Audit 317591

COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) Condition: The District is required to prepare and submit period one provider relief fund report to the U.S. Department of Health and Human Services. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned costs: $60,637 Context: The period one provider relief fund report was tested. The District selected option 1 to report lost revenues based on actual 2020 and 2021 quarterly gross patient service revenue by department in comparison to actual 2019 gross patient service revenue. An error in the calculation of the patient service revenue for the quarters reported was identified. Effect: Errors were made in reporting quarterly total revenue/net charges from patient care. Lost revenue was not accurately reported. Cause: Internal controls over compliance were not in place to ensure the District properly calculated lost revenue. Identification as a repeat finding: Not a repeat finding. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Views of responsible officials and planned corrective actions: Management does not dispute the finding. The district will work to develop policies over financial reporting for future periods for PRF reporting and auditing. The district will perform detailed analysis of the reporting requirements in accordance with the guidelines set forth by HRSA. The hospital CEO, Cecil Gaither, will oversee this to ensure that this is accomplished. The district will also provide its’ consultants any information to be submitted to HRSA for accuracy. The district has already begun implementing the new procedures and is confident that all future submissions will be correct. The District had enough expenditures for Period 1 funding received to cover any disqualified lost revenues that were utilized as a basis for the funds received. The corrective action plan will be implemented by May 31, 2024.

COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) Condition: The District is required to prepare and submit period one provider relief fund report to the U.S. Department of Health and Human Services. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned costs: $60,637 Context: The period one provider relief fund report was tested. The District selected option 1 to report lost revenues based on actual 2020 and 2021 quarterly gross patient service revenue by department in comparison to actual 2019 gross patient service revenue. An error in the calculation of the patient service revenue for the quarters reported was identified. Effect: Errors were made in reporting quarterly total revenue/net charges from patient care. Lost revenue was not accurately reported. Cause: Internal controls over compliance were not in place to ensure the District properly calculated lost revenue. Identification as a repeat finding: Not a repeat finding. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Views of responsible officials and planned corrective actions: Management does not dispute the finding. The district will work to develop policies over financial reporting for future periods for PRF reporting and auditing. The district will perform detailed analysis of the reporting requirements in accordance with the guidelines set forth by HRSA. The hospital CEO, Cecil Gaither, will oversee this to ensure that this is accomplished. The district will also provide its’ consultants any information to be submitted to HRSA for accuracy. The district has already begun implementing the new procedures and is confident that all future submissions will be correct. The District had enough expenditures for Period 1 funding received to cover any disqualified lost revenues that were utilized as a basis for the funds received. The corrective action plan will be implemented by May 31, 2024.