The U.S. Department of Health and Human Services Health Resources and Services Administration (“HRSA”) has renewed efforts to contact providers that received Provider Relief Funds (“PRF”) and American Rescue Plan Rural Distribution Funds (“ARP Rural”) regarding delinquency in required audit reporting.
As part of the conditions of funding, any organization that received or spent a total of $750,000 or more in federal funds, including PRF and ARP Rural, in their fiscal year would be subject to the Single Audit requirements, as outlined in the regulations at 45 Code of Federal Regulations (CFR) § 75 Subpart F. This requirement applied to both not-for-profit and for-profit providers. As an example, a provider with a traditional calendar-year end who received over $750,000 in PRF and ARP Rural between January 1, 2021, to December 31, 2021, for Periods 3 and 4 would have been subject to this audit requirement for the year ended December 31, 2022. We understand that companies who received over $750,000 in PRF and ARP Rural funding between January 1, 2022, and June 30, 2022, which would be Period 5, and did not file their Single Audit by 9/30/2024, have been receiving notices from HRSA.
For entities that have received a notice, Withum’s Healthcare Services Team has deep expertise in executing these audits. Our team knows how to work with healthcare providers who have never undergone an audit to navigate the hurdles of a first-time audit process.
Authors: James Trubenbach-Byrne, CPA | [email protected] and Michael George, CPA, Partner and Practice Co-Leader, Healthcare Services | [email protected]
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