Finding 32352 (2022-003)

Material Weakness

Requirement

Questioned Costs

Year

2022

Accepted

2022-12-29

Audit: 27255

Organization: Spooner Health System (WI)

Auditor: Cliftonlarsonallen LLP (cla)

AI Summary

Core Issue: There was a clerical error in the Provider Relief Fund report, leading to an incorrect claim of $1,709,045 in lost revenues.
Impacted Requirements: Compliance with reporting guidelines for the Provider Relief Fund, specifically regarding accurate reporting of lost revenues.
Recommended Follow-Up: Review and correct the reporting process to ensure compliance with guidelines and accurate calculations for future claims.

Finding Text

2022-003 Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Fund AL Number: 93.498 Award Period: April 1, 2020 ? June 30, 2020 (Period 1) and July 1, 2020 ? December 31, 2020 (Period 2) Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or specific requirement: Lost revenues can be claimed against the Provider Relief Fund during the reporting period. Condition and Context: During our testing we noted the Provider Relief Fund report was incorrectly completed and an additional $1,709,045 of lost revenues was reported. Cause: Clerical error in completion of the lost revenue reporting table in the Provider Relief Fund Period 1 report. Effect: Potential to overclaim lost revenue against the Provider Relief Fund. Questioned Costs: None identified. Repeat finding: No Recommendation: We recommend the System review the Provider Relief Fund reporting guidelines to make sure the amounts claimed are in line with the guidelines. We also recommend a review take place to make sure all amounts claimed are correctly calculated. Management?s Response: The System plans to correct the clerical error in the reporting of lost revenue of $1,709,045 in its Period reporting submission.

Corrective Action Plan

2022-003 Provider Relief Fund ? Assistance Listing No. 93.498 Recommendation: We recommend the System review the Provider Relief Fund reporting guidelines to make sure the amounts claimed are in line with the guidelines. We also recommend a review take place to make sure all amounts claimed are correctly calculated. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: During the onset of the COVID-19 pandemic and the distribution of the PRF dollars, there were many unknowns and many elements changed including criteria and timelines. The System will continue to review the PRF Terms and Conditions and understand these to the best of our knowledge. Based on the updated lost revenue numbers the System?s lost revenue would have increased from what was reported in the Phase 1 PRF report. Name(s) of the contact person(s) responsible for corrective action: Rebecca Busch, CFO Planned completion date for corrective action plan: We look to HRSA for guidance on how to correct the Period 1 report or will correct the error in future reporting periods. If the U.S. Department of Health and Human Services has questions regarding this plan, please call Rebecca Busch, CFO at 715-939-1732.

Other Findings in this Audit

32351 2022-004

Significant Deficiency
32353 2022-002

Material Weakness
608793 2022-004

Significant Deficiency
608794 2022-003

Material Weakness
608795 2022-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
93.498	Provider Relief Fund	$4.24M