Finding Text
2022-002: Significant Deficiency in Internal Control - Reporting Federal Program: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2021 Compliance Requirement: Reporting Questioned Costs: Not determinable Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Recipients of Provider Relief Funds (PRF) payments must also comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Condition and Context: The Corporation did not complete the PRF reporting in accordance with the U.S. Department of Health and Human Services guidance. The Corporation incorrectly used gross patient revenue from reports under incorrect parameters. Such amounts were used in the calculation of lost revenues. The adjustments needed within the PRF report to correct the errors decreased year over year lost revenues from $9,417,623 to $7,949,685 on total distributions of PRF funding of $270,468. Effect: The amounts reported to Health Resources & Services Administration (HRSA) were not in accordance with established U.S. Department of Health and Human Services reporting guidance. Cause: An oversight by management led to the incorrect reports being used to calculate lost revenue on the PRF Phase 1 submission. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed and understood, and that information used in preparation of the reports is reviewed, with errors addressed, prior to reporting.