Finding 611003 (2022-001)

2022-001: Lost Revenues Reporting Methodology Cluster: Not applicable Federal Granting Agency: Health Resources and Services Administration Award Name: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ? Period 2 Assistance Listing #: 93.498 Assistance Listing Title: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) RuralDistribution ? Period 2 Award Year: January 1, 2020 ? June 30, 2022 Criteria Step Six of the Steps on Reporting on Use of Funds section of the June 11, 2021 Provider Relief Fund(PRF) General and Targeted Distribution Post-Payment Notice of Reporting Requirements requires recipients that apply PRF payments toward lost revenues to use one of the following three options for calculating lost revenues: ? Option (i): difference between actual patient care revenues; ? Option (ii): difference between budgeted (prior to March 27, 2020) and actual patient carerevenues; or ? Option (iii): calculated by any reasonable method of estimating revenues Condition The Company calculated the portion of its Period 2 PRF payments applied toward lost revenues usingOption (iii); however, the Company completed its Period 2 PRF Reporting Portal submissions and attested to calculating lost revenues using Option (i). Cause The Company did not interpret the HRSA PRF Reporting instructions correctly therefore attested to usingOption (i) in its Period 2 PRF Reporting Portal submissions. Effect The Company incorrectly attested to the methodology utilized to calculate lost revenue in accordance withthe June 11, 2021 PRF General and Targeted Distribution Post-Payment Notice of Reporting Requirements. In addition, as required by the Health Resources & Services Administrator (HRSA) when Option (iii) is utilized, information used to support the methodology used was not provided to HRSA when the portal reporting was submitted. This is a repeat finding from the prior year. Questioned Costs None noted. Recommendation We recommend the Company contact the Health Resources & Services Administrator (HRSA) to determine any required corrective actions related to the incorrect reporting. Management?s Views and Corrective Action Plan Management?s response is included in ?Management?s Views and Corrective Action Plan? included at the end of this report.