Finding Text
2022 ? 002 Federal agency: U.S. Department of Health and Human Services (HHS) Federal program title: Provider Relief Fund CFDA Number: 93.498 Type of Finding: Significant Deficiency in Internal Control over Compliance and Compliance Criteria or specific requirement: Performance and Financial Performance Monitoring 45 CFR ?75.342 Condition: North Olympic Healthcare Network?(the Organization) is required to prepare and submit period 1 provider relief fund reporting using accurate financial information and in a manner that is compliant with the guidelines set forth by HHS. A portion of the financial information included in the report calculations was not in compliance with the reporting guidelines. Questioned costs: None. Context: The Organization selected for reporting period 1 Option 2, a comparison of actual to budgeted results by quarter. Option 2 required for the time period, quarter 1 of calendar year 2020 through quarter 2 of calendar year 2021 the use of budgeted results from a budget approved prior to March 27, 2020. A portion of quarter 2 of calendar year 2020 through quarter 2 of calendar year 2021 were not from a budget approved prior to March 27, 2020. Cause: The Organization did have an approved budget prior to March 27, 2020 for quarter 1 2020, the time period that calculated lost revenue was used to meet the terms and conditions of the Organization?s PRF award. Effect: The use of calendar quarter budgets that were not approved prior to March 27, 2020 resulted in the a calculation of lost revenue available for a future time period that is not in compliance with the program. Repeat finding: No. Recommendation: Management should implement procedures to ensure the lost revenue is calculated and reported using an option that is appropriate for any future periods and revise the lost revenue amounts on any subsequent filings, if applicable. Views of responsible officials: The Organization understands the context and effect of the audit finding. However, the first quarter of calendar year 2020 was from an approved budget and resulted in a lost revenue calculation that more than covered the Organization?s award. We believe we are compliant and would have been better suited selecting option 3. There are no plans to use the lost revenue calculated in period 1 going forward as there have been no additional awards of PRF to the Organization.