HOSPITAL AUTHORITY OF CANDLER COUNTY

Criteria: Provider Relied Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act and are to be used to prevent, prepare for and respond to coronavirus. The funds shall reimburse the recipient only for expenses or lost revenues that are attributable to coronavirus. The funds may not be used to reimburse from other sources or that other sources are obligated to reimburse. Condition: The Authority reported duplicate expenses within the HHS Health Resources and Services Administration (HRSA) Reporting Portal Period 4 submission. Cause: Although the Authority has a process in place to identify and report allowable expenses, an appropriate review process was not in place to detect and correct any duplicate expenditures. Effect: The Authority reported expenses within the HHS HRSA Reporting Portal Period 4 submission which were not allowed based on the terms and conditions of the award. Questioned Costs: $205,670 of duplicate expenses were improperly included in Period 4 reporting submission. Context: Upon testing the compliance requirements of this program, it was determined that certain expenditure items were reported twice and therefore, not in compliance with guidance provided by HHS. However, the Period 4 reporting submission included $440,399 of unreimbursed expenses attributable to coronavirus and $777,380 of unused lost revenues that the Authority believe could offset the issue identified above. Recommendation: We recommend the Authority design and implement controls, including levels of review, to ensure qualifying expenses submitted are in accordance with the HHS guidelines. Views of Responsible Officials and Planned Corrective Actions: See management?s corrective action plan.