Audit 56243

Finding 2022-002 ? Cash Management Cluster: Research and Development Federal Agency: National Science Foundation, Department of Health and Human Services National Institutes of Health Assistance Listing Program Title and Number: Mathematical and Physical Sciences ? 47.049, Oral Diseases and Disorders Research ? 93.121 Award Identifying Number: 1935950, 5 U24DE029462 03 Award Year: July 1, 2021 to June 30, 2022 Criteria: In accordance with 2 CFR 200.305 (b), for non-federal entities other than states, payment methods associated with expenditures must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-federal entity, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the federal awarding agency sets a specific condition per 2 CFR 200.208, or when the non-federal entity requests payment by reimbursement. Per the Office of Management and Budget (?OMB?) Compliance Supplement, the non-federal entity must disburse funds for expenditures before requesting payment from the federal awarding agency or pass-through entity. Condition: In testing compliance with the cash management compliance requirement in accordance with the OMB Compliance Supplement, specifically the reimbursement method, 25 individual expenditures across three campuses were tested to compare the date the University paid the vendor to the date the University requested sponsor reimbursement. We noted two out of 25 instances in which reimbursement was requested from the sponsor before the University paid the related expenditure. Questioned Costs: None. Cause: Management?s current process across all campuses is to request reimbursement from sponsors once the expenditures are incurred, regardless of whether or not payments to vendors have been previously made. Effect: The University requested and received federal reimbursement prior to paying vendors for the selected expenditures. Recommendation: The University should revisit existing internal control procedures to ensure expenditures are paid in compliance with federal reimbursement requirements. View of Responsible Officials: Refer to Management?s Corrective Action Plan for management?s view and corrective action plan for the finding described above.

Finding 2022-002 ? Cash Management Cluster: Research and Development Federal Agency: National Science Foundation, Department of Health and Human Services National Institutes of Health Assistance Listing Program Title and Number: Mathematical and Physical Sciences ? 47.049, Oral Diseases and Disorders Research ? 93.121 Award Identifying Number: 1935950, 5 U24DE029462 03 Award Year: July 1, 2021 to June 30, 2022 Criteria: In accordance with 2 CFR 200.305 (b), for non-federal entities other than states, payment methods associated with expenditures must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-federal entity, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the federal awarding agency sets a specific condition per 2 CFR 200.208, or when the non-federal entity requests payment by reimbursement. Per the Office of Management and Budget (?OMB?) Compliance Supplement, the non-federal entity must disburse funds for expenditures before requesting payment from the federal awarding agency or pass-through entity. Condition: In testing compliance with the cash management compliance requirement in accordance with the OMB Compliance Supplement, specifically the reimbursement method, 25 individual expenditures across three campuses were tested to compare the date the University paid the vendor to the date the University requested sponsor reimbursement. We noted two out of 25 instances in which reimbursement was requested from the sponsor before the University paid the related expenditure. Questioned Costs: None. Cause: Management?s current process across all campuses is to request reimbursement from sponsors once the expenditures are incurred, regardless of whether or not payments to vendors have been previously made. Effect: The University requested and received federal reimbursement prior to paying vendors for the selected expenditures. Recommendation: The University should revisit existing internal control procedures to ensure expenditures are paid in compliance with federal reimbursement requirements. View of Responsible Officials: Refer to Management?s Corrective Action Plan for management?s view and corrective action plan for the finding described above.

