BAKER COUNTY HEALTH SERVICES, INC.

2021-002 ? Compliance Finding Federal agency: U.S. Department of Health and Human Services (HHS) Federal program title: COVID-19 Provider Relief Fund (PRF) ? Period 1 Assistance Listing No.: 93.498 Criteria: Provider Relief 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 expenses or lost revenues that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition: Medical Services reported duplicate expenses within the HHS Health Resources and Services Administration (HRSA) Reporting Portal Period 1 submission. Cause: Although Medical Services 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: Medical Services reported expenses within the HHS HRSA Reporting Portal Period 1 submission which were not allowed based on the terms and conditions of the award. Questioned costs: $44,360 of duplicate expenditures were improperly included in the Period 1 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 1 reporting submission included $143,320 of unreimbursed expenses attributable to coronavirus and Medical Services has excess lost revenues that were not included with the Period 1 submission that they believe would offset the issue identified above. Recommendations: We recommend Medical Services design and implement controls, including levels of review, to ensure qualifying expenses submitted are in accordance with the HHS guidelines. Views of responsible officials of the auditee: See management?s corrective action plan.

In agreement with the Auditor's recommendation, we will continue to refine our processes to ensure costs reported are correct for future reporting periods. Management believes it has additional Coronavirus related expenses and lost revenues that could have been reported to cover the identified questioned costs.