Assistance Listing Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19 - Provider Relief Fund
Federal Award Identification Number and Year - N/A
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - No
Criteria - The Post Payment Notice of Reporting Requirements for Provider Relief Fund General and Target Distributions (the "Notice"), dated June 11, 2021, requires that unreimbursed COVID-19 expenses reported within the HHS reporting portal should be properly supported and reviewed for accuracy, and the lost revenue methodology utilized by the System should be reported accurately within the HHS portal submission.
Condition - The information entered into the period one HHS portal submission for Galion Community Hospital was not adequately supported or reviewed in accordance with the terms and conditions of the PRF funding and the Notice.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - N/A
Context - Expenses and lost revenue entered into the period one portal submission for Galion Community Hospital were not adequately reviewed for accuracy and allowability prior to completion of the period one portal submission. After the report was submitted to HHS, the System decided to utilize lost revenues only to justify the expenditures reported on the schedule of expenditures of federal awards.
Cause and Effect - The System did not review expenses and lost revenue compiled and reported within the period one portal submission for Galion Community Hospital, which resulted in expenses included in the report not being adequatly supported in accordance with the terms and conditions of the PRF funding and the Notice.
Recommendation - The System should review all instructions and FAQs released by the awarding agency and should perform adequate review of the information reported to ensure reporting requirements are completed in accordance with the required regulations.
Views of Responsible Officials and Corrective Action Plan - The System utilized lost revenue to support expenditures recognized on the Schedule. For future grant funds received, management will adequately review terms and conditions of the funding received and ensure allowable expense are properly supported and reviewed before completing the required reports.
Assistance Listing Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19 - Provider Relief Fund
Federal Award Identification Number and Year - N/A
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - No
Criteria - In accordance with 2 CFR 200.303, the System must establish and maintain effective internal controls over federal awards that provide reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
The reporting requirements for PRF targeted distributions required the recipient entity to report on the use of the funds.
Condition - The System received targeted distributions for Bucyrus Community Hospital. A period one portal submission was completed, but no allowable expenses or lost revenues were reported within the Bucyrus Community Hospital report. All allowable expenses and lost revenues were reported on the first period portal submission for Galion Community Hospital, another hospital of the Avita Health System.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Lost revenues related to the targeted distributions of $3,878,983 received by Bucyrus Community Hospital were reported within the Galion Community Hospital period 1 portal submission.
Context - Galion Community Hospital and Bucyrus Community Hospital received targeted distributions during period one. The allowable expenses and lost revenues related to the Galion Community Hospital targeted distributions were reported within the recipient entities portal submission, while there were no allowable expenses or lost revenues reported within the Bucyrus Community Hospital period one portal submission. The total lost revenue reported in the Galion Community Hospital period one portal submission was sufficient to cover all period one funding.
Cause and Effect - The System failed to review all reporting requirements, which caused the System to fail to report allowable expenses and lost revenues within the portal submission for the specific entity that received targeted PRF.
Recommendation - The System should adequately review all applicable reporting requirements for federal funding received.
Views of Responsible Officials and Planned Corrective Actions - The portal submission could not be modified by the time we identified the reporting issue. As such, no corrective report was completed, however management will implement procedures to ensure reporting requirements are adequately reviewed for all federal funding.
Assistance Listing Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19 - Provider Relief Fund
Federal Award Identification Number and Year - N/A
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - No
Criteria - The Post Payment Notice of Reporting Requirements for Provider Relief Fund General and Target Distributions (the "Notice"), dated June 11, 2021, requires that unreimbursed COVID-19 expenses reported within the HHS reporting portal should be properly supported and reviewed for accuracy, and the lost revenue methodology utilized by the System should be reported accurately within the HHS portal submission.
Condition - The information entered into the period one HHS portal submission for Galion Community Hospital was not adequately supported or reviewed in accordance with the terms and conditions of the PRF funding and the Notice.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - N/A
Context - Expenses and lost revenue entered into the period one portal submission for Galion Community Hospital were not adequately reviewed for accuracy and allowability prior to completion of the period one portal submission. After the report was submitted to HHS, the System decided to utilize lost revenues only to justify the expenditures reported on the schedule of expenditures of federal awards.
Cause and Effect - The System did not review expenses and lost revenue compiled and reported within the period one portal submission for Galion Community Hospital, which resulted in expenses included in the report not being adequatly supported in accordance with the terms and conditions of the PRF funding and the Notice.
Recommendation - The System should review all instructions and FAQs released by the awarding agency and should perform adequate review of the information reported to ensure reporting requirements are completed in accordance with the required regulations.
Views of Responsible Officials and Corrective Action Plan - The System utilized lost revenue to support expenditures recognized on the Schedule. For future grant funds received, management will adequately review terms and conditions of the funding received and ensure allowable expense are properly supported and reviewed before completing the required reports.
Assistance Listing Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19 - Provider Relief Fund
Federal Award Identification Number and Year - N/A
Pass-through Entity - N/A
Finding Type - Material weakness and material noncompliance with laws and regulations
Repeat Finding - No
Criteria - In accordance with 2 CFR 200.303, the System must establish and maintain effective internal controls over federal awards that provide reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
The reporting requirements for PRF targeted distributions required the recipient entity to report on the use of the funds.
Condition - The System received targeted distributions for Bucyrus Community Hospital. A period one portal submission was completed, but no allowable expenses or lost revenues were reported within the Bucyrus Community Hospital report. All allowable expenses and lost revenues were reported on the first period portal submission for Galion Community Hospital, another hospital of the Avita Health System.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - Lost revenues related to the targeted distributions of $3,878,983 received by Bucyrus Community Hospital were reported within the Galion Community Hospital period 1 portal submission.
Context - Galion Community Hospital and Bucyrus Community Hospital received targeted distributions during period one. The allowable expenses and lost revenues related to the Galion Community Hospital targeted distributions were reported within the recipient entities portal submission, while there were no allowable expenses or lost revenues reported within the Bucyrus Community Hospital period one portal submission. The total lost revenue reported in the Galion Community Hospital period one portal submission was sufficient to cover all period one funding.
Cause and Effect - The System failed to review all reporting requirements, which caused the System to fail to report allowable expenses and lost revenues within the portal submission for the specific entity that received targeted PRF.
Recommendation - The System should adequately review all applicable reporting requirements for federal funding received.
Views of Responsible Officials and Planned Corrective Actions - The portal submission could not be modified by the time we identified the reporting issue. As such, no corrective report was completed, however management will implement procedures to ensure reporting requirements are adequately reviewed for all federal funding.