Finding 596715 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-06-29
Audit: 19849
Organization: Bristol Hospital, Incorporated (CT)

AI Summary

  • Core Issue: The Hospital failed to report PRF payments correctly, including non-incremental expenses of $3,719,680.
  • Impacted Requirements: Reporting did not comply with HHS guidance, affecting the reported lost revenues.
  • Recommended Follow-Up: Management should establish procedures to review current guidance and ensure accurate reporting by the Chief Financial Officer.

Finding Text

Finding 2022-001: Significant Deficiency in Internal Control Over the Major Federal Program Assistance Listing Number: 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: N/A Award Number: N/A Award Year: 2020 Compliance Requirement: Reporting Criteria: Recipients of Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution (PRF) payments must 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/Context: The Hospital did not complete the PRF reporting in accordance with the HHS guidance. The Hospital inadvertently reported non-incremental expenses of $3,719,680 for mortgage/rent and insurance. As a result, the total unused lost revenues in period 2 would change from $13,200,472 to $9,480,792. Effect: The amounts reported to Health Resources & Services Administration (HRSA) were not in accordance with established HHS reporting guidance. Questioned Costs: None Cause: An oversight by management to include non-incremental expenses. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed, and that information used in preparation of the reports is reviewed. Views of Responsible Officials: The Hospital agrees with the finding. Management will implement procedures to ensure that the most recent guidance is reviewed, and that information used in the preparation of the reports is reviewed by the Chief Financial Officer. The Hospital will not include non-incremental expenses in future reports. The Hospital has sufficient unused lost revenue to cover the expenses noted above.

Categories

Internal Control / Segregation of Duties Reporting Significant Deficiency

Other Findings in this Audit

  • 20273 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $10.94M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3.11M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.07M
93.268 Immunization Cooperative Agreements $3,362