Audit 300726

Criteria: Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No 115-139, 134 Stat. 622 and 623) Condition: The Hospital’s portal reporting submission included errors. Questioned Costs: None Context: The Hospital chose to report under the alternative reporting methodology (option iii). Under this option, the Hospital submitted a memo describing its reasonable method of estimated revenues. The methodology described in the memo does not agree with the amounts the Hospital reported in the portal. The Hospital’s calculated lost revenue under its alternative reporting methodology was approximately $420,000 overstated for 2020 quarter 1 and approximately $537,000 understated for 2020 quarter 2, which led to actual total lost revenue being approximately $117,000 more than the amount the Hospital reported in the PRF portal. Effect: The report submitted in the PRF portal does not agree to the Hospital’s alternative reporting methodology, and quarterly lost revenues were improperly reported. Cause: The Hospital’s internal controls were not adequate to detect these reporting errors. Identification as a Repeat Finding: 2021-001. Recommendation: We recommend implementing controls to ensure amounts reported are accurate, complete and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding and recommendation; however, the errors did not result in materially different lost revenues claimed.

Criteria: Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No 115-139, 134 Stat. 622 and 623) Condition: The Hospital’s portal reporting submission included errors. Questioned Costs: None Context: The Hospital chose to report under the alternative reporting methodology (option iii). Under this option, the Hospital submitted a memo describing its reasonable method of estimated revenues. The methodology described in the memo does not agree with the amounts the Hospital reported in the portal. The Hospital’s calculated lost revenue under its alternative reporting methodology was approximately $420,000 overstated for 2020 quarter 1 and approximately $537,000 understated for 2020 quarter 2, which led to actual total lost revenue being approximately $117,000 more than the amount the Hospital reported in the PRF portal. Effect: The report submitted in the PRF portal does not agree to the Hospital’s alternative reporting methodology, and quarterly lost revenues were improperly reported. Cause: The Hospital’s internal controls were not adequate to detect these reporting errors. Identification as a Repeat Finding: 2021-001. Recommendation: We recommend implementing controls to ensure amounts reported are accurate, complete and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding and recommendation; however, the errors did not result in materially different lost revenues claimed.