ATRIUS HEALTH, INC. AND AFFILIATESNon-Profit

2021-001: Unallowed COVID-19 expenditures reported within the Health Resources Services Administration (HRSA) Provider Relief Fund Portal Program: COVID-19 - Provider Relief Fund (PRF) Assistance Listing Number: 93.498 Agency: Department of Health and Human Services (HHS) Award Year: 1/1/2020-12/31/2021 Award Number: Not available Condition From the detailed listing of expenses comprising the support for the ?Other PRF Expenses? Atrius Health reported into the HRSA PRF Reporting Portal for Period 1, we selected 40 expenses for testing allowability in accordance with HHS terms and conditions. Of the 40 PRF expenses tested, 2 expenses totaling $6,070, for legal services, were not related to Atrius Health?s preparation, prevention, or response to coronavirus. In addition, through scanning the detailed listing of expenses, we identified 7 expenditures totaling $413,868 which Atrius Health had previously claimed and been reimbursed for under the Federal Communications Commission?s (?FCC?) COVID-19 Telehealth Program. Certain of these expenditures were tested during Atrius Health?s 2020 Uniform Guidance audit and should not have been included in the detailed listing of expenses used to support Atrius Health?s Period 1 PRF Reporting Portal submission. Criteria Law (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) notes that PRFs should be used to prevent, prepare for, and respond to coronavirus, domestically or internationally, for necessary expenses to reimburse, through grants or other mechanisms, eligible health care providers for health care related expenses or lost revenues that are attributable to coronavirus. Additionally, these funds may not be used to reimburse expenses or losses that have been reimbursed from other sources or that other sources are obligated to reimburse. Cause The causes of the issues noted above were as follows: In regards to the unallowable legal expenses identified, management's internal control over allowability was not designed to review individual transactions on a vendor invoice that had multiple transactions, to ensure all invoice line items were attributable to the preparation, prevention, or response to coronavirus. In regards to the accumulation of expenses to include in the PRF Reporting Portal submission, management did not have a review process to identify expenses previously reimbursed by other means. Effect Atrius Health?s Period 1 HRSA Reporting Portal submission inaccurately captured total ?Other PRF Expenses?. Questioned Costs $419,938 Recommendation We recommend management design and implement a transaction level internal control to review all elements of an invoice for allowability before allocating it to federal funds. Additionally, when preparing federal reports management should ensure the report is complete and accurate for the federal program the report pertains to and does not include any duplicative expenses that were previously reimbursed by other sources. This will help ensure the completeness and accuracy of future federal reports and/or HRSA Reporting Portal submissions. Additionally, we recommend management communicate the error noted in the submission to HRSA and request advice for how to fix this error. Management's View and Corrective Action Plan Management?s view and corrective action plan is included at the end of this report.