Audit 27930

U.S. Department of Health and Human Services (HHS) Direct Program: COVID-19 Provider Relief Fund - 93.498 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 Provider Relief Fund (PRF) was established in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) to reimburse, through grants or other mechanisms, eligible health care providers for increased expenses or lost revenue attributable to Coronavirus Disease (COVID-19). Entities that received more than $10,000 (either one time or in the aggregate) are required to report the uses of their funds, including the lost revenue reimbursement and documentation of how the lost revenue was calculated. In addition, management is responsible for establishing and maintaining effective internal control over costs directly and indirectly charged to federal awards. Condition - The Organization is required to prepare and submit period two and three of Provider Relief Fund reporting to HHS. The required reporting is to be prepared using accurate financial information. The Organization incorrectly calculated their COVID-19-related lost revenues for the required reporting. Questioned Costs ? None Context ? Out of a population of three provider relief fund reports filed by the Organization, testing the Provider Relief Fund report for period two and associated lost revenue calculation for KVC hsopital entity (TIN 271672159), it was determined the lost revenues for the third and fourth quarters of 2021 were reported and calculated incorrectly. The Organization did not properly include correct amounts within the lost revenue calculations resulting in a material under-reporting of lost revenues within the quarters reported. Effect ? Lost revenue was not accurately calculated or reported. Cause ? Internal Controls were not in place to ensure the Organization's calculation was properly reviewed for the use of correct formulas or data input. Identification as a Repeat Finding ? Not applicable. Recommendation ? The Organization should continue to improve its understanding of the guidance related to this type of reporting and implement additional controls over future reporting periods to help ensure guidance is followed. View of Responsible Official and Planned Corrective Actions ? The Organization agrees with this finding. See separate auditee documentation for planned corrective action.

U.S. Department of Health and Human Services (HHS) Direct Program: COVID-19 Provider Relief Fund - 93.498 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 Provider Relief Fund (PRF) was established in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) to reimburse, through grants or other mechanisms, eligible health care providers for increased expenses or lost revenue attributable to Coronavirus Disease (COVID-19). Entities that received more than $10,000 (either one time or in the aggregate) are required to report the uses of their funds, including the lost revenue reimbursement and documentation of how the lost revenue was calculated. In addition, management is responsible for establishing and maintaining effective internal control over costs directly and indirectly charged to federal awards. Condition - The Organization is required to prepare and submit period two and three of Provider Relief Fund reporting to HHS. The required reporting is to be prepared using accurate financial information. The Organization incorrectly calculated their COVID-19-related lost revenues for the required reporting. Questioned Costs ? None Context ? Out of a population of three provider relief fund reports filed by the Organization, testing the Provider Relief Fund report for period two and associated lost revenue calculation for KVC hsopital entity (TIN 271672159), it was determined the lost revenues for the third and fourth quarters of 2021 were reported and calculated incorrectly. The Organization did not properly include correct amounts within the lost revenue calculations resulting in a material under-reporting of lost revenues within the quarters reported. Effect ? Lost revenue was not accurately calculated or reported. Cause ? Internal Controls were not in place to ensure the Organization's calculation was properly reviewed for the use of correct formulas or data input. Identification as a Repeat Finding ? Not applicable. Recommendation ? The Organization should continue to improve its understanding of the guidance related to this type of reporting and implement additional controls over future reporting periods to help ensure guidance is followed. View of Responsible Official and Planned Corrective Actions ? The Organization agrees with this finding. See separate auditee documentation for planned corrective action.