Finding Text
Section III - Federal Award Findings and Questioned Costs Finding 2022-002: Significant Deficiency in Internal Control over Compliance ? Reporting Federal Program: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 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 Questioned Costs: Not determinable Criteria: Provider Relief Fund (PRF) payment amounts (excluding Skilled Nursing Facility (SNF) and Nursing Home Infection Control Distribution payments) not fully expended on health care-related expenses attributable to coronavirus may be applied to patient care lost revenues, if applicable. Recipients may choose to apply PRF payments toward lost revenues using one of three options: Option i: of the difference between actual patient care revenues; Option ii: of the difference between budgeted and actual patient care revenues. Option iii: calculated by any reasonable method of estimating revenues. Condition: In the Organization?s reporting submissions, the Organization incorrectly reported lost revenues under Option ii rather than their selected Option iii. The Organization?s methodology for option iii was to use budget-to-actual patient revenues utilizing the fiscal year 2020, 2021, and 2022 budgets that cover calendar years 2021 and 2022 as the base period. Cause: The Organization has insufficient controls in place to identify and correct errors before reporting is completed. 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. 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. Views of Responsible Officials: Management of the Organization agrees with the finding.