Finding Text
2022-004 Department of Health and Human ServicesFederal Financial Assistance Listing #93.498COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN#466000400Activities Allowed or Unallowed and Allowable Costs/Cost PrinciplesSignificant Deficiency in Internal Control over Compliance and NoncomplianceReportingSignificant Deficiency in Internal Control over Compliance and NoncomplianceCriteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.Condition: Insurance expense for the Hospital was claimed for all of 2021 under reporting period 1, and was also partially claimed under reporting period 4, resulting in duplicate expenses claimed in period 4.Cause: The Hospital?s review process over the period 4 expenses did not identify the duplicated insurance costs.Effect: Expenses included within the special report submitted to the Department of Health and Human Services for Period 4 TIN#466000400 relating to the duplicate insurance expenses were overstated by $26,616.Questioned Costs: No questioned costs reported. The Hospital reported significant unreimbursed expenses in the period 4 submission to cover the duplicated insurance costs. Key line items on the Period 4 report overstated Provider Relief Fund expenses by $26,616.Context/Sampling: Summary level testing was performed over mortgage, insurance, personnel costs for certain departments, and fringe benefits. Unreimbursed expenses were included in the summary level testing.Repeat Finding from Prior Years: YesRecommendation: We recommend management ensure any future expenditures submitted have not been previously claimed and are in accordance with the terms and conditions of the award.Views of Responsible Officials: Management agrees with the finding.