Finding 2022-001 ? HEERF Student Grant Disbursements Cluster: N/A Federal Agency: Department of Education Assistance Listing Program Title and Number: COVID-19 Education Stabilization Fund ? 84.425E Award Name: Higher Education Emergency Relief Fund ? Student Aid Portion Award Identifying Number: P425E205304-20B Award Year: Academic Year 2021-2022 Criteria: The University is subject to compliance requirements pertaining to the disbursement of grants to students using the Student Aid portion of Higher Education Emergency Relief Funds (?HEERF?). The UM-Flint campus established policies and procedures in line with the requirements of The Coronavirus Aid, Relief, and Economic Security Act (?CARES?), Coronavirus Response and Relief Supplemental Appropriations Act (?CRRSAA?), and American Rescue Plan (?ARP?). Students applied for HEERF funds, and policies generally awarded funds based on the amount applied for within the application, the Estimated Family Contribution (?EFC?) per a student?s Free Application for Federal Student Aid information, or a flat amount for students who applied and did not have an EFC on file. On the application, the student could indicate the amount and what type of expenses the funds would cover, and the student was awarded the lesser of the amount based on his or her EFC or the amount needed to cover the expenses claimed in the application. Condition: While reviewing underlying support for a sample of 25 students at the UM-Flint campus, we identified two students That received an incorrect amount of funds based on their applications and EFCs. One student applied for funds based on expenses of an amount greater than the eligible EFC amount, and therefore should have received the amount allowed based on the student?s EFC in accordance with the policy (i.e., the lesser amount of the two). However, the student received $500 more than what was permitted for the student?s EFC based on the policies and procedures established. The other student applied for a lesser amount than what would be awarded based on the student?s EFC, but instead received the EFC amount, resulting in an additional $374 awarded to the student. Questioned Costs: $874 Cause: Prior to September 27, 2021, the UM-Flint campus management manually populated a spreadsheet that determined what amount students would be eligible to receive based on either their application or EFC. Both students identified were awarded funds in July and September 2021, and controls to ensure accurate distribution of such funds did not operate as designed during this period. Beginning September 27, 2021, management began using Excel formulas to calculate amounts for the awards to students, thereby reducing the risk of manual error from this date forward. Effect: Incorrect amounts were distributed to certain students. Recommendation: The University should continue to ensure their revised process put in place in September 2021 is operating effectively as it relates to the awarding of the remaining HEERF funds. View of Responsible Officials: Refer to Management?s Corrective Action Plan for management?s view and corrective action plan for the finding described above.

Finding 2022-003 ? Provider Relief Fund Reporting Cluster: N/A Federal Agency: Department of Health and Human Services (HHS) Health Resources and Services Administration Assistance Listing Program Title and Number: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ? 93.498 Award Name: COVID-19 ? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Award Identifying Number: None noted Award Year: January 1, 2020 to June 30, 2022 Criteria: The University is required to submit a report via the HHS Provider Relief Fund (?PRF?) reporting portal for specified periods. The payments received from July 1, 2020 to June 30, 2021, which are reported on the Period 2 and Period 3 reports, are included on the fiscal year 2022 Schedule of Expenditures of Federal Awards. The report details payments received during the applicable reporting timeframe, other assistance received, expenses incurred relating to the payment received, and a calculation of lost revenues for the portion of the payment that was applied to lost revenue. The University?s PRF funds were used across several different entities, and the HHS PRF reporting portal submission consolidates all entity information into the reportable amounts. When using Option (i) to report lost revenues in the HHS PRF reporting portal, the submission requires the breakout of total revenue/net charges from patient care by payor by quarter from 2019 through the reporting timeframe. The 2022 OMB Compliance Supplement considers the total revenue/net charges from patient care reported by payor by quarter as well as the totals for each quarter to be key line items. Condition: In testing the reporting compliance requirement in accordance with the OMB Compliance Supplement, we reviewed the Period 2 and Period 3 HHS PRF reporting portal submissions, which included lost revenue calculations comprised of four entities? data. We also reviewed the underlying payor data used to compile the reported lost revenue amounts by payor. As a part of our review, we identified one entity that incorrectly transposed the self-pay and other payor categories when reporting lost revenue, which impacted each quarter within the Periods 2 and 3 HHS PRF reporting portal submissions, but did not impact the total lost revenue amounts by quarter. Refer to table below, which illustrates the amount in which the self-pay category was overstated, and the other payor category was understated. Quarter Self-pay overstated Other payor understated Net effect on total lost revenue Q1 2019 $10.42M ($10.42M) $0 Q2 2019 $15.99M ($15.99M) $0 Q3 2019 $19.29M ($19.29M) $0 Q4 2019 $17.38M ($17.38M) $0 Q1 2020 $5.35M ($5.35M) $0 Q2 2020 $6.77M ($6.77M) $0 Q3 2020 $17.69M ($17.69M) $0 Q4 2020 $14.74M ($14.74M) $0 Q1 2021 $13.22M ($13.22M) $0 Q2 2021 $16.91M ($16.91M) $0 Q3 2021 $13.10M ($13.10M) $0 Q4 2021 $10.14M ($10.14M) $0 Q1 2022 $2.59M ($2.59M) $0 Q2 2022 $7.90M ($7.90M) $0 Questioned Costs: None. Cause: Each entity compiles its own data and provides a summarized version in the report format to a central Finance employee who subsequently consolidates all summary information received and inputs the consolidated totals into the HHS PRF reporting portal template. The review at the individual entity level was not performed at a sufficient level of precision to ensure the lost revenue amounts by payor were reported in the correct order based on the predetermined format of the report. Effect: The self-pay lost revenue amounts by payor are overstated each quarter and the other payor amounts are understated each quarter in the Periods 2 and 3 HHS PRF reporting portal submission. The total lost revenue and amount of lost revenue claimed are unaffected. Recommendation: Each University entity should ensure detailed reviews are performed between the underlying data and the summarized data in report format prior to providing the data to the central Finance employee for compilation in the HHS PRF reporting portal submissions. View of Responsible Officials: Refer to Management?s Corrective Action Plan for management?s view and corrective action plan for the finding described above.

