Finding 576690 (2022-001)

MATERIAL WEAKNESS Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.498 – COVID-19 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 2022-001: Improper Reporting of Lost Revenues on Phase 4 PRF Submission Compliance Requirement(s): Reporting Criteria: Reporting requirements stipulate that when submitting information related to lost revenues attributable to coronavirus on the Health Resources and Services Administration (“HRSA”) Provider Relief Funding reporting portal, patient service revenues must be entered on a quarterly basis from the first quarter of 2019 through the fourth quarter of 2022. Condition – Improper reporting of lost revenues on Phase 4 PRF submission: When submitting information related to Phase 4 of the Provider Relief Fund (“PRF”) program to HRSA, various quarters were not corrected from the incorrect prior year submission, resulting in an overstatement of lost revenues reported in THS’s official filing. Cause – The cause of this deficiency is due to the lack of internal controls to ensure proper reporting of lost revenues on the reporting portal. Effect – The effect is an overstatement of lost revenues reporting to HRSA on the reporting portal. Recommendation – We recommend that THS implement internal control procedures to ensure proper reporting on the HRSA reporting portal in future reporting periods. Management’s Response – We will implement internal control procedures to ensure proper reporting of lost revenues, as is required under the reporting guidelines stipulated by HRSA, in future reporting periods. We do not believe the overstatement of lost revenues resulted in an overstatement of THS’s received allowable funds to be utilized as part of the Provider Relief Fund program.