Northside Center for Child Development, Inc.

Information on Federal Program: U.S. Department of Health and Human Services, Award Listing Number 93.498. Criteria: The Health Resources and Services Administration (HRSA) provided recipients of the U.S. Department of Health and Human Services COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Program (PRF Program) with a user guide to assist recipients with the completion and submission of the mandatory reporting requirements of the PRF Program. Chapter 4.13 Step 13 of the user guide issued by HRSA states, in part: ?On this worksheet, the reporting entity is required to report on the net unreimbursed expenses attributable to COVID-19 that have not been reimbursed by other sources and that other sources are not obligated to reimburse. Reporting entities must consider all other financial assistance received by HRSA and other sources, including Other PRF Payments, when determining net unreimbursed expenses attributable to COVID-19 reported on this worksheet.? Condition: During our examination of the Center?s special reporting requirements and submissions to the PRF Portal, we identified that for the Period 3 Portal reporting, the Center reported PRF expenses for payments of $478,981 and unreimbursed expenses attributable to COVID-19 of $2,648,620. Upon our reconciliation and examination, we noted that the unreimbursed expenses attributable to COVID-19 reported were not netted against the PRF payments of $478,981. We examined the underlying accounting records for expenses that should have been reported and concluded that the Center did have sufficient expenses to be reported to the PRF Portal for the Period 3 Portal payment submission. Summary of Expenses Reported - See Schedule of Findings and Questioned Costs for chart/table Summary of Expenses That Should Have Been Reported - See Schedule of Findings and Questioned Costs for chart/table Questioned Costs: None identified. Context: This is a condition identified during special reporting testing of COVID-19 relief funding. Cause: Reporting error was due to the Center not having sufficient controls in place surrounding it?s PRF reporting. Effect: The Center?s Period 3 Portal submission was inaccurate due to unreimbursed expenses attributable to COVID-19, which were reported incorrectly. There was no effect on the total PRF expenses claimed, as the Center had sufficient expenses to be reported in relation to the total PRF funds received. Recommendation: In order to facilitate accurate reporting and compliance with terms and conditions of federal awards, we recommend management to implement a process in which submissions are reviewed and assessed in their entirety to ensure submitted information agrees with the supporting documentation. Views of Responsible Official and Planned Corrective Action: The Center agrees with the federal award finding identified in the audit. The Center?s response to the finding is described in the accompanying management?s corrective action plan.