Finding Text
U.S. Department of Health and Human Services Direct Program: COVID-19 Provider Relief Fund - 93.498 Criteria or Specific Requirement - Management is responsible for establishing and maintaining effective internal control over costs directly and indirectly charged to federal awards. Condition - The Hospital reported COVID-19-related expenditures within the HHS Provider Relief Fund (PRF) portal that were eligible to be reimbursed via other sources. Questioned Costs - $141,793 was the total amount of expenses determined to be over-reported to the federal program. This was calculated by taking the total amount of acceptable expenditures multiplied by the Hospital's internally-calculated Medicare reimbursement rate. Context - Upon testing the compliance requirements of this program, it was determined that a total of two of the six quarters of expenditure items were being reported incorrectly and that they were not "Medicare-affected," as is consistent with existing guidance provided by the U.S. Department of Health and Human Services. Effect - The Hospital submitted expenses under the PRF program that are obligated to be reimbursed by another source. Cause - The guidance provided by HHS to providers across the country as to how to report their COVID-19-related expenses and lost revenues is, at times, difficult to comprehend and apply. The Hospital incorrectly applied guidance. Identification as a Report Finding - Not applicable. Recommendation - The Hospital should continue to improve its understanding of the guidance related to this type of reporting and work with their external advisors to identify areas for improvement prior to submission to the Provider Relief Fund reporting portal. View of Responsible Official and Planned Corrective Actions - The Hospital agrees with this finding, however does note that their remaining COVID-19-related expenses and lost revenues still exceeded the amount of the Provider Relief Fund program money they received. See separate auditee document for planned corrective action.