Manning Regional Healthcare

Finding No. 2021-001 Federal Program: CFDA #93.498 US Department of Health and Human Services Provider Relief Fund Criteria: The terms and conditions of the CARES Act Provider Relief Fund (PRF) distributions state that funds are to only be used to prevent, prepare for and respond to coronavirus, and that funds may only be used for healthcare related expenses or lost revenue that is attributable to the coronavirus. Condition: During the process of identifying expenses that were incurred to prevent, prepare for or respond to the coronavirus pandemic, management inadvertently computed employee benefits on contract labor costs. Cause: Due to the amount of detailed information that was required to be compiled by management in order to enter data into the PRF reporting portal, management inadvertently computed employee benefits on contract labor costs. Effect: Management included amounts in the PRF reporting portal which were not eligible based on the terms and conditions of the PRF distributions and subsequent HRSA guidance. Questioned Costs: Total questioned costs related to CFDA #93.498 amounted to $29,377 and were calculated using contract labor costs to estimate employee benefit expense. Context: The PRF and HRSA guidance indicate the funds received may only be used for healthcare related expenses that are attributable to the coronavirus. The Healthcare Center did not incur employer benefit costs on contract labor included in the PRF reporting portal. Recommendation: We recommend that management continue to monitor and enhance its internal controls over federal award compliance to ensure that only eligible costs are included in amounts expended. Views of Responsible Officials and Planned Corrective Action: Management agrees with the noted finding. However, the Healthcare Center also incurred and reported unreimbursed expenses attributable to coronavirus in the PRF reporting portal that if the noted questioned costs were not to be reported, the Healthcare Center would have satisfactorily incurred eligible expenses in excess of the PRF funds received, including interest earned on such funds. Management will continue to refine processes to more diligently review PRF expenditures to ensure only eligible costs attributable to coronavirus are included in future reporting.

Finding No. 2021-001 Criteria: The terms and conditions of the CARES Act Provider Relief Fund (PRF) distributions state that funds are to only be used to prevent, prepare for and respond to coronavirus, and that funds may only be used for healthcare related expenses or lost revenue that is attributable to the coronavirus. Condition: During the process of identifying expenses that were incurred to prevent, prepare for or respond to the coronavirus pandemic, management inadvertently computed employee benefits on contract labor costs. Planned Corrective Action: Management will continue to refine processes to more diligently review PRF expenditures to ensure only eligible costs attributable to coronavirus are included in future reporting. However, the Healthcare Center also incurred and reported unreimbursed expenses attributable to the coronavirus in the PRF reporting portal that if the noted questioned costs were not to be reported, the Healthcare Center would have satisfactorily incurred eligible expenses in excess of the PRF funds received, including interest earned on such funds. Planned Completion Date: Ongoing Person Responsible: Amy McLaughlin, CFO