Finding 610066 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-04

AI Summary

  • Core Issue: The Hospital misreported patient care revenue due to a data entry error in the reporting process.
  • Impacted Requirements: Lack of effective internal controls as required by 2 CFR 200.303(a) led to inaccurate reporting.
  • Recommended Follow-Up: Management should enhance internal controls to ensure accurate revenue reporting for federal awards.

Finding Text

Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Hospital inadvertently miskeyed a number when reporting ?2022 actuals (calendar year)? patient care revenue within the Period 4 Department of Health and Human Services report submission process. Cause: The Hospital did not have an internal control process in place to ensure the reporting portal input field for the revenue was correct. Effect: The amount of ?2022 actuals (calendar year)? patient care revenue reported by the Hospital was $200,434,563 instead of $207,434,563. Questioned Costs: None reported. The Hospital used expenses to justify amounts received under the Provider Relief Fund and ARP for period 4 and did not utilize lost revenue. The amount reported by the Hospital for ?2022 actuals (calendar year)? patient care revenue was for informational purposes only and had no impact on the amount of funds earned by the Hospital. Context: Key line items were tested on the Period 4 Department of Health and Human Services report. The amount of ?2022 actuals (calendar year)? patient care revenue reported by the Hospital was $200,434,563 instead of $207,434,563. Recommendation: We recommend that management continue to monitor and enhance its internal controls over federal award compliance to ensure proper reporting of revenue. Views of Responsible Officials: Management agrees with the noted finding.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 33624 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $4.22M