Finding Text
Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing No. 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement ? Reporting (45 CFR 75.342) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116 136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) Condition ? The Organization is required to prepare and submit period one provider relief fund reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned costs ? Unknown Context ? The period one provider relief fund report was tested. The Organization selected option three to report lost revenues based on quarterly actual amounts. The Organization incorrectly included the Medicaid adjustments in the wrong direction in order to tie out total patient revenue and certain other Medicaid adjustments were not allocated throughout the fiscal year. Error resulted in overstated lost revenues. However, once the lost revenue calculation was corrected, the Organization was able to show they had sufficient lost revenues and did not impact the recognition of Provider Relief Funds. Effect ? Errors were made in reporting quarterly Total Revenue/Net Charges from Patient Care. Lost revenues were not accurately reported. Cause ? The Organization did not correctly enter the Medicaid adjustments to their lost revenue calculation which resulted in overstated lost revenue. Identification as a repeat finding ? Not a repeat finding Recommendation ? Policies and procedures over federal grant reporting should be modified to ensure reports are accurate and agree to the final adjusted financial statements.