JEWISH ASSOCIATION ON AGINGNon-Profit

2021-001 Federal agency: U.S. Department of Health and Human Services Federal Program Title: COVID-19 Provider Relief Fund Assistance Listing #: 93.498 Award Period: Year ended June 30, 2021 Type of Finding: ? Material Weakness in Internal Controls over Compliance ? Material Noncompliance Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. These funds may not be used to reimburse expenses of losses that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition: The Organization's internal controls over reporting were not effective. Questioned costs: N/A Context: During the audit, it was determined that two out of two filings for reporting Period 1 reported expenditures that did not have underlying supporting documentation. The total amount of reported costs was $889,759. Cause: Management intended to allocated all Provider Relief Funds to lost revenue, however, erroneously reported the expected eventual use of such funds. Actual expenditures related to Provider Relief Funds in reporting Period 1 were not tracked as these funds were intended to be used for lost revenue. Effect: The Organization is not in compliance with federal rules and guidelines over the reporting of Provider Relief Funds. Recommendation: We recommend management review the reporting requirements for expenditures and lost revenue under the criteria provided by the Department of Health and Human Services and implement review procedures to ensure future report submissions properly report the use of funds. Views of Responsible Officials and Planned Corrective Actions: Management understands the need for the auditor to report the findings and acknowledges the errors in completing the HRSA report. It was Managements understanding that the funds were eligible to be used to support lost revenues, so long as the Organization incurred that level of expense prevent, prepare for, and respond to coronavirus. Therefore, Management erroneously reported expenses in an amount equal to the funds received. However, Management should have simply reported the amount of lost revenues. Management notes that the Organization had lost revenues in excess of $4.7 million during the period in which the report included (January 2020 through June 2021). We note that we have sufficient lost revenue related to reporting Period 1 to utilize the Provider Relief Funds and although we did not report this lost revenue we do not need to return the Provider Relief Funds. We will implement additional reviews of future submissions before reports are submitted.