UNION COMMUNITY HEALTH CENTER, INC.

Finding 2021-001 Reporting Identification of the Federal Program: Federal Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing No.: 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Award Period of Performance: January 1, 2020 ? December 31, 2021 Criteria or Specific Requirement: Title 2, Subtitle A Chapter II Part 200 Subpart D Section 200.303 of the Uniform Guidance states the following regarding internal control: ?The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? The terms and conditions for the award requires the recipient to submit reports as the Secretary of HHS determines are needed to ensure compliance with conditions that are imposed on the payment and such reports shall be in such form, with such content, as specified by the Secretary of HHS in future program instructions directed to all recipients. Condition: Management noted that the Period 2 report submitted in the HHS portal had an error which resulted in the calculation of lost revenues attributable to COVID-19 being reported incorrectly. Cause: Management did not have effective internal controls in place to ensure the reported lost revenue attributable to COVID-19 reported in the HHS portal were free from error. Effect or Potential Effect: The calculation of lost revenues attributable to COVID-19 was reported incorrectly in the HHS portal. Questioned Costs: None. Context: During our testing over reporting, we tested periods 1 and 2 HHS portal submissions. We noted the calculation of lost revenues attributable to COVID-19 for Period 2 included an overstatement of lost revenue in the amount of $2.2 million due to a department?s actual revenue being erroneously excluded from the calculation. Total lost revenues submitted in the HHS portal were $5.6 million for Period 2. Management?s control regarding the review of the PRF report and the supporting data entry workbook did not identify this error when submitting the Period 2 submission to the HHS portal. Lost revenues incurred during the period of availability exceeded the PRF distributions received by approximately $2.6 million exclusive of the error noted above. Recommendation: Management should develop and implement effective internal controls to ensure accurate reporting in the HHS portal. This will ensure the calculation of lost revenues attributable to COVID-19 is reported correctly and all required information is captured. View of Responsible Officials: Management agrees with the finding. Management will correct the reporting error in the next HHS portal reporting submission period. Management has also enhanced its formal review and approval process over the data used to calculate expenses.

GSA_MIGRATION