Finding Text
Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement ? Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) Condition ? The Organization is required to prepare and submit period-two Provider Relief Fund (PRF) reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs ? $101,859 ? calculated as the expenditures included on the PRF report for capital projects not completed by the end of the period of performance. Context ? The period two PRF report was tested. The Organization obligated the period two PRF funds received utilizing expenditures incurred to prevent, prepare for, and respond to coronavirus. In addition, the period two report also reflected lost revenues based on an alternative reasonable methodology. Effect ? The Organization applied expenditures to period two that did not meet the definition of a qualifying expenditure. Also, errors were made in reporting quarterly lost revenues. Cause ? The Organization charged a portion of provider relief funds for a capital facilities project. However, the Organization was unable to support that the capital project was completed before December 31, 2021, the end of the period of availability for period two PRF funds. In addition, the Organization did not identify certain patient service revenue adjustments to be included in the lost revenue calculation. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? Policies and procedures over the program should be monitored to ensure reporting is prepared using complete and accurate information and to ensure that allowable costs are charged in the correct period of performance. Views of Responsible Officials and Planned Corrective Actions ? During the 2022 audit of PrairieStar Health Center, Inc. our auditors found two instances of the PRF calculation being calculated incorrectly. The two instances were 1) having miscellaneous revenue adjustments in the actual calculation but not in the budget section of the lost revenue calculation and 2) not being able to directly identify if the capital project was completed before the period of availability for period two which is December 31, 2021. This has resulted in a finding in the current year financial statements audit. Management has evaluated the finding and reviewed whether any funds need to be repaid and evaluated its controls around future provider relief reporting cycles. It has been determined that even with the two errors identified lost revenues would have been sufficient to obligate the entire award. Therefore, we have determined no repayment is necessary. If allowed in future provider relief reporting periods, PrairieStar will correct the misreporting. In addition, management will ensure adequate time to review the provider relief reporting prior to the submission deadline in order to catch these oversights. Shandi Stallman, Chief Financial Officer, is the party that has overall responsibility for this corrective action. The anticipated completion date is expected to be March 2023.