Finding 2022-003 ? Provider Relief Fund Reporting Cluster: N/A Federal Agency: Department of Health and Human Services (HHS) Health Resources and Services Administration Assistance Listing Program Title and Number: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ? 93.498 Award Name: COVID-19 ? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Award Identifying Number: None noted Award Year: January 1, 2020 to June 30, 2022 Criteria: The University is required to submit a report via the HHS Provider Relief Fund (?PRF?) reporting portal for specified periods. The payments received from July 1, 2020 to June 30, 2021, which are reported on the Period 2 and Period 3 reports, are included on the fiscal year 2022 Schedule of Expenditures of Federal Awards. The report details payments received during the applicable reporting timeframe, other assistance received, expenses incurred relating to the payment received, and a calculation of lost revenues for the portion of the payment that was applied to lost revenue. The University?s PRF funds were used across several different entities, and the HHS PRF reporting portal submission consolidates all entity information into the reportable amounts. When using Option (i) to report lost revenues in the HHS PRF reporting portal, the submission requires the breakout of total revenue/net charges from patient care by payor by quarter from 2019 through the reporting timeframe. The 2022 OMB Compliance Supplement considers the total revenue/net charges from patient care reported by payor by quarter as well as the totals for each quarter to be key line items. Condition: In testing the reporting compliance requirement in accordance with the OMB Compliance Supplement, we reviewed the Period 2 and Period 3 HHS PRF reporting portal submissions, which included lost revenue calculations comprised of four entities? data. We also reviewed the underlying payor data used to compile the reported lost revenue amounts by payor. As a part of our review, we identified one entity that incorrectly transposed the self-pay and other payor categories when reporting lost revenue, which impacted each quarter within the Periods 2 and 3 HHS PRF reporting portal submissions, but did not impact the total lost revenue amounts by quarter. Refer to table below, which illustrates the amount in which the self-pay category was overstated, and the other payor category was understated. Quarter Self-pay overstated Other payor understated Net effect on total lost revenue Q1 2019 $10.42M ($10.42M) $0 Q2 2019 $15.99M ($15.99M) $0 Q3 2019 $19.29M ($19.29M) $0 Q4 2019 $17.38M ($17.38M) $0 Q1 2020 $5.35M ($5.35M) $0 Q2 2020 $6.77M ($6.77M) $0 Q3 2020 $17.69M ($17.69M) $0 Q4 2020 $14.74M ($14.74M) $0 Q1 2021 $13.22M ($13.22M) $0 Q2 2021 $16.91M ($16.91M) $0 Q3 2021 $13.10M ($13.10M) $0 Q4 2021 $10.14M ($10.14M) $0 Q1 2022 $2.59M ($2.59M) $0 Q2 2022 $7.90M ($7.90M) $0 Questioned Costs: None. Cause: Each entity compiles its own data and provides a summarized version in the report format to a central Finance employee who subsequently consolidates all summary information received and inputs the consolidated totals into the HHS PRF reporting portal template. The review at the individual entity level was not performed at a sufficient level of precision to ensure the lost revenue amounts by payor were reported in the correct order based on the predetermined format of the report. Effect: The self-pay lost revenue amounts by payor are overstated each quarter and the other payor amounts are understated each quarter in the Periods 2 and 3 HHS PRF reporting portal submission. The total lost revenue and amount of lost revenue claimed are unaffected. Recommendation: Each University entity should ensure detailed reviews are performed between the underlying data and the summarized data in report format prior to providing the data to the central Finance employee for compilation in the HHS PRF reporting portal submissions. View of Responsible Officials: Refer to Management?s Corrective Action Plan for management?s view and corrective action plan for the finding described above.

