Finding Text
2022-002 Reporting
Criteria: The Center is required to submit Provider Relief Fund reports that account for and certify to the eligibility of expenses and lost revenues with HRSA.
Condition: During our audit, we reviewed the Period 4 Provider Relief Fund reporting, noting that it was submitted timely; however, it was not reviewed by an appropriate level of management prior to submission. As a result, we noted that the reporting was not completed accurately based on the Center’s operations. Through review of this reporting, it was noted that the Center reported unreimbursed “Healthcare Related Expenditures” of $993,538 and $0 for the years ended December 31, 2021 and 2022, respectively, which was used in the Period 4 reporting period. It was determined that this information reported was not accurate and instead the Center should have reported unreimbursed “Healthcare Related Expenditures” of $0 and $321,109 for the years ended December 31, 2021 and 2022 to be used in the Period 4 reporting period. In addition to the revised expenses, the Center had unused lost revenues of $4,288,165 of which $672,429 should have been used in the Period 4 reporting period.
Context: During 2022, the Center experienced nearly 100% turnover in its finance department. Part of this turnover included the Director of Grants Management who started in November 2022 and departed in May 2023. The Director of Grants Management completed the Period 4 report without review by an appropriate level of management with historical knowledge of the usage of these funds to allow for accurate reporting. During 2021 and 2022, the Center operated as a COVID-19 test site for the Central New York community and has experienced a significant decrease in visit volume as a result of the COVID-19 pandemic.
Cause: The incorrect reporting can be attributed to turnover in staffing and lack of review of reporting by an individual with the appropriate knowledge prior to submission.
Effect: The Center is at risk of having Period 4 Provider Relief Funds returned to HRSA as the Center was not in compliance with the Provider Relief Fund compliance supplement. Recommendation: We recommend that the Center review and strengthen current procedures regarding review of reporting by an appropriate level of management prior to submission. Additionally, we recommend that the Center work with HRSA to take corrective action to rectify this reporting matter.
Views of management and planned corrective action: The accounting department had a significant turnover during 2022 which cause reporting errors go unreviewed. Since 2023, the appropriate accounting team has been assembled and proper policies, procedures, authorization, segregation of duties and reviews have been put in place so that going forward this will not be an issue. All reporting is now being reviewed prior to submission so that reporting requirements including proper period and proper information is reported correctly. We have proactively reached out to the PRF Reporting Help Desk to correct the reporting and communicated the noted reporting corrections needed.