Finding 61391 (2022-001)

Award Year: January 1, 2020 to December 31, 2021 Pass-through: Not applicable Criteria Step Four of the Steps on Reporting on Use of Funds section of the June 11, 2021 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) General and Targeted Distribution Post-Payment Notice of Reporting Requirements requires recipients to report on expenses paid for which payments were received through the General and Targeted Distribution payments. Reporting Entities that received $500,000 or more in aggregated PRF payments during each Payment Received Period are required to report on the use of the General and Other Targeted PRF payments in detailed categories of General and Administrative Expenses and Health Care-Related Expenses, by indicating the quarterly expenses reimbursed with the PRF payments. Condition The Company reported total Health Care-Related Expenses of $2,355,345 (for calendar quarters Q1 2020 and Q2 2020) in the PRF Reporting Portal Submission for Period 1 for The Children?s Hospital of Philadelphia. The Company duplicated the reporting of these expenses (for calendar quarters Q1 2020 and Q2 2020) in the PRF Reporting Portal Submission for Period 2 for the same entity. Cause The Company did not interpret the HRSA PRF Reporting instructions correctly, thereby duplicating the reporting of the Other PRF Expenses of $2,355,345 in both the Period 1 and Period 2 PRF Reporting Portal Submissions. Effect The duplicate reporting of expenses in the PRF Portal Submission for Period 1 and Period 2 resulted in an incorrect calculation of the Total Reportable Other PRF remaining to be applied to Lost Revenues amount in the PRF Financial Summary section of the PRF Portal Submission for Period 2. The calculated amount of PRF Remaining to be applied to Lost Revenues in the PRF Portal Submission for Period 2 was calculated as $102,826,364 whereas the amount would have been $105,181,709 if the expenses had not been duplicated in the Period 2 PRF Portal Submission Reporting. The total amount of PRF payments utilized in the period did not change, however, the amounts reported as Health Care-Related Expenses and PRF applied to Lost Revenues for the period were overstated and understated, respectively, by the $2,355,345 noted above. Questioned Costs None noted as the Company had sufficient lost revenue to apply against the provider relief funding received. Recommendation We recommend the Company contact the Health Resources and Services Administration to determine any required corrective actions related to the incorrect reporting.Management?s Views and Corrective Action Plan Management?s views and corrective action plan is included at the end of this report after the summary schedule of prior audit findings and status.