KEARNEY COUNTY HEALTH SERVICESLocal Government

Federal Program - Federal Financial Assistance 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 claimed prepaid service 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 claimed prepaid service 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 Federal Financial Assistance CFDA #93.498 amounted to $63,285 and were calculated using total service cost paid that applied to coverage outside of the period of availability. Context - The PRF and HRSA guidance indicate the funds received may only be used for healthcare related expenses that are attributable to the coronavirus incurred in the period of availability. Health Services did not receive services from the service cost 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 and will continue to refine processes to more diligently review capital items to ensure only those costs incurred during the eligibility period are included in future reporting.

Federal Program - Federal Financial Assistance 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 did not reduce the expenses by the amounts paid by other sources. 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 claimed expenses paid by other sources. 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 Federal Financial Assistance CFDA #93.498 amounted to $78,510 and were calculated using total cost paid that were reimbursed by other sources. Context - The PRF and HRSA guidance indicate the funds received may only be used for healthcare related expenses that are attributable to the coronavirus not reimbursed from other sources. Health Services did not remove the costs reimbursed by other sources from 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 and will continue to refine processes to more diligently review allowable costs to ensure only those costs not reimbursed by other sources are included in future reporting.