Finding 392099 (2021-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-04-02
Audit: 302244
Organization: Avita Health System (OH)

AI Summary

  • Core Issue: Galion Community Hospital's submission to the HHS portal lacked proper support and review, violating the Provider Relief Fund requirements.
  • Impacted Requirements: The submission did not comply with the Post Payment Notice, which mandates accurate reporting of unreimbursed expenses and lost revenue methodology.
  • Recommended Follow-Up: The System should thoroughly review all guidance from the awarding agency and ensure accurate reporting and support for future submissions.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19 - Provider Relief Fund Federal Award Identification Number and Year - N/A Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The Post Payment Notice of Reporting Requirements for Provider Relief Fund General and Target Distributions (the "Notice"), dated June 11, 2021, requires that unreimbursed COVID-19 expenses reported within the HHS reporting portal should be properly supported and reviewed for accuracy, and the lost revenue methodology utilized by the System should be reported accurately within the HHS portal submission. Condition - The information entered into the period one HHS portal submission for Galion Community Hospital was not adequately supported or reviewed in accordance with the terms and conditions of the PRF funding and the Notice. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Expenses and lost revenue entered into the period one portal submission for Galion Community Hospital were not adequately reviewed for accuracy and allowability prior to completion of the period one portal submission. After the report was submitted to HHS, the System decided to utilize lost revenues only to justify the expenditures reported on the schedule of expenditures of federal awards. Cause and Effect - The System did not review expenses and lost revenue compiled and reported within the period one portal submission for Galion Community Hospital, which resulted in expenses included in the report not being adequatly supported in accordance with the terms and conditions of the PRF funding and the Notice. Recommendation - The System should review all instructions and FAQs released by the awarding agency and should perform adequate review of the information reported to ensure reporting requirements are completed in accordance with the required regulations. Views of Responsible Officials and Corrective Action Plan - The System utilized lost revenue to support expenditures recognized on the Schedule. For future grant funds received, management will adequately review terms and conditions of the funding received and ensure allowable expense are properly supported and reviewed before completing the required reports.

Corrective Action Plan

Finding Number: 2021-004 Condition: The information entered into the period one HHS portal submission for Galion Community Hospital was not adequately supported or reviewed in accordance with the terms and conditions of the PRF funding and the Notice. Planned Corrective Action: The System utilized lost revenue to support expenditures recognized on the Schedule. For future grant funds received, management will adequately review terms and conditions of the funding received and ensure allowable expense are properly supported before completing the required reports. Contact person responsible for corrective action: Eric Draime, Vice President/CFO Anticipated Completion Date: June 30, 2024

Categories

Reporting Subrecipient Monitoring Material Weakness

Other Findings in this Audit

  • 392100 2021-005
    Material Weakness
  • 968541 2021-004
    Material Weakness
  • 968542 2021-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Covid-19 - Provider Relief Fund $13.97M