Audit 46543

2022-001 Federal Program Name: COVID ? 19 Provider Relief Fund (PRF) Federal Agency: U.S. Department of Health and Human Services Federal Assistance Listing Title and Number: COVID-19 Provider Relief Fund, 93.498 Criteria or Specific Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Condition: Lost revenues attributable to COVID-19 were not properly calculated and reported for Provider Relief Fund Portal reporting Periods 3 and 4. Questioned Costs: None Context: The Hospital reported lost revenues using the budget vs. actual method. Net patient service revenue used in the calculation did not include bad debt expense and did not include certain adjustments to patient service revenue recorded during the year-end reporting process. Also, the budgetary periods used in calculations for 2021 and 2022 were not calculated based on budgets approved prior to March 27, 2020. This presentation did not conform with guidance published by the Health Resources and Services Administration (HRSA). Errors were identified by testing the entirety of the lost revenue calculations and reconciling back to underlying financial information. Effect: The Hospital did not properly calculate and report lost revenues. Cause: Internal controls surrounding the review and submission of required reports were not adequately applied to ensure accuracy of required elements. Repeat Findings: No Recommendation: We recommend the Hospital prepare internal documentation supporting lost revenue calculations in an approved manner based on HRSA published guidance. Views of Responsible Officials and Planned Corrective Action: We concur. Management continues to evaluate the current controls related to reporting to ensure amounts are appropriately stated. Under a revised calculation, we have adequate expenses and lost revenues to support funding reported for all periods of Provider Relief Fund reporting

2022-001 Federal Program Name: COVID ? 19 Provider Relief Fund (PRF) Federal Agency: U.S. Department of Health and Human Services Federal Assistance Listing Title and Number: COVID-19 Provider Relief Fund, 93.498 Criteria or Specific Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Condition: Lost revenues attributable to COVID-19 were not properly calculated and reported for Provider Relief Fund Portal reporting Periods 3 and 4. Questioned Costs: None Context: The Hospital reported lost revenues using the budget vs. actual method. Net patient service revenue used in the calculation did not include bad debt expense and did not include certain adjustments to patient service revenue recorded during the year-end reporting process. Also, the budgetary periods used in calculations for 2021 and 2022 were not calculated based on budgets approved prior to March 27, 2020. This presentation did not conform with guidance published by the Health Resources and Services Administration (HRSA). Errors were identified by testing the entirety of the lost revenue calculations and reconciling back to underlying financial information. Effect: The Hospital did not properly calculate and report lost revenues. Cause: Internal controls surrounding the review and submission of required reports were not adequately applied to ensure accuracy of required elements. Repeat Findings: No Recommendation: We recommend the Hospital prepare internal documentation supporting lost revenue calculations in an approved manner based on HRSA published guidance. Views of Responsible Officials and Planned Corrective Action: We concur. Management continues to evaluate the current controls related to reporting to ensure amounts are appropriately stated. Under a revised calculation, we have adequate expenses and lost revenues to support funding reported for all periods of Provider Relief Fund reporting