Audit 359232

U.S. Department of Health and Human Services Federal Assistance Listing Number 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Reporting (45 CFR 75.342) The Corporation is required to prepare and submit period four 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. Condition: The Corporation incorrectly reported provider relief payments were applied to unreimbursed expenses attributable to COVID-19 instead of lost revenue in the HHS Provider Relief Fund (PRF) portal. Total expenditures reported had not been incurred by the Corporation. Cause: The Corporation’s internal controls were not adequate to detect errors in reporting lost revenue. Effect or Potential Effect: Expenses and lost revenues were improperly reported in the PRF portal. Questioned Costs: Unknown. Context: The Corporation inaccurately reported for period four $375,083 of Total Other PRF Expenses. Actual expenses incurred were $0. The Corporation should have reported all provider relief payments were applied against lost revenues. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend implementing controls to ensure amounts reported are accurate, complete and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding. This report was prepared by the Vice President of Accounting and reviewed and approved prior to submission by the Chief Financial Officer. The approval process is deemed to be adequate by management but failed in this case due to the preparer and approver committing the same misinterpretation and overlooking the accounting provided in the ‘Other PRF Summary’ section of the report. The preparer and approver will both apply a corrected understanding and perform a more thorough review of future PRF reports.

U.S. Department of Health and Human Services Federal Assistance Listing Number 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Reporting (45 CFR 75.342) The Corporation is required to prepare and submit period four 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. Condition: The Corporation incorrectly reported provider relief payments were applied to unreimbursed expenses attributable to COVID-19 instead of lost revenue in the HHS Provider Relief Fund (PRF) portal. Total expenditures reported had not been incurred by the Corporation. Cause: The Corporation’s internal controls were not adequate to detect errors in reporting lost revenue. Effect or Potential Effect: Expenses and lost revenues were improperly reported in the PRF portal. Questioned Costs: Unknown. Context: The Corporation inaccurately reported for period four $375,083 of Total Other PRF Expenses. Actual expenses incurred were $0. The Corporation should have reported all provider relief payments were applied against lost revenues. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend implementing controls to ensure amounts reported are accurate, complete and reviewed. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding. This report was prepared by the Vice President of Accounting and reviewed and approved prior to submission by the Chief Financial Officer. The approval process is deemed to be adequate by management but failed in this case due to the preparer and approver committing the same misinterpretation and overlooking the accounting provided in the ‘Other PRF Summary’ section of the report. The preparer and approver will both apply a corrected understanding and perform a more thorough review of future PRF reports.