PINECREST MEDICAL CARE FACILITY

Assistance Listing Number, Federal Agency, and Program Name 93.498; U.S. Department of Health and Human Services; COVID 19: Provider Relief Fund and American Rescue Plan Rural Distribution Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria The 2 CRF Section 200.303 requires that nonfederal entities receiving federal awards establish, document, and maintain effective internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition The Facility does not have a review process in place related to the lost revenue calculation input into the required reporting submissions to the U.S. Department of Health and Human Services for the Provider Relief Fund program. The Facility also did not have a review process in place for the required submissions. Questioned Costs None Context During control testing of reporting (sample size of one), there was no independent review completed on the lost revenue calculation or the reporting submission to evaluate the completeness and accuracy of the submission. Cause and Effect The lack of an independent review of the lost revenue calculation and the reporting submission could result in an increased risk of incomplete or inaccurate information included in the reporting submission. Recommendation The Facility should implement a process to ensure an independent review of the reporting submission and the documents used to input information into the reporting submission, such as the lost revenue calculation, is completed prior to finalization. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding and will implement a process to ensure an independent review of the reporting submission and its supporting documents is completed prior to finalization.