Episcopal Homes of Minnesota and AffiliatesNon-Profit

U.S. Department of Health and Human Services ALN: 93.498 Provider Relief Fund (PRF) Type of Finding: Noncompliance and Internal Control, Significant Deficiency Compliance Requirement: Allowable Costs Condition: The Organization is required to use the Provider Relief Funds to prevent, prepare for, and respond to coronavirus and to maintain documentation that supports that payments to reimburse the Organization were for healthcare-related expenses attributable to coronavirus or lost revenues. Criteria: 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. Per the terms and conditions of the Provider Relief Fund, payments received may not be applied to the same expenses and lost revenues that Provider Relief Fund payments received in prior payment periods already reimbursed. Cause: The Organization inadvertently reported covid-expenditures into the reporting portal for Reporting Period 6 that had been reported in Reporting Period 1. Effect: The amounts reported in the portal for Reporting Period 6 had payroll disbursements, totaling $217,244, which were previously reporting in Reporting Period 1. The Organization had sufficient lost revenues to cover these duplicated expenses. No funds were estimated to be due back to the Provider Relief Fund. Questioned Costs: None. Recommendation: We recommend the Organization ensure supporting documentation and reporting requirements for federal grant funds are properly reviewed to ensure submission information is accurately presented. View of Responsible Officials: The Organization agrees with the finding and recommendation and will review procedures to ensure future reporting submissions are detail reviewed.

Finding 2021-002 Program Name/Title: Provider Relief Fund, Federal Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Type of Finding: Noncompliance and Internal Control, Significant Deficiency, Compliance Requirement: Allowable Costs Condition: Episcopal Homes of Minnesota and Affiliates are required to use the Provider Relief Funds to prevent, prepare for, and respond to coronavirus and to maintain documentation that supports that payments to reimburse Episcopal Homes of Minnesota and Affiliates were for healthcare- related expenses attributable to coronavirus or lost revenues. Criteria: 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. Per the terms and conditions of the Provider Relief Fund, all records pertaining to expenditures under the Provider Relief Fund are required to be maintained for three years from the date of the final expenditure. Context: Episcopal Homes of Minnesota and Affiliates were unable to provide invoice support for 7 of 40 disbursements tested. The seven disbursements without supporting documentation were all for purchases made with a credit card. The credit card vendor used to maintain the supporting receipt documentation provides access to supporting invoices for only one year. The invoices selected in the disbursement testing were older than one year, so the credit card vendor was unable to provide copies of the related invoices. Cause: The credit card vendor archives all detailed credit card invoices over one year old, and Episcopal Homes of Minnesota and Affiliates did not maintain receipts for credit card purchases internally. Effect: Auditor was unable to test 7 of 40 disbursements to supporting invoices. As a result, Episcopal Homes of Minnesota and Affiliates was not in compliance with the terms and conditions of the Provider Relief Fund regarding maintaining records to support Provider Relief Fund expenditures. With Episcopal Homes of Minnesota and Affiliates reporting additional unreimbursed COVID expenditures and lost revenues, no funds were estimated to be due back to the Provider Relief Fund. Recommendation: We recommend management review all credit card disbursements for supporting invoices and consider saving invoices internally in addition to uploading them to the credit card vendor so records older than one year old are maintained. View of Responsible Officials: Management agrees with the finding and recommendation and will review procedures to ensure supporting receipts for credit card disbursements are able to be accessed and maintained for longer than one year.