are in line with the guidelines. We also recommend a review take place to make sure all amounts claimed are correctly calculated. Management?s Response: Management agrees with the finding and has taken steps to ensure the accuracy of lost revenue reported in future filings. However, it is noted there was sufficient lost revenue to support the PRF distributions received.

Corrective Action Plan

2022-002 Provider Relief Fund ? Assistance Listing No. 93.498 Recommendation: We recommend that UTPCF review the Provider Relief Fund reporting guidelines to make sure the amounts claimed are in line with the guidelines. We also recommend a review take place to make sure all amounts claimed are correctly calculated. 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 future reporting periods.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 98109 2022-001
    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