Finding 20678 (2022-001)

2022-001: Significant Deficiency in Internal Control - Reporting Federal Program: COVID-19: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2021 Compliance Requirement: Reporting Questioned Costs: Not determinable Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Recipients of Provider Relief Funds (PRF) payments must also comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Condition and Context: The System did not complete the PRF Period 3 reporting in accordance with the U.S. Department of Health and Human Services guidance. The System inadvertently entered fiscal year Q1 and Q2 for Total Revenue/Net Charges from Patient Care (2022 Actuals) instead of calendar year Q1 and Q2. There was no impact on the lost revenues calculation as neither quarter had lost revenues. Effect: The amounts reported to Health Resources and Services Administration (HRSA) were not in accordance with established U.S. Department of Health and Human Services reporting guidance. Cause: An error in the lost revenue calculation for the 2022 quarters presented in the Period 3 report submission was not detected by the Sytem?s internal control process. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed and understood and that information used in preparation of the reports is reviewed, with errors addressed, prior to reporting. View of Responsible Officials: System management agrees with the finding.