Finding 776586 (2022-001)

2022-001 Federal Assistance Number - 93.498, COVID-19 Provider Relief Fund U.S. Department of Health and Human Services Criteria or Specific Requirement - Reporting (45 CFA 75.342) Condition - Lost revenue attributable to COVID-19 was not properly calculated and reported. Questioned Costs - None noted. Context - The Provider Relief Fund report submitted during the year ended June 30, 2022 used lost revenue Option i method to calculate lost revenue. However, the net patient service revenue reported did not conform to guidance issued by U.S. Department of Health and Human Services for the Option i reporting method. Effect - The System did not properly calculate and report lost revenues in accordance with guidance issued by the U.S. Department of Health and Human Services. The System has revised the lost revenue calculation and has generated sufficient lost revenue to justify the funding received in the reporting period as reported on the Schedule of Expenditures of Federal Awards. There was no impact to total funding received or retained by the System due to the error. Cause - The System's controls to ensure the accuracy of lost revenue did not operate effectively. Identification as a Repeat Finding, if applicable - Not a repeat finding. Recommendation - Policies and procedures should be modified to ensure lost revenue reports are prepared using complete and accurate information. The System should update the lost revenue reported in the next Provider Relief Fund reporting period. View of Responsible Official and Planned Corrective Actions ? Management agrees with the stated finding and has implemented a corrective action plan.