Finding 2022-002 ? Cash Management Cluster: Research and Development Federal Agency: National Science Foundation, Department of Health and Human Services National Institutes of Health Assistance Listing Program Title and Number: Mathematical and Physical Sciences ? 47.049, Oral Diseases and Disorders Research ? 93.121 Award Identifying Number: 1935950, 5 U24DE029462 03 Award Year: July 1, 2021 to June 30, 2022 Criteria: In accordance with 2 CFR 200.305 (b), for non-federal entities other than states, payment methods associated with expenditures must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-federal entity, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the federal awarding agency sets a specific condition per 2 CFR 200.208, or when the non-federal entity requests payment by reimbursement. Per the Office of Management and Budget (?OMB?) Compliance Supplement, the non-federal entity must disburse funds for expenditures before requesting payment from the federal awarding agency or pass-through entity. Condition: In testing compliance with the cash management compliance requirement in accordance with the OMB Compliance Supplement, specifically the reimbursement method, 25 individual expenditures across three campuses were tested to compare the date the University paid the vendor to the date the University requested sponsor reimbursement. We noted two out of 25 instances in which reimbursement was requested from the sponsor before the University paid the related expenditure. Questioned Costs: None. Cause: Management?s current process across all campuses is to request reimbursement from sponsors once the expenditures are incurred, regardless of whether or not payments to vendors have been previously made. Effect: The University requested and received federal reimbursement prior to paying vendors for the selected expenditures. Recommendation: The University should revisit existing internal control procedures to ensure expenditures are paid in compliance with federal reimbursement requirements. View of Responsible Officials: Refer to Management?s Corrective Action Plan for management?s view and corrective action plan for the finding described above.

Finding 2022-002 ? Cash Management Cluster: Research and Development Federal Agency: National Science Foundation, Department of Health and Human Services National Institutes of Health Assistance Listing Program Title and Number: Mathematical and Physical Sciences ? 47.049, Oral Diseases and Disorders Research ? 93.121 Award Identifying Number: 1935950, 5 U24DE029462 03 Award Year: July 1, 2021 to June 30, 2022 Criteria: In accordance with 2 CFR 200.305 (b), for non-federal entities other than states, payment methods associated with expenditures must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-federal entity, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the federal awarding agency sets a specific condition per 2 CFR 200.208, or when the non-federal entity requests payment by reimbursement. Per the Office of Management and Budget (?OMB?) Compliance Supplement, the non-federal entity must disburse funds for expenditures before requesting payment from the federal awarding agency or pass-through entity. Condition: In testing compliance with the cash management compliance requirement in accordance with the OMB Compliance Supplement, specifically the reimbursement method, 25 individual expenditures across three campuses were tested to compare the date the University paid the vendor to the date the University requested sponsor reimbursement. We noted two out of 25 instances in which reimbursement was requested from the sponsor before the University paid the related expenditure. Questioned Costs: None. Cause: Management?s current process across all campuses is to request reimbursement from sponsors once the expenditures are incurred, regardless of whether or not payments to vendors have been previously made. Effect: The University requested and received federal reimbursement prior to paying vendors for the selected expenditures. Recommendation: The University should revisit existing internal control procedures to ensure expenditures are paid in compliance with federal reimbursement requirements. View of Responsible Officials: Refer to Management?s Corrective Action Plan for management?s view and corrective action plan for the finding described above.

