Finding 28102 (2022-001)

2022-001 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Funds (PRF) and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 Award Period: January 1, 2022 through December 31, 2022 Type of Finding: Compliance and Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Provider Relief Funds are required to be reported through the Provider Relief Fund Reporting Portal and include key line items for Nursing Home Infection Control Expenses, Other Provider Relief Fund Expenses, and Calculation of Lost Revenues Attributable to Coronavirus. Condition: Revenues related to a new payor were excluded from the lost revenue calculation on the AMH Reporting submission. However, the Hospital had sufficient other lost revenues to cover any Provider Relief Funds received. Questioned costs: None Context: During our testing, it was noted that the Organization reported incorrect lost revenues for the Hospital on the reporting submission as they incorrectly excluded some eligible patient revenue. However, the Hospital had sufficient other lost revenues and expenses to cover any Provider Relief Funds received. Cause: Controls were not in place to identify that the reporting submission excluded Hospital revenue. Effect: Information included in the submission could be incorrect and lost revenues could be overstated. Recommendation: We recommend the organization review the lost revenue calculation in future periods to ensure that hospital revenue is evaluated and reported correctly. Views of responsible officials: There is no disagreement with the audit finding.