Audit 42405

COVID-19 Provider Relief Fund (PRF) 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) The Organization is required to prepare and submit period two and three 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 District included revenue from multiple nursing home facilities that they did not own for entire year in the lost revenue calculation, resulting in material differences in quarterly revenue. Questioned costs: None. Context: The period two and three provider relief fund reports were tested. The District selected option 3 to report lost revenues based on quarterly actual amounts. A material error in the calculation of patient service revenue for the quarters reported was identified. Cause: Internal controls over compliance were not in place to ensure the District properly calculated net patient service revenue in their report under option 3. The District is required to prepare and submit period two and three provider relief fund reporting. These reports are to be prepared using accurate financial information and submitted by the deadline established. The District did not correctly summarize patient service revenue in their calculation. 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. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Identification as a repeat finding: This is a repeat finding. See 2021-002 Views of responsible officials and planned corrective actions: See attached corrective action plan for the District?s response to finding.

COVID-19 Provider Relief Fund (PRF) 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) The Organization is required to prepare and submit period two and three 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 District included revenue from multiple nursing home facilities that they did not own for entire year in the lost revenue calculation, resulting in material differences in quarterly revenue. Questioned costs: None. Context: The period two and three provider relief fund reports were tested. The District selected option 3 to report lost revenues based on quarterly actual amounts. A material error in the calculation of patient service revenue for the quarters reported was identified. Cause: Internal controls over compliance were not in place to ensure the District properly calculated net patient service revenue in their report under option 3. The District is required to prepare and submit period two and three provider relief fund reporting. These reports are to be prepared using accurate financial information and submitted by the deadline established. The District did not correctly summarize patient service revenue in their calculation. 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. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Identification as a repeat finding: This is a repeat finding. See 2021-002 Views of responsible officials and planned corrective actions: See attached corrective action plan for the District?s response to finding.