Finding Text
Department of Health and Human Services Federal Financial Assistance Listing/CFDA 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 2 TIN #742321009 Material Weakness in Internal Control Over Compliance and Material Noncompliance for Reporting Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Hilltop reported expenses reimbursed from other sources as Unreimbursed Expenses Attributable to Coronavirus in the Period 2 Department of Health and Human Services (HHS) report. Additionally, due to a formula error, Hilltop omitted certain patient revenues in Q2 ? Q4 of 2021 - actual in the HHS Period 2 Report. Cause: The lost revenues calculations and Period 2 report submitted to HHS not reviewed or approved by an individual separate from the preparer Effect: Without the secondary review and approval and lost revenue were not accurately calculated and the special report submitted was not accurately completed. Questioned Costs: None. The total amount reported should have included an additional $709,816 in revenue that was not included in the Q2 ? Q4 of 2021 - actual lost revenue calculation, which would decrease the lost revenues that were reported to the HHS. These errors in reporting did not result in any questioned costs because, based on testing, Hilltop reported lost revenues attributable to the impact of the coronavirus well in excess of the funding received when using the corrected calculation. As a result, there were no questioned costs. Context: All lost revenue periods were tested. Key line items were tested on the Department of Health and Human Services special report. Repeat Finding from Prior Years: No Recommendation: We recommend the Entity implement a control process which includes a secondary review and approval of the summarized final lost revenue calculation, and a secondary review and approval of required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the finding.