Audit 24287

2022-002 Provider Relief Fund Reporting of Lost Revenue Federal Agency Department of Health and Human Services CFDA 93.498 ? Provider Relief Fund and American Rescue Plan Rural Distribution Award Numbers Not applicable Criteria [ X ] Compliance Finding [ ] Significant Deficiency [ X ] Material Weakness Under the terms and conditions of the award, the recipient certifies it will report actual net patient revenues for the periods reported on in its reporting of actual net patient revenues for its calculation of lost revenues due to coronavirus. Condition Actual net patient service revenues were not used when preparing the Hospital?s calculation of lost revenue. Context This finding appears to be an isolated problem. Cause The Hospital prepared its lost revenue calculations using subsequent cash receipts to estimate net patient service revenues instead of using actual net patient service revenues. Effect The actual net patient service revenues for 2022 did not reflect the correct amounts to be used in its lost revenue calculations. If actual net patient service revenues had been used, the Hospital would still have sufficient healthcare-related expenses attributable to coronavirus and lost revenues to use all of the Provider Relief Fund amounts received. Therefore, there is no effect on the Hospital?s retention of the Provider Relief Funds. Recommendation We recommend the Hospital?s management correct its lost revenue calculation in subsequent period reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions The Hospital will ensure the actual net patient service revenues will be calculated accurately and any adjusting entries will be captured prior to the final calculation being reported.

2022-002 Provider Relief Fund Reporting of Lost Revenue Federal Agency Department of Health and Human Services CFDA 93.498 ? Provider Relief Fund and American Rescue Plan Rural Distribution Award Numbers Not applicable Criteria [ X ] Compliance Finding [ ] Significant Deficiency [ X ] Material Weakness Under the terms and conditions of the award, the recipient certifies it will report actual net patient revenues for the periods reported on in its reporting of actual net patient revenues for its calculation of lost revenues due to coronavirus. Condition Actual net patient service revenues were not used when preparing the Hospital?s calculation of lost revenue. Context This finding appears to be an isolated problem. Cause The Hospital prepared its lost revenue calculations using subsequent cash receipts to estimate net patient service revenues instead of using actual net patient service revenues. Effect The actual net patient service revenues for 2022 did not reflect the correct amounts to be used in its lost revenue calculations. If actual net patient service revenues had been used, the Hospital would still have sufficient healthcare-related expenses attributable to coronavirus and lost revenues to use all of the Provider Relief Fund amounts received. Therefore, there is no effect on the Hospital?s retention of the Provider Relief Funds. Recommendation We recommend the Hospital?s management correct its lost revenue calculation in subsequent period reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions The Hospital will ensure the actual net patient service revenues will be calculated accurately and any adjusting entries will be captured prior to the final calculation being reported.