Audit 301134

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). 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 four 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 two provider relief fund reports filed by the Organization, testing the Provider Relief Fund report for period four and associated lost revenue calculation for KVC hospital entity (TIN 271672159), it was determined the lost revenues were reported and calculated incorrectly. The Organization did not properly input certain information into the lost revenue calculation resulting in an under-reporting of lost revenues within the quarter reported. Effect – Lost revenue was not accurately calculated or reported. This error in reporting did not lead to a change in the amount of lost revenues needed to exceed funding received. Cause – The inputs in the report were not reviewed at a precise or sensitive enough level that could detect a misstatement. Identification as a Repeat Finding – Yes, see finding 2022-001. Recommendation – Management should evaluate the precision of the controls to ensure that sufficiently detailed review is occurring to identify, prevent or detect an input misstatement. 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). 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 four 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 two provider relief fund reports filed by the Organization, testing the Provider Relief Fund report for period four and associated lost revenue calculation for KVC hospital entity (TIN 271672159), it was determined the lost revenues were reported and calculated incorrectly. The Organization did not properly input certain information into the lost revenue calculation resulting in an under-reporting of lost revenues within the quarter reported. Effect – Lost revenue was not accurately calculated or reported. This error in reporting did not lead to a change in the amount of lost revenues needed to exceed funding received. Cause – The inputs in the report were not reviewed at a precise or sensitive enough level that could detect a misstatement. Identification as a Repeat Finding – Yes, see finding 2022-001. Recommendation – Management should evaluate the precision of the controls to ensure that sufficiently detailed review is occurring to identify, prevent or detect an input misstatement. View of Responsible Official and Planned Corrective Actions – The Organization agrees with this finding. See separate auditee documentation for planned corrective action.