Finding Text
Finding #2023-002
Program Information
Federal Program: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
ALN: 93.498
Federal Agency: United States Department of Health and Human Services
Pass-through entity: None
Criteria
Under the requirements of 2 CFR 200.303 the entity must establish and maintain effective internal controls over federal awards that provides reasonable assurance that the entity is in compliance with federal statues, regulation, and terms and conditions of the Federal award. Under the requirements of the PRF program reporting for an entity that uses option 1 to calculate lost revenues, the entity must report quarterly actual revenue/net charges from patient care.
Condition
For ALN 93.498, the actual total revenues for the quarter ended June 30, 2023 reported on the PRF period 5 submission do not agree to underlying accounting records for fiscal year ended June 30, 2023 by approximately $1,768,704. This difference affects the amount of revenues reported but does not affect other data within the report, including the amount of PRF funds received that were utilized.
Cause
The related control in not designed with sufficient precision to ensure actual quarterly total revenues
reported agree to underlying accounting records.
Effect
The amount reported for the actual total revenues for the quarter ended June 30, 2023 on the PRF period 5 submission does not agree to underlying records by approximately $1,768,704.
Questioned Costs
None
Sample Statistically Valid
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding
No
Recommendation
We recommend that management revise their control to ensure that reported actual quarterly total revenues agree to underlying accounting records.
Views of Responsible Officials
Management of the Association agrees with the findings contained herein.