FAC Explorer

Finding 509783 (2022-002)

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Requirement
A
Questioned Costs
-
Year
2022
Accepted
2024-11-22
Audit: 329516
Organization: Concepts of Independence, Inc. (NY)
Auditor: Pkf O'Connor Davies LLP

AI Summary

  • Core Issue: Revenue reported for Q2 2019 and 2020 was overstated due to not accounting for adjustments like bad debt.
  • Impacted Requirements: HRSA mandates reporting net patient revenue after adjustments for third-party payers and other factors.
  • Recommended Follow-Up: Management should familiarize themselves with PRF reporting requirements to ensure accurate future submissions.

Finding Text

Finding 2022-002: Revenue reported in PRF submission was overstated for 2nd quarter in 2019 and 2020 Criteria: HRSA requires entities to report quarterly net patient revenue under the PRF reporting requirements that is net of adjustments for all third-party payers, charity care adjustments, bad debt, and any discounts or adjustments. Condition: Management’s submission reported revenues for the second quarter of 2019 and the second quarter of 2020 gross of adjustments for bad debt. Cause: Management was unaware of the requirement to report net patient revenue net of adjustments. Effect: Amount reported for the 2nd quarter of 2019 and the 2nd quarter of 2022 were overstated resulting in lost revenues that were higher than actual. This had no effect on lost revenue recovered by the Organization since the corrected lost revenue remained higher than the amount provided by the PRF program Questioned Costs: None Repeat Finding: No Recommendation: We recommend that management become familiar with all PRF reporting requirements should additional funds become available. View of Responsible Official: See Corrective Action Plan

Corrective Action Plan

Finding No. 2022-002 1. Name of the contact person responsible for corrective action: Anthony G Caputo, CEO 2. Corrective action planned: Management will ensure that all future reporting will be prepared by an accounting official and be reviewed by a reviewer who is a level above the preparer. Management will also maintain evidence of the review process. 3. Anticipated completion date: The new processes and revenue reconciliation will be implemented immediately for any future PRF submissions. 4. If the client does not agree with the audit findings or believes corrective action is not required, include an explanation and specific reasons: We agree with finding No. 2022-002

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $4.23M