Finding Text
Criteria: Assistance Listing Number 93.498 - COVID-19 Provider Relief Fund Condition: The Authority is required to prepare and submit Period 1 and Period 2 Provider Relief Fund reporting to the U.S. Department of Health and Human Services (HHS). The reporting is to be prepared using accurate financial information and submitted by the established deadlines. The Authority elected to obligate Period 1 Provider Relief Funds to lost revenues utilizing Option 1 based on 2019 actual revenues. Cause: The Authority's Net Revenue from Patient Charges includes a calculation to spread Medicaid supplemental payments equally to each month of the fiscal year because these payments are not received equally throughout the fiscal year but are earned equally throughout the fiscal year. This approach was applied accurately to all quarters through March 31, 2021. This approach was not applied to the last three quarters of 2021. The Authority's fiscal year is March 31 and the Period 2 reporting was due by March 31, 2022. The Authority did not have the ability to close the March 31, 2022 general ledger and spread the accrual-based Medicaid supplemental payments during fiscal year 2022 because of the March 31, 2022 reporting deadline. Effect or Potential Effect: Net Revenue from Patient Charges was understated by $637,571 in the second quarter of 2021, understated by $90,231 in the third quarter of 2021, and overstated by $363,342 in the fourth quarter of 2021. On the HHS Portal submission for Period 1 and Period 2, there was no Lost Revenue calculated or claimed in any quarter of 2021. The corrected amounts of Net Revenue from Patient Charges from the above amounts do not result in any Lost Revenue calculated or claimed in any quarter of 2021. Recommendation: We recommend a detail review of future submissions to ensure accuracy of calculations and reconciliations to supporting source documentation. Views of Responsible Officials: See corrective action plan.