Audit 331524

2023-001 Provider Relief Fund Reporting of Lost Revenue Federal Agency Department of Health and Human Services Federal Assistance Listing Number 93.498 – Provider Relief Fund and American Rescue Plan Rural Distribution Criteria [ X ] Compliance Finding [ ] Significant Deficiency [ X ] Material Weakness Under the terms and conditions of the award, the recipient certifies it will report actual net patient service revenues for the periods reported on in its reporting of actual net patient service revenues for its calculation of lost revenues due to coronavirus. Condition Context Actual patient service revenues did not agree to reported patient service revenues. This finding appears to be an isolated problem. Cause The 2022 financial audit contained significant auditor detected journal entries. The District reported on lost revenues before the audit was complete. Effect The actual patient service revenues for 2021 and 2022 did not reflect the correct amounts to be used in its lost revenue calculations. If accurate revenues had been reported, the District would still have sufficient healthcare-related expenses attributable to coronavirus and lost revenues to use all of the Provider Relief Fund amounts received. Therefore, there is no effect on the District’s retention of the Provider Relief Funds. Recommendation We recommend the District’s management correct its lost revenue calculation for any future reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions Management believes that the amount of Provider Relief Fund funding received by Weston County is supported by pandemic-related lost revenues as well as incremental expenses. Management intends to perform an internal recalculation the information included on the PRF reports. Those recalculated figures will be reconciled to the respective internal and audited financial statements. This action will be accomplished in conjunction with a top-to-bottom review of the grants accounting, reporting and internal control environment, to be initiated in the second half of calendar year 2025.

2023-001 Provider Relief Fund Reporting of Lost Revenue Federal Agency Department of Health and Human Services Federal Assistance Listing Number 93.498 – Provider Relief Fund and American Rescue Plan Rural Distribution Criteria [ X ] Compliance Finding [ ] Significant Deficiency [ X ] Material Weakness Under the terms and conditions of the award, the recipient certifies it will report actual net patient service revenues for the periods reported on in its reporting of actual net patient service revenues for its calculation of lost revenues due to coronavirus. Condition Context Actual patient service revenues did not agree to reported patient service revenues. This finding appears to be an isolated problem. Cause The 2022 financial audit contained significant auditor detected journal entries. The District reported on lost revenues before the audit was complete. Effect The actual patient service revenues for 2021 and 2022 did not reflect the correct amounts to be used in its lost revenue calculations. If accurate revenues had been reported, the District would still have sufficient healthcare-related expenses attributable to coronavirus and lost revenues to use all of the Provider Relief Fund amounts received. Therefore, there is no effect on the District’s retention of the Provider Relief Funds. Recommendation We recommend the District’s management correct its lost revenue calculation for any future reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions Management believes that the amount of Provider Relief Fund funding received by Weston County is supported by pandemic-related lost revenues as well as incremental expenses. Management intends to perform an internal recalculation the information included on the PRF reports. Those recalculated figures will be reconciled to the respective internal and audited financial statements. This action will be accomplished in conjunction with a top-to-bottom review of the grants accounting, reporting and internal control environment, to be initiated in the second half of calendar year 2025.