Audit 45228

2022-001 Provider Relief Fund Reporting of Lost Revenue Federal Agency Department of Health and Human Services Assistance Listing Number 93.498 ? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: [ ] Significant Deficiency [X] Material Weakness [X] Compliance Finding Under the terms and conditions of the award, the recipient certifies it will report actual net patient revenues for the periods reported in its reporting of actual net patient revenues for its calculation of lost revenues due to coronavirus. Condition: The Organization?s fiscal year 2021 allowance for contractual adjustments and bad debt was understated, causing net patient service revenue to be overstated, resulting in audit adjustments to the Organization?s fiscal year 2021 financial statements. As a result, net patient service revenues were not accurately reported for the 2nd, 3rd, and 4th quarters of calendar year 2020 and the 1st quarter of calendar year 2021 on its Period 1 Provider Relief Fund report. Context: This finding appears to be an isolated problem. Cause: The Organization prepared its lost revenue calculations using system reports which were not reflective of necessary adjustments to net patient service revenue, which were later posted to its fiscal year 2021 financial statements. Effect: The actual net patient service revenues for the 2nd, 3rd, and 4th quarters of calendar year 2020 and the 1st quarter of calendar year 2021 did not reflect the correct amounts to be used in its lost revenue calculations. If the net patient service revenues were reported correctly, the Organization would still have sufficient lost revenues to cover all of the Provider Relief Fund amounts received. Therefore, there is no effect on the Organization?s retention of the Provider Relief Funds. Recommendation: We recommend the Organization correct its lost revenue calculation in subsequent period reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions: This finding is the same finding from the previous year?s audit regarding our contractual adjustments and bad debt being understated. Our response then ? Community Health Centers of Central Wyoming will record patient refunds payable at year end as a liability rather than as a credit to accounts receivable and will also record prepaid dental services as deferred revenue rather than a credit to accounts receivable. In calculating a bad debt allowance, Community Health Centers of Central Wyoming will not extend the period that the bad debt allowance is based on beyond six months ? is still valid for this issue. Our financials were updated after reporting for Provider Relief Funds which resulted in understatement of the contractual allowance. We have corrected the issue of calculating the allowance as of March 31, 2022. We will correct the lost revenue on the next PRF reporting cycle.

2022-001 Provider Relief Fund Reporting of Lost Revenue Federal Agency Department of Health and Human Services Assistance Listing Number 93.498 ? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: [ ] Significant Deficiency [X] Material Weakness [X] Compliance Finding Under the terms and conditions of the award, the recipient certifies it will report actual net patient revenues for the periods reported in its reporting of actual net patient revenues for its calculation of lost revenues due to coronavirus. Condition: The Organization?s fiscal year 2021 allowance for contractual adjustments and bad debt was understated, causing net patient service revenue to be overstated, resulting in audit adjustments to the Organization?s fiscal year 2021 financial statements. As a result, net patient service revenues were not accurately reported for the 2nd, 3rd, and 4th quarters of calendar year 2020 and the 1st quarter of calendar year 2021 on its Period 1 Provider Relief Fund report. Context: This finding appears to be an isolated problem. Cause: The Organization prepared its lost revenue calculations using system reports which were not reflective of necessary adjustments to net patient service revenue, which were later posted to its fiscal year 2021 financial statements. Effect: The actual net patient service revenues for the 2nd, 3rd, and 4th quarters of calendar year 2020 and the 1st quarter of calendar year 2021 did not reflect the correct amounts to be used in its lost revenue calculations. If the net patient service revenues were reported correctly, the Organization would still have sufficient lost revenues to cover all of the Provider Relief Fund amounts received. Therefore, there is no effect on the Organization?s retention of the Provider Relief Funds. Recommendation: We recommend the Organization correct its lost revenue calculation in subsequent period reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions: This finding is the same finding from the previous year?s audit regarding our contractual adjustments and bad debt being understated. Our response then ? Community Health Centers of Central Wyoming will record patient refunds payable at year end as a liability rather than as a credit to accounts receivable and will also record prepaid dental services as deferred revenue rather than a credit to accounts receivable. In calculating a bad debt allowance, Community Health Centers of Central Wyoming will not extend the period that the bad debt allowance is based on beyond six months ? is still valid for this issue. Our financials were updated after reporting for Provider Relief Funds which resulted in understatement of the contractual allowance. We have corrected the issue of calculating the allowance as of March 31, 2022. We will correct the lost revenue on the next PRF reporting cycle.