Finding Text
Criteria: The Provider Relief Funds are required to be reported through the Required Relief Funds Reporting Portal and include key items for Provider Relief Fund expenses and calculation of lost revenues.
Condition: While management’s calculation of lost revenues for 2020 was determined to be accurate, as the 2019 and 2020 reported numbers in the portal submission reconciled and agreed to the Company’s audited net revenue amounts for those periods, the calculation of lost revenues for 2021 was not accurate. The reported amounts of net revenue from fiscal year 2021 and fiscal year 2022 (partially from calendar year 2021) did not reconcile or agree to the audited amounts of net patient revenue from these periods.
Effect: The reporting in the portal inaccurately reported total lost revenues for each subsidiary’s portal submission. However, there were no questioned costs, as the 2020 reported lost revenues that were determined to be accurate, exceeded any amounts received from the Provider Relief Fund in the period under audit, and the cumulative receipts of Provider Relief Funding in all periods.
Cause: The Company’s reporting over patient service revenue that was utilized in the compilation of the portal submission was inaccurate, and did not agree to the final 2021 audited amounts. In addition, there was no evidence that a secondary member of management reviewed the information prior to its submission.
Recommendation: We recommend that management implement procedures and controls to ensure that all reporting and submissions to federal agencies are accurate and are sufficiently reviewed by another member of management prior to the submission.
Repeat finding: No
Views of responsible officials and planned corrective actions: See attached letter.
Reportable questioned costs: None