Finding Text
Statement Condition: The Period 1 Provider Relief Fund report was submitted with total revenue/net patient charges for each quarter of 2019 and 2020 and in total that did not agree to the net resident service revenues per the quarterly internal and year end audited financial statements. Criteria: Under the terms and conditions of the awards, accurate amounts that agree with the entity's financial records are required to be reported in the Provider Relief Fund report. Cause of Condition: It appears that Cottages did not include all third-party payor revenue sources and did not reconcile the submitted numbers back to the audited financial statements. Effect of Condition: The auditee reported actual revenues that were understated by $941,108 and $63,483 in 2019 and 2020, respectively. However, the reporting did not impact the PRF funding received as only $140.98 of lost revenue was utilized for PRF Reporting Period 1. Recommendation: We recommend that management implement a control process which includes a documented secondary review of approval. Due to the untimely reporting of this finding, Cottages is past the timeframe for filing revisions to Period 1 and Period 2 PRF reports. Therefore, we also recommend Cottages maintain documentation that details they incurred enough lost revenues to continue to qualify for the full amount of the funding. Views of Responsible Official: Management agrees with the recommendation. See corrective action plan.