Finding Text
Finding 2022-001 ? Reporting ? Material Weakness in Internal Control Over Compliance Federal Program: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (Assistance Listing #93.498) Federal Agency: U.S. Department of Health and Human Services Award Year: 2021 Criteria: Under the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program, providers are required to submit reporting to the Health Resources Services Administration (HRSA) in a timely manner as well as submit reporting that is accurate and can be substantiated. Condition: During our testing of the required report for Period 4, it was identified the reporting submission was submitted subsequent to the deadline. During our testing of the reporting of lost revenues that were reimbursed by Provider Relief Fund distributions for Periods 3 and 4, it was identified the reporting submission contained calculation errors that resulted in a total overstatement of lost revenues reported for a total of $7.2 million. Cause: Sansum Clinic has experienced business and staffing disruptions in recent fiscal years. This resulted in a lack of sufficient review over submissions and led to untimely submission of Period 4 reporting and the lost revenues reporting errors. This situation, coupled with the evolving nature of the specific terms and conditions of the Provider Relief Fund program, is the primary causes of the condition noted above. Effect or potential effect: Due to the above noted business and staffing disruptions, budgeted adjustments were not reflected in the Period 3 and Period 4 reporting. However, the lost revenue amounts carried over from the Periods 1 and 2 Provider Relief Fund reporting demonstrate a significant amount of cumulative unused lost revenue that would exceed the overstatement noted as a result of the Period 3 and 4 reporting errors. Questioned costs: None to be reported. Context: During the fiscal year ended December 31, 2022, health care providers were subject to staffing shortages as well as increased operational challenges as a result of the COVID-19 pandemic. As a result, Sansum Clinic did not have sufficient staffing levels to perform precise reviews to validate the lost revenue calculation subject to Provider Relief Fund reporting. Identification as a repeat finding, if applicable: This is not a repeat finding.