Finding Text
Identification: 93.498 United States Department of Health and Human Services, COVID-19 Provider
Relief Fund; Noncompliance Finding/Material Weakness; Allowable Costs.
Criteria: Allowable Costs (Public Law 116-136).
Condition: Allowable costs related to the program are expenses or losses that were not reimbursed from
other sources or that other sources were not obligated to reimburse.
Cause: The Hospital did not reduce COVID-19 related costs claimed under the PRF program for costbased
reimbursements received from the Medicare program for the COVID-19 related expense.
Effect: The amount reported as COVID-19 related costs to the PRF program was overstated.
Questioned costs: $539,318, as estimated at the applicable reimbursement percentage for Medicare.
However, as noted in finding 2021-001, the Hospital understated lost revenues by $236,546 and together
with the remaining expenditures and reported lost revenues, the Hospital had sufficient expenditures and
lost revenues to support one hundred percent of the PRF grant funding received
Context/Perspective: Allowable costs were not reduced for cost-based reimbursement from the Medicare
program.
Repeat Finding: N/A
Recommendations: Refer to the HHS Provider Relief Fund General and Targeted Distribution Post
Payment Notice of Reporting Requirements and the most recently distributed Provider Relief Fund
frequently asked questions, which provide details on requirements related to the program.
Views of Responsible Officials: The Hospital will ensure the costs included in all subsequent Provider
Relief Fund reporting is reduced for amounts reimbursed by other sources.
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