Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19 - Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Award Identification Number and Year - N/A, 2022 Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - The U.S. Department of Health and Human Services (HHS) requires the nonfederal entity to report lost revenue and expenses incurred in order to support that funding received has been used for allowable activities. HHS has provided specific guidance in the October 27, 2022 Post Payment Notice on how to complete the required reporting of lost revenue and qualifying expenses in the reporting portal. Condition - The Health System's reporting submission for Lima Memorial Professional Corporation did not follow the HHS' guidelines related to the reporting of lost revenue for the Period 4 reporting period. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Quarterly revenue amounts reported in the Period 4 portal submission did not follow the guidance prescribed by HHS. The HHS' guidance for portal submission requires each quarter's budget and actual revenue amounts to be entered by payor. The Health System hard entered the total remaining calculated lost revenue amount rather than entering the quarterly budgeted and actual amounts that would have resulted in the portal calculating the lost revenue. Cause and Effect - Appropriate review of the Lima Memorial Professional Corporation reporting submission was not completed to ensure the report followed the required guidelines. As a result, the revenue for the quarters were improperly stated within the Lima Memorial Professional Corporation Period 4 reporting submission by overstating lost revenue. There was no impact on the SEFA, as the lost revenue calculation would properly support the Period 3 and Period 4 PRF funding. Recommendation - We recommend the Health System implement controls, including levels of review, to ensure reports are completed in accordance with the HHS' guidelines. Views of Responsible Officials and Corrective Action Plan - The CFO will review all portal submissions to ensure the underlying lost revenue calculation and data input into the portal are for the correct entity. In addition, the CFO?s review will verify the portal submission data entry agrees to the underlying quarterly lost revenue calculation.