Lawrence Memorial Health Foundation Inc

COVID-19 Provider Relief Fund Assistance Listing No. 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement - Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Cost Principles (Pub. L. No. 116- 136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). The Foundation is required to prepare and submit period one provider relief fund report to the U.S. Department of Health and Human Services. This report is to be prepared using accurate financial information and submitted by the deadline established. The funds cannot be used for expenses reimbursed or obligated to be reimbursed by other sources. Condition ? The Organization reported COVID-19-related expenditures within the HHS Provider Relief Fund (PRF) portal that did not have supporting documentation showing expenditures were related to the prevention, preparation or response to COVID-19, including allocated salaries and related fringe benefits and utility payments. The expenditures were also not adjusted for any future Medicare or Medicaid reimbursement. Questioned Costs ? Unknown Context ? Management made certain estimates related to allowable program costs that did not have adequate underlying supporting documentation to determine correct allocation of claimed program expenditures and what portion, if any, was reimbursed by Medicare or Medicaid reimbursements. These included a 30% estimate of time spent by certain employees on COVID-related time and utility costs. Effect ? The Organization submitted expenses under the PRF program that did not have support that they are reasonably related to the prevention, preparation or response to COVID-19 that were not reimbursed by another source. Cause ? Internal controls and review processes were not in place to ensure support was retained related to these expenditures. Identification as a Repeat Finding ? Not applicable Recommendation ? Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using estimates with supporting documentation retained. View of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding that additional supporting documentation should be retained. The Organization has treated many COVID positive patients since the pandemic began and incurred significant incremental costs to treat these patients. Management has worked very hard to account for the use of the funds and believes they have made a fair accounting to HRSA. Management will monitor HHS PRF guidance and implement controls to ensure all reports based on time expended are supported by accurate, complete, and reviewed time-studies and retain other documentation necessary to comply with the terms and conditions related to the use of funds.