Provider Relief Funds Subject to Single Audit

Thoughtware Alert Published: May 28, 2020
Healthcare COVID-19

Last week, the Health Resources and Services Administration (HRSA) announced the Provider Relief Fund and emergency grants to address mental and substance use disorders during COVID-19 will be subject to Single Audit requirements. The Provider Relief Fund’s objective is to provide relief funds to hospitals and other healthcare providers on the front lines of the coronavirus response. The funding helps to support healthcare-related expenses or lost revenue attributable to COVID-19 and help ensure uninsured Americans can get treatment for COVID-19. The second program provides mental and substance use disorder treatment, crisis counseling and other related supports for children and adults affected by COVID-19. Approximately 100 applications have been received and 60 will be awarded in fiscal year 2020. An estimated $110 million is expected to be distributed in grants. Click on the links above to obtain the CFDA number for the programs.  

In accordance with the provisions of 2 CFR 200, Subpart F – Audit Requirements, nonfederal entities that expend financial assistance of $750,000 or more in federal awards will have a single or program-specific audit for their fiscal year that include the periods the funds are expended. HRSA has indicated both programs are subject to Single Audit requirements. states that Subparts B, C, D and E of 2 CFR 200 are not applicable to the Provider Relief Fund. This adds additional questions of what requirements organizations must comply with for the program and what auditors will test as part of the Single Audit. Additional guidance on what qualifies as a healthcare-related expense attributable to COVID-19 or what qualifies as lost revenue has not been released.  

Please note that this information is current as of the date of publication, as legislation and guidance are constantly evolving. Reach out to your BKD Trusted Advisor™, submit the Contact Us form below or visit our COVID-19 Resource Center for current information.

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