Finding 16544 (2022-001)

2022-001 - Department of Health and Human Services Federal Assistance Listing/CFDA 93.498 COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 1 TIN #82-0207116 Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Hospital excluded certain amounts from the amounts reported as ?2021 actuals (calendar year)? patient care revenue within the Period 4 Department of Health and Human Services report submission process. Cause: Management?s review of the schedule did not identify that there was an adjustment to net patient revenue that was not incorporated within the 2021 actuals. Effect: Key line items for reporting related to lost revenue were materially misstated. No lost revenue was claimed during the current period. Questioned Costs: None reported. Context/Sampling: Key line items were tested on the Period 4 Department of Health and Human Services special report. Repeat Finding from Prior Years: No. Recommendation Management should enhance its internal controls over federal award compliance and review to ensure proper reporting of revenue. Views of Responsible Officials: Management agrees with the finding.