Finding Text
2022-001 Material Weakness Assistance Listing Number, Federal Agency, and Program Name: 93.498, U.S. Department of Health and Human Services, COVID-19 ? Provider Relief Fund. Criteria: The Provider Relief Fund (PRF) grant requires providers to prepare and submit a report on their use of funding utilizing various options, in addition to other information about the Organization that is relevant to administration of the award. Step five of the Steps on Reporting on Use of Funds section of the Provider Relief Fund Distributions and American Rescue Plan Rural Distributions Post- Payment Notice of Reporting Requirements dated October 27, 2022, requires recipients to apply PRF payments toward lost revenue using one of the three following options for calculation lost revenue: Option i: The difference between actual patient care revenues. Option ii: The difference between budgeted (approved prior to March 27, 2020) and actual patient care revenues. Option iii: Calculated by any reasonable method of estimating revenues. Condition: The Organization does not have a review process in place related to reviewing the PRF submissions. The Organization calculated its period 4 PRF payments applied towards lost revenue using option ii and attested to using budgets approved prior to March 27, 2020. Cause: The lack of review allowed for the completion of the period 4 filing without consideration of other allowable lost revenue calculation options and the inclusion of certain allowable expenses. Effect: There are no known or likely questioned costs related to this error in reporting since management is able to demonstrate sufficient lost revenues and expenses under allowable methods. See views of responsible officials and planned corrective action below. Recommendation: We recommend the Organization implement a process for reviewing the reporting submission before it is finalized. We also recommend the Organization update its lost revenue calculation methodology in the period 5 filing. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding and will implement a process to ensure review of the reporting submissions prior to finalization. Management has updated its method for calculating lost revenues in the period 5 submission by comparing 2020 budget to 2020 ? 2023 actual revenues. Management believes this is an allowable method under option iii.