Finding Text
Finding No. 2022-03 - Lost Revenue Reporting - Compliance Finding Criteria: Under the terms and conditions of the awards, accurate amounts that agree with the entity's financial records are required to be reported in the Provider Relief Fund report. Condition: The Period 4 Provider Relief Fund (PRF) report was submitted on March 31, 2023, based on preliminary internal financial statement net patient service revenues for the various quarters in 2022. The 4th quarter did not include final year-end balances after year-end post-closing and audit entries were posted to the trial balance. As a result, the PRF submission reported actual revenues for 2022 that were not accurate and did not agree to the audited financial statements. Context: This finding is consistent with prior years and due to timing of PRF reporting in advance of year end audited financial statements. Effect: The actual net patient service revenue in the audited financial statements for 2022 was lower by $3,253,834, which resulted in an understatement of lost revenue in the PRF report to be claimed in future periods by the same amount. The reporting did not impact the PRF funding received and retained by the auditee due to the error. Cause: Adjustments were made during the audit in conjunction with management that impacted the actual 2022 net patient service revenues after the reporting of the PRF report to HRSA for Period 4. Questioned Costs: None reported. Recommendation: We recommend the auditee update the revenue data for 2022 actual revenue in future HRSA PRF reporting periods. Views of Responsible Official: Management agrees with this finding. See corrective action plan.