Finding Text
2023-001 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
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 service revenues for the periods reported on in its reporting of
actual net patient service revenues for its calculation of lost revenues due to
coronavirus.
Condition
Context
Actual patient service revenues did not agree to reported patient service revenues.
This finding appears to be an isolated problem.
Cause The 2022 financial audit contained significant auditor detected journal entries. The
District reported on lost revenues before the audit was complete.
Effect The actual patient service revenues for 2021 and 2022 did not reflect the correct
amounts to be used in its lost revenue calculations. If accurate revenues had been
reported, the District would still have sufficient healthcare-related expenses
attributable to coronavirus and lost revenues to use all of the Provider Relief Fund
amounts received. Therefore, there is no effect on the District’s retention of the
Provider Relief Funds.
Recommendation We recommend the District’s management correct its lost revenue calculation for
any future reporting for the Provider Relief Fund.
Views of
responsible
officials and
planned
corrective actions
Management believes that the amount of Provider Relief Fund funding received by
Weston County is supported by pandemic-related lost revenues as well as
incremental expenses.
Management intends to perform an internal recalculation the information included
on the PRF reports. Those recalculated figures will be reconciled to the respective
internal and audited financial statements.
This action will be accomplished in conjunction with a top-to-bottom review of
the grants accounting, reporting and internal control environment, to be initiated in
the second half of calendar year 2025.