Finding 1164215 (2022-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-12-09
Audit: 373518
Organization: Pemiscot Memorial Health System (MO)

AI Summary

  • Core Issue: The Organization failed to reconcile certain patient service revenues in the period 4 provider relief fund report.
  • Impacted Requirements: Reporting requirements under 45 CFR 75.342 were not met due to inaccuracies in financial information.
  • Recommended Follow-Up: Update policies and procedures to ensure all federal grant reports are based on complete and accurate data.

Finding Text

Provider Relief Funds CFDA No. 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement – Reporting (45 CFR 75.342) Condition – The Organization is required to prepare and submit period 4 provider relief fund reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs – None Context – The period 4 provider relief fund report was tested. The Organization selected option 1 to report lost revenues based on quarterly actual amounts. Certain quarterly patient service revenues reported to HHS could not be reconciled to supporting information. Effect – Errors were identified in quarterly Total Revenue/Net Charges from Patient Care reported to HHS; however, when these errors are considered, the Hospital’s total Provider Relief Fund payments applied to lost revenues did not change from what was originally reported in period 4. Cause – The Hospital did not update certain supporting files used to prepare the Provider Relief Fund report(s) for year-end closing adjustments. Identification as a repeat finding – Is a repeat finding. See 2021-003. Recommendation – Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information.

Corrective Action Plan

The Organization has reconciled the Total Revenue/Net Charges from Patient Care to the audited financial statements. The Organization does not have additional reporting responsibilities for the Provider Relief Funds; however, will maintain internal documentation of its Total Revenue/Net Charges from Patient Care should the support be requested.

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
93.498 PROVIDER RELIEF FUND $1.65M
93.697 COVID-19 TESTING FOR RURAL HEALTH CLINICS $241,369
93.301 SMALL RURAL HOSPITAL IMPROVEMENT GRANT PROGRAM $11,359
93.461 COVID-19 TESTING FOR THE UNINSURED $926