Provider Relief Fund Recipients May Require Single Audit
The Provider Relief Fund is a $175 billion allocation from the CARES Act to the Department of Health and Human Services (HHS) intended to provide relief to healthcare providers. The HHS is distributing funds at their discretion to cover certain expenses and lost revenues incurred as a result of COVID-19 (read our eligibility guidance here).
On July 22, 2020, the HHS updated their FAQs to include guidance around single audit requirements stating that “General and Targeted Distribution payments and Uninsured Testing and Treatment reimbursement payments are required to be included in determining if a recipient” of Provider Relief Funds requires a single audit. Further clarification is anticipated later in the summer or early fall, but practitioners can prepare now by understanding what a single audit is and how to act if required.
What is a single audit?
- A single audit is an independent audit of an organization’s financial statements, program expenditures, compliance with federal requirements, and internal controls over compliance.
- A single audit is required for non-federal entities that expend $750,000 or more of federal awards during their fiscal year.
- A single audit can be beneficial for an organization as it streamlines the audit process for recipients of multiple awards, as one audit is conducted in lieu of multiple audits for each individual loan or grant received.
How Aprio can help.
Aprio’s Assurance and Audit advisors are ready and available to consult on your single audit requirements. Our team offers specialized and personalized expertise, creating a smoother stress-free audit experience that allows you to keep your eye on the ball.
Aprio is continuously monitoring new guidance from the Treasury and IRS, HHS, and AICPA to ensure we have the latest information when advising our clients. If you are concerned about your obligation to complete a single audit after receiving funds through the Provider Relief Fund program, please reach out to talk with one of our advisors.