Finding Text
ederal Agency: U.S. Department of Health and Human Services
Federal Program Name: COVID-19 Provider Relief Funding and American Rescue Plan Assistance Listing Number: 93.498
Award Period: January 1, 2023 – December 31, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters
Criteria or specific requirement: As outlined in the Terms and Conditions, Provider Relief Fund (PRF) payments may be used to prevent, prepare for, and respond to coronavirus, and for related expenses or lost revenues from health care services attributable to coronavirus. Lost revenues are to be calculated using actual quarterly revenue in the year of reporting compared to same quarterly revenues generated in 2019.
Condition: The Corporation mis-reported lost revenues for one entity’s Period 6 PRF report.
Questioned Costs: None
Context: During testing, it was noted that one quarter of lost revenues did not agree with the Corporation’s internal financial statements, which was not identified in the Corporation’s review of the reporting submission. This resulted in overstating the Corporation’s lost revenues for the period by $100,000.
Cause: Management oversight.
Effect: The Corporation mis-keyed one quarter of lost revenue when completing the reporting submission.
Repeat Finding: The finding is a repeat of a finding in the prior year. Prior year finding number was 2022-001.
Recommendation: We recommend management review the lost revenues included on the reporting submissions to ensure the lost revenues agree with the internal financial statements.
Views of responsible officials: There is no disagreement with the audit finding. They have a significant amount of unused lost revenue to cover the mis-reported lost revenue.