Finding Text
COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria or specific requirement ? Reporting (45 CFR 75.342) Condition ? The District is required to prepare and submit Provider Relief Fund reports. The reports are to be prepared using accurate financial information and submitted by the deadline established. Questioned costs ? N/A Context ? The Period 2 Provider Relief Fund report was submitted and included a lost revenue calculation under option 1, which compared 2020 and 2021 revenue to 2019 revenue. Under option 1, quarterly revenues were required to be reported by payor class. The District incorrectly allocated quarterly revenue by payor class based on an inaccurate allocation of deductions to gross revenue by payor amounts. Effect ? The District did not properly report lost revenues by financial class. Cause ? Internal controls were not in place to ensure the District prepared the Period 2 provider Relief Fund report for the allocation of net patient service revenue by financial class. The District did not appropriately report revenue by payor class. Identification as a repeat finding, if applicable ? Not a repeat finding. Recommendation ? Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Views of responsible officials and planned corrective actions ? See attached corrective action plan for the District?s response to finding.