Finding 2023-001
material weaknessrepeat findingquestioned costsmodified opinion
- Program
- PROVIDER RELIEF FUND (93.498)
- Compliance requirement
- Allowable costs/cost principles; Reporting
- Repeat
- Chain of 2 audit years; prior finding 2022-002
- Questioned costs
- $1,186,510 (known)
- FAC record
- FY2023 audit on fac.gov
Finding text from the filing
Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services
Criteria or Specific Requirement – Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622, Pub. L. No. 116-260, Pub. L. No. 117-2)
Condition – The Organization is required to prepare and submit period four Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Allowable costs must be expenses that are unreimbursed by other sources and must be used to prevent, prepare for, and respond to coronavirus.
Questioned Costs – $1,186,510; Calculated as total expenses charged to PRF for period four.
Context – The period four PRF report was tested. The Organization selected to apply expenses attributable to coronavirus for period four report as well as include lost revenue. The original amounts reported on the period four report were expenses reimbursed by other sources. The lost revenue calculation was appropriately supported.
Effect – The Organization applied expenses to period four that did not meet the definition of qualifying expenses that are unreimbursed by other sources.
Cause – Internal controls were not in place to ensure the Organization correctly applied guidance issued by the Department of Health and Human Services (HHS).
Identification as a Repeat Finding – Yes. Finding 2022-002.
Recommendation – Policies and procedures over the program should be monitored to ensure reporting is prepared using complete and accurate information and to ensure that allowable costs are charged to the PRF program.