FAC Explorer

Finding 20087 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 19150
Organization: Cassia (MN)
Auditor: Cla

AI Summary

  • Core Issue: The Corporation mis-reported lost revenues in the PRF report, overstating them by $113,771.
  • Impacted Requirements: Lost revenues must match actual quarterly revenues from 2019, as per the Terms and Conditions.
  • Recommended Follow-Up: Management should verify that lost revenues in future submissions align with internal financial statements.

Finding Text

Criteria or specific requirement: As outlined in the Terms and Conditions, Provider Relief Fund (PRF) payments may be used to prevent, prepare for, and respond to coronavirus, and for related expenses or lost revenues from health care services attributable to coronavirus. Lost revenues are to be calculated using actual quarterly revenue in the year of reporting compared to same quarterly revenues generated in 2019. Condition: The Corporation mis-reported lost revenues for one entity?s Period 4 PRF report. Context: During testing, it was noted that one quarter of lost revenues did not agree with the Corporation?s internal financial statements, which was not identified in the Corporation?s review of the reporting submission. This resulted in overstating the Corporation?s lost revenues for the period by $113,771. Cause: Management oversight. Effect: The Corporation mis-keyed one quarter of lost revenue when completing the reporting submission. Recommendation: We recommend management review the lost revenues included on the reporting submissions to ensure the lost revenues agree with the internal financial statements. Views of responsible officials: There is no disagreement with the audit finding. We have a significant amount of unused lost revenue to cover the mis-reported lost revenue and will adjust our next submission to account for this error.

Corrective Action Plan

Cassia and Support Corporations respectfully submits the following corrective action plan for the year ended December 31, 2022. Audit period: January 1, 2022 ? December 31, 2012 The findings from the schedule of findings and questioned costs are discussed below. The findings is numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF Health and Human Services 2022-001 COVID-19 Provider Relief Funding ? Assistance Listing No. 93.489 Recommendation: Management of Cassia and Support Corporations should review the lost revenues included on the reporting submissions to ensure the lost revenues agree with the internal financial statements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will implement a review process of the lost revenues that are being reported in the Provider Relief Fund reporting portal to ensure the lost reviews being reported tie to the internal financial statements. Name(s) of the contact person(s) responsible for corrective action: Kathy Youngquist, CFO Planned completion date for corrective action plan: September 2023 If there are any questions regarding this plan, please call Kathy Youngquist at 952-855-5009.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 596529 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $11.89M
93.498 Provider Relief Fund $3.50M