Finding Text
2022-001: Significant Deficiency in Internal Control - Reporting Federal Program: COVID-19: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Award Year: 2022 Compliance Requirement: Reporting Questioned Costs: Not determinable Repeat Finding 2021-001 Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Recipients of Provider Relief Funds (PRF) payments must also comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Condition and Context: The Organization did not complete the PRF reporting in accordance with the U.S. Department of Health and Human Services guidance. The Organization inadvertently excluded certain value-based incentive payments in its reporting of total revenue/net charges from patient care for all quarters presented. The adjustments needed within the PRF report to correct the errors decreased year over year lost revenues from $44,218,904 to $43,347,174 on total distributions of PRF funding of $19,837,251. Effect: The amounts reported to Health Resources and Services Administration (HRSA) were not in accordance with established U.S. Department of Health and Human Services reporting guidance. Cause: An oversight by management led to exclusion of certain value-based incentive payments in all quarters presented. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed and understood and that information used in preparation of the reports is reviewed, with errors addressed, prior to reporting. View of Responsible Officials: Management concurs with the finding and anticipates updating this information with its Period 4 reporting.