Finding 2022-001 ? HEERF Student Grant Disbursements Cluster: N/A Federal Agency: Department of Education Assistance Listing Program Title and Number: COVID-19 Education Stabilization Fund ? 84.425E Award Name: Higher Education Emergency Relief Fund ? Student Aid Portion Award Identifying Number: P425E205304-20B Award Year: Academic Year 2021-2022 Criteria: The University is subject to compliance requirements pertaining to the disbursement of grants to students using the Student Aid portion of Higher Education Emergency Relief Funds (?HEERF?). The UM-Flint campus established policies and procedures in line with the requirements of The Coronavirus Aid, Relief, and Economic Security Act (?CARES?), Coronavirus Response and Relief Supplemental Appropriations Act (?CRRSAA?), and American Rescue Plan (?ARP?). Students applied for HEERF funds, and policies generally awarded funds based on the amount applied for within the application, the Estimated Family Contribution (?EFC?) per a student?s Free Application for Federal Student Aid information, or a flat amount for students who applied and did not have an EFC on file. On the application, the student could indicate the amount and what type of expenses the funds would cover, and the student was awarded the lesser of the amount based on his or her EFC or the amount needed to cover the expenses claimed in the application. Condition: While reviewing underlying support for a sample of 25 students at the UM-Flint campus, we identified two students That received an incorrect amount of funds based on their applications and EFCs. One student applied for funds based on expenses of an amount greater than the eligible EFC amount, and therefore should have received the amount allowed based on the student?s EFC in accordance with the policy (i.e., the lesser amount of the two). However, the student received $500 more than what was permitted for the student?s EFC based on the policies and procedures established. The other student applied for a lesser amount than what would be awarded based on the student?s EFC, but instead received the EFC amount, resulting in an additional $374 awarded to the student. Questioned Costs: $874 Cause: Prior to September 27, 2021, the UM-Flint campus management manually populated a spreadsheet that determined what amount students would be eligible to receive based on either their application or EFC. Both students identified were awarded funds in July and September 2021, and controls to ensure accurate distribution of such funds did not operate as designed during this period. Beginning September 27, 2021, management began using Excel formulas to calculate amounts for the awards to students, thereby reducing the risk of manual error from this date forward. Effect: Incorrect amounts were distributed to certain students. Recommendation: The University should continue to ensure their revised process put in place in September 2021 is operating effectively as it relates to the awarding of the remaining HEERF funds. View of Responsible Officials: Refer to Management?s Corrective Action Plan for management?s view and corrective action plan for the finding described above.

Finding 2022-003 ? Provider Relief Fund Reporting Cluster: N/A Federal Agency: Department of Health and Human Services (HHS) Health Resources and Services Administration Assistance Listing Program Title and Number: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ? 93.498 Award Name: COVID-19 ? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Award Identifying Number: None noted Award Year: January 1, 2020 to June 30, 2022 Criteria: The University is required to submit a report via the HHS Provider Relief Fund (?PRF?) reporting portal for specified periods. The payments received from July 1, 2020 to June 30, 2021, which are reported on the Period 2 and Period 3 reports, are included on the fiscal year 2022 Schedule of Expenditures of Federal Awards. The report details payments received during the applicable reporting timeframe, other assistance received, expenses incurred relating to the payment received, and a calculation of lost revenues for the portion of the payment that was applied to lost revenue. The University?s PRF funds were used across several different entities, and the HHS PRF reporting portal submission consolidates all entity information into the reportable amounts. When using Option (i) to report lost revenues in the HHS PRF reporting portal, the submission requires the breakout of total revenue/net charges from patient care by payor by quarter from 2019 through the reporting timeframe. The 2022 OMB Compliance Supplement considers the total revenue/net charges from patient care reported by payor by quarter as well as the totals for each quarter to be key line items. Condition: In testing the reporting compliance requirement in accordance with the OMB Compliance Supplement, we reviewed the Period 2 and Period 3 HHS PRF reporting portal submissions, which included lost revenue calculations comprised of four entities? data. We also reviewed the underlying payor data used to compile the reported lost revenue amounts by payor. As a part of our review, we identified one entity that incorrectly transposed the self-pay and other payor categories when reporting lost revenue, which impacted each quarter within the Periods 2 and 3 HHS PRF reporting portal submissions, but did not impact the total lost revenue amounts by quarter. Refer to table below, which illustrates the amount in which the self-pay category was overstated, and the other payor category was understated. Quarter Self-pay overstated Other payor understated Net effect on total lost revenue Q1 2019 $10.42M ($10.42M) $0 Q2 2019 $15.99M ($15.99M) $0 Q3 2019 $19.29M ($19.29M) $0 Q4 2019 $17.38M ($17.38M) $0 Q1 2020 $5.35M ($5.35M) $0 Q2 2020 $6.77M ($6.77M) $0 Q3 2020 $17.69M ($17.69M) $0 Q4 2020 $14.74M ($14.74M) $0 Q1 2021 $13.22M ($13.22M) $0 Q2 2021 $16.91M ($16.91M) $0 Q3 2021 $13.10M ($13.10M) $0 Q4 2021 $10.14M ($10.14M) $0 Q1 2022 $2.59M ($2.59M) $0 Q2 2022 $7.90M ($7.90M) $0 Questioned Costs: None. Cause: Each entity compiles its own data and provides a summarized version in the report format to a central Finance employee who subsequently consolidates all summary information received and inputs the consolidated totals into the HHS PRF reporting portal template. The review at the individual entity level was not performed at a sufficient level of precision to ensure the lost revenue amounts by payor were reported in the correct order based on the predetermined format of the report. Effect: The self-pay lost revenue amounts by payor are overstated each quarter and the other payor amounts are understated each quarter in the Periods 2 and 3 HHS PRF reporting portal submission. The total lost revenue and amount of lost revenue claimed are unaffected. Recommendation: Each University entity should ensure detailed reviews are performed between the underlying data and the summarized data in report format prior to providing the data to the central Finance employee for compilation in the HHS PRF reporting portal submissions. View of Responsible Officials: Refer to Management?s Corrective Action Plan for management?s view and corrective action plan for the finding described above.

