Finding 29496 (2022-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-27

AI Summary

  • Core Issue: The Hospital lacks proper internal controls for reporting COVID-19 Provider Relief Funds, leading to inconsistent measurement of lost revenues.
  • Impacted Requirements: Compliance with HHS guidelines for reporting expenses and lost revenues related to COVID-19 funding is not being met.
  • Recommended Follow-Up: Implement controls to ensure accurate reporting in line with HHS guidelines and update calculations for lost revenues consistently.

Finding Text

2022 ? 001 Federal agency: U.S. Department of Health and Human Services Other Programs Federal program title: COVID 19 Provider Relief Funding Assistance Listing Number: 93.498 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: Period 4 Type of Finding: Significant Deficiency in Internal Control over Compliance Compliance Requirement: Reporting Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for expenses or lost revenues that are attributable to coronavirus. Condition: During our testing, we identified the Hospital did not have internal controls in place to ensure reporting was completed in accordance with HHS guidelines. Questioned costs: None Context: As reflected in the prior year schedule of findings, item 2021-002 was identified related to the Hospital?s calculation of lost revenues not being measured consistently between budgeted and actual amounts when reporting Period 1 lost revenues. For Period 4 the calculation of lost revenues was not updated and included the same inconsistent measurement between budgeted and actual amounts. Cause: For Period 4 reporting management identified that they were not aware that they needed to update the previous reporting of lost revenues. Upon notification management attempted to correct the reporting after the original submission but were unable to access the inputs to correct. Effect: The calculation of lost revenues continues not to be measured inconsistently as previously identified. However, regarding the Period 4 payments management has reported sufficient expenses to support the amount of COVID-19 Provider Relief Fund and American Rescue Plan Rural Distributions received. Repeat Finding: Yes Recommendation: We recommend the Hospital design controls to ensure that reporting is completed in accordance with latest HHS guidelines. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

2022 ? 001 COVID-19 Provider Relief Funding Recommendation: We recommend the Hospital design controls to ensure that reporting is completed in accordance with latest HHS guidelines. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Management has reported Covid-19 expenses to cover the Period 4 funding received. Management has additionally identified additional Covid-19 expenses that were not included with the Period 4 submission that they believe would offset the issue identified above. Action taken in response to finding: The Hospital will ensure that controls are put into place to ensure lost revenue reporting is completed in accordance with HHS guidelines. Name of the contact person responsible for corrective action: Carli Taylor, CFO. Planned completion date for corrective action plan: October 1, 2023.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 605938 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $14.20M
93.498 Provider Relief Fund $1.22M
93.697 Covid-19 Testing for Rural Health Clinics $50,000