MINNESOTA MASONIC HOME CARE CENTER

2021-001 Federal agency: U.S Department of Health and Human Services Federal program title: Provider Relief Fund Assistance Living Number: 93.498 Type of Finding: Significant Deficiency in Internal Control over Compliance 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 Condition: The Organization inadvertently recorded payroll costs in period 1 and 2 for the same employees. Questioned costs: $34,608 Context: During the audit, it was noted that two of the 50 payroll disbursements tested were recorded in reporting periods 1 and 2. The Organization relied on federal reporting guidelines that were clarified and refined between Reporting Periods One and Two. The Organization had previously reported costs in Reporting Period One that were to be included in Reporting Period Two, resulting in the costs being reported twice. However, it was noted that the Organization had sufficient expenditures and lost revenues that covered the portion of the expenditure that was reported twice. Cause: Management Oversight Effect: The Organization inadvertently recorded payroll costs in period 1 and 2 for the same employees. Repeat Finding: N/A Recommendation: We recommend that management review all expenditures for accuracy and allowability under the criteria provided by the Department of Health and Human Services. However, it was noted that the Organization has enough excess unreimbursed expenses and lost revenues to cover the disbursements noted above and retain the grant funding. Views of responsible officials: There is no disagreement with the audit finding.