Finding 8503 (2023-001)

Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing No. 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement – Reporting (45 CFR 75.342). Condition – The Organization is required to prepare and submit period four Provider Relief Funding Reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs - None Context – The period four Provider Relief Fund report was tested for four subsidiaries within Burrell-Preferred, Inc., d/b/a Brightli and Affiliates. The Organization selected Option i and Option iii for various entities to report lost revenues. Certain adjustments for allowances on accounts receivable balances were improperly excluded from quarterly revenues related to client care. Eighty attributes were tested of which sixteen had errors. The reporting errors identified did not result in any changes in the use of the Provider Relief Fund payments as reported. Effect – Errors were made in reporting quarterly Total Revenue from Client Care. Lost revenues were not accurately reported. Cause – The Organization improperly excluded certain patient service revenue components in their calculation. Identification as a Repeat Finding – Not a repeat finding. Recommendation – Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information.