Finding Text
U.S. Department of Health and Human Services
Direct Program: COVID-19 Provider Relief Fund - 93.498
Criteria or Specific Requirement - Reporting (Pub L. No 116-136, 134 Stat. 563 and Pub L. No.
116-139, 134 Stat. 622 and 623). The Provider Relief Fund (PRF) was established in the Coronavirus Aid,
Relief, and Economic Security Act (CARES Act, P.L. 116-136) to reimburse, through grants or other
mechanisms, eligible health care providers for increased expenses or lost revenue attributable to
Coronavirus Disease (COVID-19). Entities that received more than $10,000 (either one time or in the
aggregate) are required to report the uses of their funds, including the lost revenue reimbursement and
documentation of how the lost revenue was calculated.
Condition - New Liberty Hospital District (NLHD, TIN #430977042) and New Liberty Hospital
Corporation (NLHC, TIN #431684627) did not properly report revenues by quarter in the period 4
HHS Provider Relief Fund (PRF) portal.
Questioned Costs - None
Context - Upon testing the period 4 portal reports, it was determined that actual revenues within fiscal
year 2022 included in the portal (which consists of portal years 2021 and 2022 based on the organization's
year-end date) did not tie to the District's audited financial statements. There was a difference of
approximately $655,000 within NLHD and a difference of approximately $776,000 within NLHC.
Effect - The District submitted revenues that were incorrect for part of 2021 and 2022. This error in
reporting did not lead to a change in the amount of lost revenues available to be used by the District (all
quarters reported zero lost revenues).
Cause - The guidance provided by HHS to providers across the country as to how to report their
COVID-19-related expenses and lost revenues is, at times, difficult to comprehend and apply. The
District's review processes over the portal submission failed to detect the errors.
Identification as a Report Finding - Not applicable.
Recommendation - The District should conduct detailed reviews to ensure reported amounts are
properly tied out to the audited financial statements.
View of Responsible Official and Planned Corrective Actions - The District agrees with this finding,
however, does note that this did not in any way impact the amount of lost revenues available to be used
under Provider Relief Fund program guidance. See separate auditee document for planned corrective
action.