Finding 7087 (2021-005)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-01-02
Audit: 9115
Organization: Iroquois Nursing Home, Inc. (NY)
Auditor: Fustcharles LLP

AI Summary

  • Core Issue: The Nursing Home incorrectly reported certain expenses in Period 1 that were not intended to be claimed, leading to discrepancies in their PRF reports.
  • Impacted Requirements: Compliance with HHS reporting guidelines requires accurate accounting of eligible expenses and lost revenues, which were not aligned with management's intentions.
  • Recommended Follow-Up: Maintain thorough documentation of eligible expenditures and lost revenues to support future funding claims, despite missing the deadline for revising past reports.

Finding Text

Statement of Condition:  As part of our compliance testing, we reviewed certified submissions to the HHS portal for both Period 1 and Period 2. As a result of this review, we noted that certain expenses were claimed in Period 1 that management did not intend to claim, rather, they intended to utilize lost revenues reported in the submissions. Criteria:  The Nursing Home is required to submit Period 1 and Period 2 Provider Relief Fund (PRF) reports to the Department of Health and Human Services (HHS). The reports require providers to account for and certify that eligible expenses and lost revenue are used to determine proper usage and recognition of funds. Effect of Condition:  While the Nursing Home incurred more than sufficient eligible expenditures and lost revenues to exhibit that the Nursing Home funds were fully utilized, the reporting of the Period 1 and Period 2 expenditures were incorrect, and management did not intend to claim certain expenditures through the PRF Funding. As a result, the Period 1 and Period 2 reporting does not tie to management’s underlying supporting documentation for Period 1 and Period 2 PRF reports, since expenditures claimed were intended to be a lesser amount than reported. Cause of Condition:  The Nursing Home included certain eligible expenses in its Period 1 Provider Relief Fund reports due to evolving guidance and availability of funding streams at the time the reporting was due. Upon further guidance of the funding over the period of performance, lost revenue was intended to be utilized for use of most of the funding received, versus expenditures. Based on the guidance in existence and funds available at the time, management believed the Nursing Home to be in compliance based on HHS Portal Instructions at the time of submission. Recommendation:  We recommend the Nursing Home maintain documentation that details they incurred enough eligible expenditures and lost revenues to continue to qualify for the full amount of the funding, even though expenditures and lost revenues claimed on the Period 1 and Period 2 report were not what they intended. Due to the untimely reporting of this finding, the Nursing Home is past the timeframe for filing revisions to Period 1 and Period 2 PRF reports. Views of Responsible Official:  We agree with the recommendation. The Nursing Home incurred significant lost revenue and eligible expenditures exceeding the amount of the funds received. See corrective action plan.

Corrective Action Plan

In May 2022, a new CFO was hired and new procedures put in place. Both the CFO and Accounting Manager both have reviewed eligible expenditures and loss revenue to ensure entity does indeed qualify for the full amount of funding, regardless of the information that was submitted on the respective reports.

Categories

Reporting Period of Performance

Other Findings in this Audit

  • 7086 2021-004
    Significant Deficiency
  • 7088 2021-006
    Significant Deficiency
  • 583528 2021-004
    Significant Deficiency
  • 583529 2021-005
    Significant Deficiency
  • 583530 2021-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $1.12M