Audit 51015

2022-001 Provider Relief Fund Reporting of Lost Revenue Federal Agency: Department of Health and Human Services Federal Assistance Listing Number: 93.498 ? Provider Relief Fund and American Rescue Plan Rural Distribution Award Numbers: Not applicable Criteria: [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Under the terms and conditions of the award, the recipient certifies it will report actual net patient revenues for the periods reported on in its reporting of actual net patient revenues for its calculation of lost revenues due to coronavirus. Condition: The Center?s 2022 net patient service revenue was overstated due to the exclusion of contractual adjustments. As a result, net patient service revenues were not accurately reported. Context: This finding appears to be an isolated instance. Cause: The Center prepared its lost revenue calculations without including contractual adjustments. Effect: The actual net patient services revenues did not reflect the correct amounts to be used in its lost revenue calculations. If the adjustment was properly allocated, the Center would have reported more lost revenues to use towards Provider Relief Fund amounts received. Therefore, there is no effect on the Center?s retention of the Provider Relief Funds. Recommendation: We recommend the Center?s management correct its lost revenue calculation in subsequent period reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions: For Provider Relief Fund Phase 4 reporting, the 2022 net patient revenues were overstated as a result of the Center not including contractual adjustments; this resulted in an overstatement of revenue for the purposes of lost revenue calculation. We have changed our methodology for calculating net patient revenue and have also recalculated our 2022 net patient revenues. The recalculated 2022 net patient revenue numbers result in an increase of $789,199.99 in lost revenue that would have been available for us to use when completing our PRF Phase 4 report. The corrected numbers would be submitted in a subsequent period report, however at this time, the Center does not have any additional reporting due, and does not have a means to submit the corrected information. For any future reporting periods, contractual adjustment information will be included when calculating the net patient revenue.

2022-001 Provider Relief Fund Reporting of Lost Revenue Federal Agency: Department of Health and Human Services Federal Assistance Listing Number: 93.498 ? Provider Relief Fund and American Rescue Plan Rural Distribution Award Numbers: Not applicable Criteria: [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Under the terms and conditions of the award, the recipient certifies it will report actual net patient revenues for the periods reported on in its reporting of actual net patient revenues for its calculation of lost revenues due to coronavirus. Condition: The Center?s 2022 net patient service revenue was overstated due to the exclusion of contractual adjustments. As a result, net patient service revenues were not accurately reported. Context: This finding appears to be an isolated instance. Cause: The Center prepared its lost revenue calculations without including contractual adjustments. Effect: The actual net patient services revenues did not reflect the correct amounts to be used in its lost revenue calculations. If the adjustment was properly allocated, the Center would have reported more lost revenues to use towards Provider Relief Fund amounts received. Therefore, there is no effect on the Center?s retention of the Provider Relief Funds. Recommendation: We recommend the Center?s management correct its lost revenue calculation in subsequent period reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions: For Provider Relief Fund Phase 4 reporting, the 2022 net patient revenues were overstated as a result of the Center not including contractual adjustments; this resulted in an overstatement of revenue for the purposes of lost revenue calculation. We have changed our methodology for calculating net patient revenue and have also recalculated our 2022 net patient revenues. The recalculated 2022 net patient revenue numbers result in an increase of $789,199.99 in lost revenue that would have been available for us to use when completing our PRF Phase 4 report. The corrected numbers would be submitted in a subsequent period report, however at this time, the Center does not have any additional reporting due, and does not have a means to submit the corrected information. For any future reporting periods, contractual adjustment information will be included when calculating the net patient revenue.