Audit 30286

Assistance Listing Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19 - Provider Relief Fund and American Rescue Plan Rural Distribution 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 ? Yes, 2021-001 Criteria - - The Organization 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 the Provider Relief Fund requires recipients that apply PRF payments toward lost revenue to use one of the following options for calculating lost revenue: Option i: The difference between actual patient care revenue Option ii: The difference between budgeted (prior to March 27, 2020) and actual patient care revenue Option iii: The amount calculated by any reasonable method of estimating revenue Condition - The Organization does not have a review process in place related to the required reporting submissions to the U.S. Department of Health and Human Services for the PRF program. The Organization selected Option iii for reporting lost revenues, however the Organization had mathematical errors in the calculation of lost revenue for the second quarter of 2021 and second quarter of 2022 (the lost revenues by quarter did not sum in total by quarter appropriately).. Questioned Cost ? None Identification of How Questioned Costs Were Computed ? N/A Context - There was no independent review completed on the reporting submission to evaluate the completeness and accuracy of the calculation of lost revenue. The lost revenue reported in the period four portal submission was understated by approximately $450,000 as a result of the mathematical error identified. Cause and Effect - The lack of an independent review of the reporting submission resulted in a reporting error and could also result in an increased risk of incomplete or inaccurate information reported to the granting agency. Recommendation - The Organization should implement a process to ensure an independent review of the reporting submission is completed prior to finalization. Views of Responsible Officials and Corrective Action Plan - Management agrees with the finding and will implement a process to ensure an independent review of the reporting submission is completed. The lost revenue reported in the period four portal submission was understated by approximately $450,000 as a result of the mathematical error identified. The Organization also had excess lost revenue that did not have to be utilized to justify recognition of the funding received, therefore this error had no impact on meeting the conditions of the funding received.

Assistance Listing Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19 - Provider Relief Fund and American Rescue Plan Rural Distribution 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 ? Yes, 2021-001 Criteria - - The Organization 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 the Provider Relief Fund requires recipients that apply PRF payments toward lost revenue to use one of the following options for calculating lost revenue: Option i: The difference between actual patient care revenue Option ii: The difference between budgeted (prior to March 27, 2020) and actual patient care revenue Option iii: The amount calculated by any reasonable method of estimating revenue Condition - The Organization does not have a review process in place related to the required reporting submissions to the U.S. Department of Health and Human Services for the PRF program. The Organization selected Option iii for reporting lost revenues, however the Organization had mathematical errors in the calculation of lost revenue for the second quarter of 2021 and second quarter of 2022 (the lost revenues by quarter did not sum in total by quarter appropriately).. Questioned Cost ? None Identification of How Questioned Costs Were Computed ? N/A Context - There was no independent review completed on the reporting submission to evaluate the completeness and accuracy of the calculation of lost revenue. The lost revenue reported in the period four portal submission was understated by approximately $450,000 as a result of the mathematical error identified. Cause and Effect - The lack of an independent review of the reporting submission resulted in a reporting error and could also result in an increased risk of incomplete or inaccurate information reported to the granting agency. Recommendation - The Organization should implement a process to ensure an independent review of the reporting submission is completed prior to finalization. Views of Responsible Officials and Corrective Action Plan - Management agrees with the finding and will implement a process to ensure an independent review of the reporting submission is completed. The lost revenue reported in the period four portal submission was understated by approximately $450,000 as a result of the mathematical error identified. The Organization also had excess lost revenue that did not have to be utilized to justify recognition of the funding received, therefore this error had no impact on meeting the conditions of the funding received.