Finding 38255 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-06-27

AI Summary

  • Core Issue: The District failed to accurately report lost revenues by financial class in the Provider Relief Fund report.
  • Impacted Requirements: Reporting must be based on accurate financial information and submitted by established deadlines (45 CFR 75.342).
  • Recommended Follow-Up: Update policies and procedures for federal grant reporting to ensure complete and accurate information is used in future reports.

Finding Text

COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria or specific requirement ? Reporting (45 CFR 75.342) Condition ? The District is required to prepare and submit Provider Relief Fund reports. The reports are to be prepared using accurate financial information and submitted by the deadline established. Questioned costs ? N/A Context ? The Period 2 Provider Relief Fund report was submitted and included a lost revenue calculation under option 1, which compared 2020 and 2021 revenue to 2019 revenue. Under option 1, quarterly revenues were required to be reported by payor class. The District incorrectly allocated quarterly revenue by payor class based on an inaccurate allocation of deductions to gross revenue by payor amounts. Effect ? The District did not properly report lost revenues by financial class. Cause ? Internal controls were not in place to ensure the District prepared the Period 2 provider Relief Fund report for the allocation of net patient service revenue by financial class. The District did not appropriately report revenue by payor class. Identification as a repeat finding, if applicable ? Not a repeat finding. 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.

Corrective Action Plan

Corrective Action Plan for Finding 2022-002 We are in receipt of the ?Findings Required to be Reported? by Uniform Guidance, regarding reporting. Management agrees with the finding and will perform a detailed review of the reporting requirements in accordance with the final guidelines set by HRSA. As deemed necessary, the District will modify policies and procedures over federal grant reporting. Management has completed an analysis and determined that while the net patient service revenue by financial class was improperly allocated, the calculated lost revenue that the District reported still exceeds the Provider Relief Funding received. Further, the information submitted for Period 2 was the exact same information submitted and audited for Period 1, which did not have any findings during the September 30, 2021 single audit. Grant Trollope, ACFO, is responsible to oversee and implement the corrective action plan. This corrective action plan will be implemented by September 30, 2023.

Categories

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 38254 2022-001
    Material Weakness
  • 614696 2022-001
    Material Weakness
  • 614697 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.00M
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $2.66M
93.461 Hrsa Covid-19 Claims Reimbursement for the Uninsured Program and the Covid-19 Coverage Assistance Fund $2.63M
93.527 Grants for New and Expanded Services Under the Health Center Program $888,489