SAN SIMEON BY THE SOUND CENTERNon-Profit

Finding No. 2021-001 Criteria: Management is required to report on the use of the Provider Relief Funds in portal submissions to the Department of Health and Human Services (HHS). Condition and Context: Management erroneously included Provider Relief Fund infectious control payments of $1,168,983 and $1,385,883 in Period 1 and Period 2 in the other assistance received section. Cause: Management's unfamiliarity with the requirements of a federal award program and lack of internal controls over financial reporting for federal awards. Effect or potential effect: Management utilized lost revenues and infection control expenses in excess of the funding received in Period 1 and in Period 2. No expenses reported in either Period were reimbursed from any other source. It is noted that at this time there is not a mechanism to amend the portal submission. Questioned Costs: None Recommendation: We recommend that management maintain internal controls over financial reporting for federal awards to ensure that future submissions are recorded correctly. Views of responsible officials: Management has acknowledged that Period 1 and Period 2 of the PRF reporting portal incorrectly reported PRF as other assistance. The total of lost revenue and eligible expenditures, substantially exceeds the amount of Provider Relief Funds received. Management will maintain all documentation relating to lost revenue and expenditures to support the use of the funds.