Finding 498184 (2023-001)

-
Requirement
Activities Allowed/Unallowed
Questioned Costs
$1
Year
2023
Accepted
2024-09-25
Audit: 320933
Organization: Columbus Regional Hospital (IN)

AI Summary

  • Core Issue: The Hospital miscalculated lost revenues for the period from January 1 to June 30, 2023, leading to an overstatement of approximately $4,225,000.
  • Impacted Requirements: The miscalculation violates the allowed activities and reporting criteria for the Provider Relief Fund.
  • Recommended Follow-Up: The Hospital should review and correct PRF data related to lost revenues and ensure compliance with HRSA guidance.

Finding Text

Federal Program Name: COVID-19 – Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Agency: U.S. Department of Health and Human Services (HHS) Federal Assistance Listing Title and Number: COVID-19 – Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution, 93.498 Criteria or Specific Condition: Activities Allowed or Unallowed and Reporting Condition: Lost revenues for the period January 1, 2023 through June 30, 2023 from submission #5 were miscalculated. Questioned Costs: Yes. The dollar value associated with the lost revenues miscalculation is approximately $4,225,000. Context: The Hospital excluded a portion of its long-term care operations from its 2023 revenue, which appeared to reflect lost revenue. Effect: The Hospital overstated its calculated and reported lost revenue related to the January 1, 2023 through June 30, 2023 period, which should have been zero. Cause: Internal controls surrounding the review and submission of required reports were not adequately applied to ensure accuracy of required elements. Repeat Findings: No Recommendation: We recommend the Hospital evaluates relevant PRF data and information, including lost revenues, to HRSA under published guidance.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action: We concur. Management continues to evaluate the current controls related to reporting to ensure amounts are appropriately stated. Even if lost revenues for the January 1, 2023 through June 30, 2023 time period are appropriately reduced to zero, the Hospital had $7,855,000 of unused lost revenues following submission #4, well in excess of the $1,326,000 of funding received in Period 5 requiring substantiation.

Categories

Questioned Costs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $1.33M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $717,697