Finding Text
2022-001 Provider Relief Fund Reporting of Lost Revenues
Federal Agency Department of Health and Human Services
Assistance Listing
Number
93.498 – Provider Relief Fund and American Rescue Plan (ARP) Rural
Distribution
Criteria [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness
Under the terms and conditions of the award, the recipient certifies it will
include actual net patient service revenue in its calculation of lost revenue.
Condition Net patient service revenue used to calculate lost revenue was overstated. Lost
revenue could not be agreed to supporting documents. As a result, lost revenue
was not accurately reported.
Context This finding appears to be an isolated problem.
Cause The District prepared its lost revenue calculation before adjustments for
estimated third-party payor settlements were posted. The District also could
not reconcile amounts claimed to supporting documents.
Effect Lost revenue was not accurately reported. If the adjustment for estimated
third-party payor settlements was accurately reflected in the calculation, the
District would still have sufficient healthcare-related expenses attributable to
coronavirus and lost revenues to use all of the Provider Relief Funds received.
Therefore, there is no effect on the District’s retention of the Provider Relief
Funds.
Recommendation We recommend the District correct its lost revenue calculation in subsequent
period reporting for the Provider Relief Fund, and that the District maintain
supporting documents and calculations for lost revenue.
Views of responsible
officials and planned
corrective action
This issue was an isolated issue related to the timing of the final close of the
2022 financials occurring after Provider Relief Fund reporting deadline. We
strongly believe this issue will not likely occur again.