Finding Text
2022-002 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). Condition: The Period 2 Provider Relief Fund report was submitted that had errors in the lost revenue calculation under Option 1. Questioned costs: Unknown Context: The District incorrectly excluded certain excluded Medicaid supplemental payments, and the District did not include negative contractual allowances when entering net revenue by payor into the reporting portal. Cause: The District did not properly calculate lost revenue in their calculation. Internal controls of compliance were not in place to ensure the District properly calculated prepared the report. Effect: Errors were made in reporting quarterly total revenue/net charges for patient care for 2019, 2020 and 2021. Lost revenue was not accurately reported. Identification as a repeat finding: Repeat finding, 2021-001 and 2021-002 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: See attached corrective action plan for the District?s response to finding.