Finding Text
Identification: 93.498 United States Department of Health and Human Services, Provider Relief Fund; Noncompliance Finding/Material Weakness; Activities Allowed or Unallowed, Allowable Costs/Cost Principles/Reporting Compliance Requirements Criteria: The Provider Relief Fund (PRF) was established under the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116‐136, 134 Stat. 563) and the Coronavirus Relief and Response Supplemental Appropriations Act (Pub. L. No. 116‐260). The PRFs are to be used to prevent, prepare for, and respond to coronavirus. The PRFs are to reimburse recipients only for health care related expenses or lost revenues that are attributable to coronavirus. The PRF funds may not be used to reimburse expenses or losses that have been reimbursed by other sources or that other sources are obligated to reimburse. Condition: The Authority is a critical access hospital and reimbursed from Medicare based on allowable expenses incurred to provide services to Medicare beneficiaries. The Authority claimed expenses
attributable to coronavirus, but did not reduce such expense by the amounts Medicare reimbursed or was
obligated to reimburse the Authority. Cause: The Authority's spreadsheet for tracking federal grant expenditures had multiple sheets for tracking the expenditures that were allowable uses for PRFs. When the expenditures were compiled for reporting, procedures were not in place to reduce the expenditures for Medicare reimbursement. Effect: The Authority claimed and reported PRF expenditures that were reimbursed by Medicare or Medicare was obligated to reimburse. Questioned costs: $1,119,149 Perspective Information: The estimate of the reimbursement from Medicare for PRF expenditures was based on the annual Medicare cost report for the year ended June 30, 2020 and June 30, 2021, as applicable. The PRF expenditures less the questioned costs noted in finding 2021‐005 and costs noted in finding 2021‐006 were removed from the annual Medicare cost report and allocation statistics adjusted accordingly to arrive at the total amount of $1,119,149 as being considered reimbursed by another source or as Medicare being obligated to reimburse. Repeat Finding: N/A Recommendations: We recommend policies and procedures over federal grant reporting be modified to
include procedures to ensure that only amounts not reimbursed by other sources or obligated to be
reimbursed by other sources are included. Views of Responsible Officials: The Authority will develop an appropriate estimate of Medicare reimbursement to reduce expenditures by for future federal award reporting as necessary.