Finding 608795 (2022-002)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2022-12-29
Audit: 27255
Organization: Spooner Health System (WI)

AI Summary

  • Core Issue: There was a failure to reduce Provider Relief Fund claims by amounts reimbursed through Medicare, leading to potential excess reimbursement.
  • Impacted Requirements: Provider Relief Fund guidelines state that costs reimbursed by other sources, like Medicare, must not be claimed again.
  • Recommended Follow-Up: Management should review and adjust reimbursement requests to align with Provider Relief Fund guidelines to prevent future issues.

Finding Text

2022-002 Allowable Costs Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Fund AL Number: 93.498 Award Period: April 1, 2020 ? June 30, 2020 (Period 1) and July 1, 2020 ? December 31, 2020 (Period 2) Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or specific requirement: Provider Relief Fund cannot be used to cover expenditures for which reimbursement is received. Condition and Context: During our testing we noted amounts reimbursed through the Provider Relief Fund were not reduced by the cost-based portion reimbursed by Medicare through the Medicare cost report. Cause: Management oversight in submitting costs for reimbursement without reducing for the amount that would be reimbursed through the Medicare cost report. Effect: Potential to receive excess reimbursement from the Provider Relief Fund. Questioned Costs: $245,075 Repeat finding: No Recommendation: We recommend that management review the Provider Relief Fund guidelines to make sure amounts requested for reimbursement are in line with the guidelines. Management?s Response: Management will review reporting requirements to ensure proper reporting in future periods. However, it is noted there was sufficient lost revenue to support the PRF distributions received.

Categories

Questioned Costs Internal Control / Segregation of Duties Allowable Costs / Cost Principles Cash Management Material Weakness Reporting

Other Findings in this Audit

  • 32351 2022-004
    Significant Deficiency
  • 32352 2022-003
    Material Weakness
  • 32353 2022-002
    Material Weakness
  • 608793 2022-004
    Significant Deficiency
  • 608794 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $4.24M