Audit 355856

COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342). The Authority is required to prepare and submit Period 2 and 3 provider relief fund reports to the U.S. Department of Health and Human Services. These reports are to be prepared using accurate financial information and submitted by the deadline established. Condition: The Authority excluded revenue from multiple sources that it did not own for the entire period of availability in the lost revenue calculation to create a more accurate comparison, which is not allowed under option 1. Questioned Costs: None. Context: The Period 2 and 3 provider relief funding was tested. The Authority selected option 1 to report lost revenues based on quarterly actual amounts. Errors in the calculation of patient service revenue for the quarters reported were identified. Effect: Errors were made in reporting quarterly total revenue/net charges for patient care for each year, 2019, 2020, and 2021. Lost revenue was not accurately reported under option 1. However, the Authority utilized allowable costs for Period 2 and 3 funding received, so that no lost revenues were utilized as a basis for the funding received, and as such, there are no questioned costs. Cause: The Authority did not follow the criteria of option 1 when calculating patient service revenue. Identification as a repeat finding, if applicable: Repeat finding. See finding 2021-001. 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: See attached corrective action plan for the Authority’s response to the finding.

COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342). The Authority is required to prepare and submit Period 2 and 3 provider relief fund reports to the U.S. Department of Health and Human Services. These reports are to be prepared using accurate financial information and submitted by the deadline established. Condition: The Authority excluded revenue from multiple sources that it did not own for the entire period of availability in the lost revenue calculation to create a more accurate comparison, which is not allowed under option 1. Questioned Costs: None. Context: The Period 2 and 3 provider relief funding was tested. The Authority selected option 1 to report lost revenues based on quarterly actual amounts. Errors in the calculation of patient service revenue for the quarters reported were identified. Effect: Errors were made in reporting quarterly total revenue/net charges for patient care for each year, 2019, 2020, and 2021. Lost revenue was not accurately reported under option 1. However, the Authority utilized allowable costs for Period 2 and 3 funding received, so that no lost revenues were utilized as a basis for the funding received, and as such, there are no questioned costs. Cause: The Authority did not follow the criteria of option 1 when calculating patient service revenue. Identification as a repeat finding, if applicable: Repeat finding. See finding 2021-001. 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: See attached corrective action plan for the Authority’s response to the finding.