Finding 21721 (2022-001)

Criteria: Provider Relief Fund (PFR) payments may be applied to lost revenues attributable to coronavirus according to the Period of Availability of funding. However, lost revenues may not be duplicated. Condition: In the report submitted to the Health Resources & Services Administration (HRSA) PRF Reporting Portal for reporting Period 1 for Southern Illinois Hospital Services (SIHS), the Corporation indicated that SIHS is the parent of Southern Illinois Medical Services (SIMS), and that SIHS is reporting on SIM's general distribution payments. The SIHS PRF report for Period 1 included the revenue from SIMS in the lost revenue calculations. SIMS also submitted a report to HRSA in the PRF portal for Period 1 targeted distributions under SIM's TIN. The SIMS lost revenue calculation included the same SIMS revenue that was reported by SIHS. Cause: The Corporation did not have adequate internal controls in place over monitoring of compliance with the HHS reporting requirements for the HRSA PFR Reporting Portal. Effect: SIMS revenue was included in the PRF Reporting Portal submission for both SIHS and SIMS for Period 1. SIMS revenue used in the SIMS period 1 portal submission lost revenue calculation should have been excluded from the SIHS Period 1 portal submission lost revenue calculation. Questioned Costs: None. Context: One of the two reports submitted to HRSA for Period 1 included duplicate SIMS revenue in the lost revenue calculation. Repeat finding?: No. Recommendation: We recommend management establish internal controls over the accuracy of the reports submitted to federal awarding agencies. View of responsible officials of the auditee: Management agrees with the finding and recommendation.