Finding Text
COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Federal Assistance Listing Number 93.498
U.S. Department of Health and Human Services
Criteria: Reporting (45 CFR 75.342). The Authority is required to prepare and submit
Period 2 and 3 provider relief fund reports to the U.S. Department of Health and Human
Services. These reports are to be prepared using accurate financial information and
submitted by the deadline established.
Condition: The Authority excluded revenue from multiple sources that it did not own for
the entire period of availability in the lost revenue calculation to create a more accurate
comparison, which is not allowed under option 1.
Questioned Costs: None.
Context: The Period 2 and 3 provider relief funding was tested. The Authority selected
option 1 to report lost revenues based on quarterly actual amounts. Errors in the
calculation of patient service revenue for the quarters reported were identified.
Effect: Errors were made in reporting quarterly total revenue/net charges for patient care
for each year, 2019, 2020, and 2021. Lost revenue was not accurately reported under
option 1. However, the Authority utilized allowable costs for Period 2 and 3 funding
received, so that no lost revenues were utilized as a basis for the funding received, and
as such, there are no questioned costs.
Cause: The Authority did not follow the criteria of option 1 when calculating patient service
revenue.
Identification as a repeat finding, if applicable: Repeat finding. See finding 2021-001.
Recommendation: Policies and procedures over federal grant reporting should be
modified to ensure reports are prepared using complete and accurate information.
Views of responsible officials and planned corrective actions: See attached corrective
action plan for the Authority’s response to the finding.