Audit 28842

Finding 2022-002 Previously reported as finding 2021-002 Program: U.S. Department of Health and Human Services (HHS), COVID-19: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, Assistance Listing No. 93.498 Criteria: The Home is required to submit periodic Provider Relief Fund (PRF) reports to HHS. The reports require providers to account for and certify that eligible expenses and lost revenue are used to determine proper usage and recognition of funds. The current audit includes a report for the HHS designated Reporting Period 4. Condition: As part of our compliance testing, we reviewed the certified submission to the HHS portal for HHS Reporting Period 4. As a result of this review, we noted that one of the key line items, as designated by the Compliance Supplement, for `Other Provider Relief Fund Expenses? was inaccurately reported. Cause: The Home included expenses in the `Other Provider Relief Fund Expenses? line that were not incremental to COVID-19 in error. This was due to turnover in the key position responsible for establishment of internal control over compliance and submission of the reporting along with continuously evolving guidance related to completion of the PRF reporting. Effect: While the Home incurred more than sufficient lost revenues to support that the Home?s funds were fully utilized, the Period 4 report included expenses that were not incremental to COVID-19 in error, which resulted in reporting the use of the funds to reimburse those expenses rather than the actual usage of the funds, which was to fund lost revenue. Recommendation: We recommend that the Home maintain documentation that details it incurred enough lost revenue to continue to qualify for the full amount of the funding, even though reporting elements in the Period 4 indicated the funding was used to cover expenses. Views of Responsible Official of the Auditee: Due to the turnover in the Finance department, there was a miscommunication regarding how the funds from PRF reporting period 4 were supposed to be reported. The funds were reported as being expensed to personnel salaries when they should have been allocated to lost revenues. The amount of eligible lost revenue substantially exceeds the amount of provider relief funding received. No funds were used in any inappropriate manner.

Finding 2022-002 Previously reported as finding 2021-002 Program: U.S. Department of Health and Human Services (HHS), COVID-19: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, Assistance Listing No. 93.498 Criteria: The Home is required to submit periodic Provider Relief Fund (PRF) reports to HHS. The reports require providers to account for and certify that eligible expenses and lost revenue are used to determine proper usage and recognition of funds. The current audit includes a report for the HHS designated Reporting Period 4. Condition: As part of our compliance testing, we reviewed the certified submission to the HHS portal for HHS Reporting Period 4. As a result of this review, we noted that one of the key line items, as designated by the Compliance Supplement, for `Other Provider Relief Fund Expenses? was inaccurately reported. Cause: The Home included expenses in the `Other Provider Relief Fund Expenses? line that were not incremental to COVID-19 in error. This was due to turnover in the key position responsible for establishment of internal control over compliance and submission of the reporting along with continuously evolving guidance related to completion of the PRF reporting. Effect: While the Home incurred more than sufficient lost revenues to support that the Home?s funds were fully utilized, the Period 4 report included expenses that were not incremental to COVID-19 in error, which resulted in reporting the use of the funds to reimburse those expenses rather than the actual usage of the funds, which was to fund lost revenue. Recommendation: We recommend that the Home maintain documentation that details it incurred enough lost revenue to continue to qualify for the full amount of the funding, even though reporting elements in the Period 4 indicated the funding was used to cover expenses. Views of Responsible Official of the Auditee: Due to the turnover in the Finance department, there was a miscommunication regarding how the funds from PRF reporting period 4 were supposed to be reported. The funds were reported as being expensed to personnel salaries when they should have been allocated to lost revenues. The amount of eligible lost revenue substantially exceeds the amount of provider relief funding received. No funds were used in any inappropriate manner.