Finding 2021-001:
Condition and Context: The Hospital included expenses in its filing that did not meet criteria of allowable expenses as defined by the U.S. Department of Health and Human Services guidance. The filing included various expenses associated with the facility that were not specificall...
Finding 2021-001:
Condition and Context: The Hospital included expenses in its filing that did not meet criteria of allowable expenses as defined by the U.S. Department of Health and Human Services guidance. The filing included various expenses associated with the facility that were not specifically used to prevent, prepare for, and respond to the coronavirus. During our testing we noted exceptions on 7 of 40 samples. Upon further analysis of the entire population, we noted that the Hospital reported expenses associated with the facility that were not specifically used to prevent, prepare for, and respond to the coronavirus totaling $1,359,809. The Hospital received distributions totaling $3,736,717 and reported total expenses of $1,950,653. Our sample was not a statistically valid sample.
Corrective Action Plan: Subsequent to the filing of the Period 1 report, the Hospital instituted new policies and procedures surrounding the use, tracking and reporting on federal funds, including the Provider Relief Fund and American Rescue Plan Act (ARP) Rural Distribution. Under the new policies and procedures, the usage of all funds is accumulated and reviewed on a periodic basis, and interpretive of most updated, published guidance, and all reporting is subjected to reviews by Kevin Gessler prior to reporting.
Name of Contact Person Responsible for Corrective Action: Kevin Gessler, Chief Financial Officer
Anticipated Completion Date: As guidance fluctuated, even through 2022, framework for updated procedures was instituted for subsequent submissions for increased accuracy. Updated policies and procedures, prospectively, have been updated by May 2023.