Finding 618467 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-01
Audit: 39259
Organization: Southwest Health System, Inc. (CO)
Auditor: Blue and CO LLC

AI Summary

  • Core Issue: There is a material weakness in reporting lost revenues related to COVID-19, with discrepancies between reported patient service revenues and audited financial statements.
  • Impacted Requirements: Compliance with HRSA reporting guidelines for lost revenues from Q1 2019 to Q4 2022 is not being met due to inadequate internal controls.
  • Recommended Follow-Up: The Health System should establish and implement internal control procedures to ensure accurate reporting on the HRSA portal moving forward.

Finding Text

MATERIAL WEAKNESS Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.498 ? COVID-19 ? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 2022-002: Reporting of Lost Revenues Attributable to Coronavirus Compliance Requirement(s): Reporting Criteria: Reporting requirements stipulate that when submitting information related to lost revenues attributable to coronavirus on the Health Resources and Services Administration (?HRSA?) Provider Relief Funding reporting portal, patient service revenues must be entered on a quarterly basis from the first quarter of 2019 through the fourth quarter of 2022. Condition ? During our testing of the underlying information supporting lost revenue reported by the Health System, we noted two years where patient service revenue per the filing did not reconcile to the audited financial statements. Cause ? The cause of this deficiency is due to the lack of internal controls to ensure proper reporting of lost revenues on the reporting portal. Effect ? The effect is misstatement of quarterly and annual revenues for 2022 and 2021 reported to HRSA on the reporting portal. Recommendation ? We recommend that the Health System implement internal control procedures to ensure proper reporting on the HRSA reporting portal in future reporting periods. Management?s Response ? We will implement internal control procedures to ensure proper reporting of lost revenues, as is required under the reporting guidelines stipulated by HRSA, in future reporting periods.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 42025 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $2.29M
93.697 Covid-19 Testing for Rural Health Clinics $400,000