Finding 51035 (2022-001)

2022-001: Duplicated expenses reported within the Health Resources & Services Administration (?HRSA?) Provider Relief Fund Portal Program: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 Agency: Department of Health and Human Services (?HHS?) Health Resources and Services Administration (?HRSA?) Award Year: 1/1/2020-9/30/2022 Award Number: Not available Criteria Step Four of the Steps on Reporting on Use of Funds section of the June 11, 2021 Provider Relief Fund (?PRF?) General and Targeted Distribution Post-Payment Notice of Reporting Requirements requires recipients to report on expenses paid for with payments received through the General and Targeted Distribution payments. Reporting Entities that received $500,000 or more in aggregated PRF payments during each Payment Received Period are required to report on the use of the General and Other Targeted PRF payments in detailed categories of General and Administrative Expenses and Health Care- Related Expenses, by indicating the quarterly expenses reimbursed with the PRF payments. Condition The System reported total Health Care-Related Expenses of $7,403,539 (by calendar quarters Q1 2020 through Q2 2021) in the PRF Reporting Portal Submission for Period 1. The Care New England Health System (the ?System?) duplicated the reporting of these expenses (by calendar quarters Q1 2020 through Q2 2021) in the PRF Reporting Portal Submission for Period 2 and Period 3. In addition, incremental expenses from PRF Reporting Period 2 were duplicated in Period 3. Cause The System did not interpret the HRSA PRF Reporting instructions correctly, believing each portal filing should include all cumulative expenses claimed. This error was not identified through their review procedures prior to submission.. Effect The duplicate reporting of expenses in the PRF Portal Submission for Period 2 and Period 3 resulted in an incorrect calculation of the Total Reportable Other PRF remaining to be applied to Lost Revenues amount in the PRF Financial Summary section of the PRF Portal Submission for Period 2 and Period 3. The calculated amount of PRF Remaining to be applied to Lost Revenues in the PRF Portal Submission for Period 2 was calculated as $3,665,229 whereas the amount would have been $11,068,758 if the expenses had not been duplicated in the Period 2 PRF Portal Submission Reporting. In Reporting Period 3, the calculated amount of PRF Remaining to be applied to Lost Revenues in the PRF Portal Submission for Period 3 was $15,802,011 where-as the amount would have been $24,334,141 if the expense had not been duplicated in the Period 3 PRF Portal Submission Reporting. Recommendation We recommend the System contact the Health Resources and Services Administrator to determine any required corrective actions related to the incorrect reporting. We also recommend the System enhance their understanding of the reporting requirements and strengthen their review process in place to check for this issue prior to submission of future reports. Management?s Views and Corrective Action Plan Management?s response is included in ?Management?s Views and Corrective Action Plan? included after the Summary Schedule of Prior Audit Findings and Status.