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 75.342) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). Condition ? The Organization 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 3 PRF report was tested. The Organization utilized PRF distributions received on lost revenues incurred through June 30, 2022, calculated using Option i established by HHS. A revision to the fiscal year 2021 Medicare cost report settlement was reflected in the inappropriate quarter and the estimated 2022 Medicare cost report settlement was inaccurately reflected in the second quarter of 2022. Revenue received through a per member per month payment methodology was omitted from patient service revenue for fiscal year 2022 and quality incentives received were omitted from patient service revenue for all quarters. These errors, which represent two and fourteen reporting attributes, respectively, of the total 84 reporting attributes tested, do not impact PRF payments used for lost revenues in the current reporting period. Effect ? Errors were made in reporting quarterly revenue from patient care. Lost revenues were not accurately reported. Cause ? The Organization made errors when reconciling patient service revenue to financial records and adjusting to account for revenue in the appropriate quarters. Identification as a Repeat Finding ? Repeat finding ? Finding 2021-001 Recommendation ? Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information.