Finding Text
ALN, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services (HHS), COVID 19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Award Identification Number and Year - N/A Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes; 2021-002 Criteria - The Post-Payment Notice of Reporting Requirements for Provider Relief Fund General and Target Distributions (the "Notice"), dated June 11, 2021, requires that the lost revenue methodology utilized by the Organization should be reported accurately within the HHS portal submission. Condition - The lost revenue methodologies reported in the Period 3 and Period 4 portal submissions were incorrect, as the report said the Organization used actual to actual (option i); however, an alternative method under option iii was actually utilized when calculating lost revenue. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - UCH reported that option i for calculating lost revenue was used; however, the UHC actually calculated lost revenue using option iii. Despite the reporting errors noted above, UCH reported enough lost revenue (using option iii) to cover all PRF distributions received in period 3 and period 4 combined. In addition, UCH provided support for testing that agreed, in total, to the lost revenue reported in its period 3 and period 4 portal submissions. No findings were noted during testing of lost revenue used to support the total expenditures reported on the SEFA; therefore, no questioned costs were identified. Cause and Effect - UCH did not review portal submissions for period 3 or period 4, as completed, to ensure they were in accordance with the Notice prior to the portal submissions and to ensure the lost revenue methodology was properly reported. The lack of understanding and review of the reporting instructions resulted in the improper reporting of the lost revenue methodology in both HHS portal submissions for periods 3 and 4. Recommendation - UCH should review all instructions and FAQs released by the awarding agency to ensure reporting requirements are completed in accordance with the required regulations. Views of Responsible Officials and Corrective Action Plan - Controls are now in place to ensure proper levels of review are implemented for federal program report submissions.