Audit 3033

Federal Agency: Department of Health and Human Services Assistance Listing Number: 93.498 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Significant Deficiency and Compliance Finding Under the terms and conditions of the award, the recipient certifies it will report actual net patient revenues for the periods reported in its reporting of actual net patient revenues for its calculation of lost revenues due to coronavirus. Condition: The Hospital had adjustments to their fiscal year 2021 financial statements that were not reflected in the lost revenue calculation. As a result, revenue was not accurately reported for the third quarter of 2021 on its Period 4 Provider Relief Fund (PRF) report. Context: This finding appears to be an isolated problem. Cause: The Hospital prepared its lost revenue calculations using system reports which were not reflective of necessary adjustments to revenue, which were later posted to its fiscal year 2022 financial statements. Effect: The actual revenues for the third quarter of calendar year 2021 did not reflect the correct amounts to be used in its lost revenue calculations. If revenues were reported correctly, the Hospital would still have sufficient lost revenues to cover all of the PRF amounts received. Therefore, there is no effect on the Hospital’s retention of the PRFs. Recommendation: We recommend the Hospital correct its lost revenue calculation in subsequent period reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions: There was a shortcoming in the workpapers or lack of sufficient workpapers for the Period 4 PRF reporting. Procedures have been enhanced to ensure proper support for all reported values for PRF as well as any other reporting. No other PRFs have been received by the Hospital and no further PRF reporting is anticipated.

Federal Agency: Department of Health and Human Services Assistance Listing Number: 93.498 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Significant Deficiency and Compliance Finding Under the terms and conditions of the award, the recipient certifies it will report actual net patient revenues for the periods reported in its reporting of actual net patient revenues for its calculation of lost revenues due to coronavirus. Condition: The Hospital had adjustments to their fiscal year 2021 financial statements that were not reflected in the lost revenue calculation. As a result, revenue was not accurately reported for the third quarter of 2021 on its Period 4 Provider Relief Fund (PRF) report. Context: This finding appears to be an isolated problem. Cause: The Hospital prepared its lost revenue calculations using system reports which were not reflective of necessary adjustments to revenue, which were later posted to its fiscal year 2022 financial statements. Effect: The actual revenues for the third quarter of calendar year 2021 did not reflect the correct amounts to be used in its lost revenue calculations. If revenues were reported correctly, the Hospital would still have sufficient lost revenues to cover all of the PRF amounts received. Therefore, there is no effect on the Hospital’s retention of the PRFs. Recommendation: We recommend the Hospital correct its lost revenue calculation in subsequent period reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions: There was a shortcoming in the workpapers or lack of sufficient workpapers for the Period 4 PRF reporting. Procedures have been enhanced to ensure proper support for all reported values for PRF as well as any other reporting. No other PRFs have been received by the Hospital and no further PRF reporting is anticipated.