Finding Text
Criteria or specific requirement: According to ? 2 CFR 200.303 Internal controls, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. According to HRSA's Provider Relief Lost Revenues Guide, grants would be excluded from the Patient Care Lost Revenue calculation. Condition: The Organization included grant revenue recognized within the Provider Relief Fund (PRF) Period 3 Lost Revenues calculation and Period 3 report. The Organization was able to recalculate their Period 3 Lost Revenues utilizing Option 1, 2019 actuals to 2020 actuals, less grant revenues recognized, which resulted in Lost Revenues of $1,329,975. Total PRF Period 3 funds received was $1,000,765. The Organization did not utilize any of the PRF Period 3 funds to reimburse expenditures. Questioned costs: None. Context: The Organization's PRF Period 3 report currently includes grant revenues within the 2019-2022 Actuals tables within the other section. Cause: Management Oversight. Effect: Future Lost Revenues available to be reimbursed by future PRF funds is currently less as shown on the PRF Period 3 report as the PRF Period 3 report includes grant revenues. Repeat Finding: No. Recommendation: We recommend the Organization provide HRSA with their revised Lost Revenues calculation as the current eligible lost revenues reported on the PRF Period 3 report appears to be understated. Views of responsible officials: Management concurs with the finding. Due to the complexity and lack of clarity on PRF reporting, the period 3 lost revenues calculation was understated. The HRSA portal is closed so Mental Health Partners is not able to provide an updated and current lost revenue report for Period 3. However, the Mental Health Partners has not received and does not anticipate receiving any additional PRF funds, so no future impact is expected or additional corrective action needed. Should additional funds be received, the CFO and Controller will adjust future reporting as needed.