Finding Text
Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing No. 93.498 U.S Department of Health and Human Services Criteria or Specific Requirement ? Reporting (45 CFR 75.324) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). Condition ? The Health Center is required to report on the use of Provider Relief Fund (PRF) distributions received. This report is to be prepared using accurate financial information following the accrual basis of accounting and other guidance issued by the U.S. Department of Health and Human Services (HHS). Questioned Costs ? Unknown Context ? The Period 2 PRF report was tested. The Health Center selected option one to report lost revenues based on quarterly actuals. Of a total of 84 reporting attributes tested, 7 exceptions were noted in which the amounts reported did not agree to the underlying supporting documentation. In addition, certain patient service revenue components, including 340b pharmacy revenue, were omitted from the lost revenue calculation. Effect ? Errors were made in calculating quarterly revenue from patient care used in lost revenue reporting. Cause ? The Health Center did not include certain patient service revenue components when completing their lost revenue calculation and certain quarterly amounts included in the report did not agree back to supporting documentation. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? Policies and procedures over federal grant reporting should be monitored to ensure reports are prepared using complete and accurate information. Views of Responsible Officials and Planned Corrective Actions ? We agree there were errors in the calculation of lost revenue. The PRF guidance on reporting changed/updated several times over the course of 2 years and some requirements were missed right before the reporting was due. However, the organization?s eligibility did not change and the funded amount was fully supported by the actual loss of revenue calculation required by DHHS. Management will closely monitor future grant reporting. Contact person responsible for corrective action: Eden Ballatan, CFO Anticipated Completion Date: 3/31/2023