Finding Text
Section III - Federal Award Findings and Questioned Costs 2022-101 Reporting (Noncompliance, Significant deficiency) Federal Assisting Number and name: 93.498 COVID-19 Provider Relief Fund (PRF) Award numbers and years: N/A and 2020 Federal agency: U.S. Department of Health and Human Services Compliance requirements: Reporting Questioned Costs: Unknown Criteria: Provider Relief Fund requires the submission of the PRF Report. The calculation of Lost Revenue is one of the key line Items required to be tested from the PRF Report. CCHCI adopted to use actual revenue/net charges from patient care (the Actuals) for the calculation. Condition: The Actuals for the quarter ended March 2019 and June 2020 in the PRF Report were different from the CCHCI?s accounting system. In addition, CCHCI did not maintain proper supporting documentation to prove how the Actuals were calculated. Cause: CCHCI lacked proper internal control over preparing and reviewing the required reports. Effect: The lost of revenue was reported $178,340 less than what was calculated from the CCHCI?s accounting system. Recommendation: We recommend that reports are reviewed and approved by management team member who is not involved in the preparation.