Finding 2022-003 ? Provider Relief Fund Reporting Cluster: N/A Federal Agency: Department of Health and Human Services (HHS) Health Resources and Services Administration Assistance Listing Program Title and Number: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ? 93.498 Award Name: COVID-19 ? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Award Identifying Number: None noted Award Year: January 1, 2020 to June 30, 2022 Criteria: The University is required to submit a report via the HHS Provider Relief Fund (?PRF?) reporting portal for specified periods. The payments received from July 1, 2020 to June 30, 2021, which are reported on the Period 2 and Period 3 reports, are included on the fiscal year 2022 Schedule of Expenditures of Federal Awards. The report details payments received during the applicable reporting timeframe, other assistance received, expenses incurred relating to the payment received, and a calculation of lost revenues for the portion of the payment that was applied to lost revenue. The University?s PRF funds were used across several different entities, and the HHS PRF reporting portal submission consolidates all entity information into the reportable amounts. When using Option (i) to report lost revenues in the HHS PRF reporting portal, the submission requires the breakout of total revenue/net charges from patient care by payor by quarter from 2019 through the reporting timeframe. The 2022 OMB Compliance Supplement considers the total revenue/net charges from patient care reported by payor by quarter as well as the totals for each quarter to be key line items. Condition: In testing the reporting compliance requirement in accordance with the OMB Compliance Supplement, we reviewed the Period 2 and Period 3 HHS PRF reporting portal submissions, which included lost revenue calculations comprised of four entities? data. We also reviewed the underlying payor data used to compile the reported lost revenue amounts by payor. As a part of our review, we identified one entity that incorrectly transposed the self-pay and other payor categories when reporting lost revenue, which impacted each quarter within the Periods 2 and 3 HHS PRF reporting portal submissions, but did not impact the total lost revenue amounts by quarter. Refer to table below, which illustrates the amount in which the self-pay category was overstated, and the other payor category was understated. Quarter Self-pay overstated Other payor understated Net effect on total lost revenue Q1 2019 $10.42M ($10.42M) $0 Q2 2019 $15.99M ($15.99M) $0 Q3 2019 $19.29M ($19.29M) $0 Q4 2019 $17.38M ($17.38M) $0 Q1 2020 $5.35M ($5.35M) $0 Q2 2020 $6.77M ($6.77M) $0 Q3 2020 $17.69M ($17.69M) $0 Q4 2020 $14.74M ($14.74M) $0 Q1 2021 $13.22M ($13.22M) $0 Q2 2021 $16.91M ($16.91M) $0 Q3 2021 $13.10M ($13.10M) $0 Q4 2021 $10.14M ($10.14M) $0 Q1 2022 $2.59M ($2.59M) $0 Q2 2022 $7.90M ($7.90M) $0 Questioned Costs: None. Cause: Each entity compiles its own data and provides a summarized version in the report format to a central Finance employee who subsequently consolidates all summary information received and inputs the consolidated totals into the HHS PRF reporting portal template. The review at the individual entity level was not performed at a sufficient level of precision to ensure the lost revenue amounts by payor were reported in the correct order based on the predetermined format of the report. Effect: The self-pay lost revenue amounts by payor are overstated each quarter and the other payor amounts are understated each quarter in the Periods 2 and 3 HHS PRF reporting portal submission. The total lost revenue and amount of lost revenue claimed are unaffected. Recommendation: Each University entity should ensure detailed reviews are performed between the underlying data and the summarized data in report format prior to providing the data to the central Finance employee for compilation in the HHS PRF reporting portal submissions. View of Responsible Officials: Refer to Management?s Corrective Action Plan for management?s view and corrective action plan for the finding described above.