Audit 403999

Section III – Federal Award Findings and Questioned Costs 2021-001 – Other Matter - Noncompliance Federal agency: U.S. Department of Health and Human Services (HHS) Federal program title: COVID-19 Provider Relief Fund (PRF) – Period 1 Assistance Listing No.: 93.498 Criteria: Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act and are to be used to prevent, prepare for, and respond to coronavirus. The funds shall reimburse the recipient only for expenses or lost revenues that are attributable to coronavirus. The funds may not be used to reimburse expenses or lost revenues that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition: The Medical Center reported revenues within the HHS Health Resources and Services Administration (HRSA) Reporting Portal Period 1 submission that did not have adequate documentation. In addition, the Medical Center’s lost revenues included a bad debt transposition keying error affecting net charges from patient care. Cause: Although the Medical Center has a process in place to ensure lost revenues are properly calculated and reviewed, appropriate supporting documentation was not retained, and certain net charges from patient care were overstated. Effect and Questioned Costs: The Medical Center’s lost revenues calculation included $170,775 that doesn’t tie to supporting source documentation. Also, due to a transportation keying error, the Medical Center improperly overstated 2020 Q3 revenue by $15,354,590. After correcting the transportion keying error, the 2020 Q3 Total Revenue/Net Charges from Patient Care would still be greater than the 2019 Q3 Total Revenue/Net Charges from Patient Care, therefore there would be no impact to the calculated lost revenues for the 2020 year over year change in patient care revenues. Recommendations: We recommend the Medical Center continue to review submissions to ensure consistency and accuracy of calculations, and reconciliations to supporting source documentation. Any corrections should be made at the time of discovery. Views of Responsible Officials: See management's correction action plan.