Finding 20093 (2022-001)

Material Weakness
Requirement
ABL
Questioned Costs
-
Year
2022
Accepted
2022-10-09
Audit: 19443
Auditor: Forvis LLP

AI Summary

  • Core Issue: The Health Center submitted inaccurate financial information in its Provider Relief Fund report, leading to errors in reported lost revenues.
  • Impacted Requirements: Reporting must comply with 45 CFR 75.342 and related cost principles, ensuring accurate and complete documentation.
  • Recommended Follow-Up: Update policies and procedures for federal grant reporting to guarantee that all reports are based on verified and accurate financial data.

Finding Text

Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement ? Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) Condition ? The Health Center is required to prepare and submit period one provider relief fund (PRF) reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned costs ? Unknown Context ? In the period one report, the Organization supported the provider relief funds received utilizing option iii for calculating lost revenues. However, the Organization?s submitted report did not agree to supporting documentation for 3 of the 14 report attributes tested. Effect ? Errors were made in reporting lost revenues. Cause ? The Organization did not reconcile supporting documentation for patient service revenue and the budget to the submitted report. Identification as a repeat finding ? Not a repeat finding 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 ? In completing the annual financial audit for Siouxland Community Health Center (SCHC), and in particular the Provider Relief Fund dollars in the amount of $463,105 received in April and June 2020, staff at FORVIS determined SCHC had made an error in reporting its use of funds. SCHC chose Option 3, which included a comparison between actual lost patient revenue and budgeted patient revenue for each of the six quarters from 1/1/20 to 6/30/21, and inadvertently entered incorrect actual dollars spent compared to budgeted dollars. The total amount of lost revenue reported was originally reported as $1,542,234, but the revised amount is $1,340,781, a difference of $201,453. This error did not result in any funds be returned. Jan Anderson, CFO, corrected the report on the Provider Relief portal in July 2022.

Corrective Action Plan

In completing the annual financial audit for Siouxland Community Health Center (SCHC), and in particular the Provider Relief Fund dollars in the amount of $463,105 received in April and June 2020, staff at FORVIS determined SCHC had made an error in reporting its use of funds. SCHC chose Option 3, which included a comparison between actual lost patient revenue and budgeted patient revenue for each of the six quarters from 1/1/20 to 6/30/21, and inadvertently entered incorrect actual dollars spent compared to budgeted dollars. The total amount of lost revenue reported was originally reported as $1,542,234, but the revised amount is $1,340,781, a difference of $201,453. This error did not result in any funds be returned. Jan Anderson, CFO, corrected the report on the Provider Relief portal in July 2022.

Categories

Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 596535 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $4.63M
93.224 Covid-19 - Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.97M
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.12M
93.498 Covid-19 - Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $491,853
93.461 Covid-19 Testing for the Uninsured $406,147
93.217 Family Planning_services $206,981
93.940 Hiv Prevention Activities_health Department Based $104,139
14.241 Housing Opportunities for Persons with Aids $95,262
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $86,769
93.917 Hiv Care Formula Grants $60,858
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $47,256
93.110 Maternal and Child Health Federal Consolidated Programs $31,400
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $29,975
93.918 Covid-19 - Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $20,865
93.526 Covid-19 - Affordable Care Act (aca) Grants for Capital Development in Health Centers $14,000
93.268 Immunization Cooperative Agreements $9,084
14.241 Covid-19 - Housing Opportunities for Persons with Aids $2,403