Finding Text
Federal Program Name: COVID – 19 Provider Relief Fund (PRF)
Federal Agency: U.S. Department of Health and Human Services
Federal Assistance Listing Title and Number: COVID-19 Provider Relief Fund, 93.498
Criteria or Specific Requirement: Reporting - 2 CFR 200.303(a) requires a non-Federal entity to establish
and maintain effective internal control over Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Also, per the terms and conditions of the Provider Relief Fund, amounts are to be used to prevent, prepare for, and respond to coronavirus and payments shall only be used to reimburse the Hospital for health care related expenses or lost revenues that are attributable to coronavirus.
Condition: Lost revenues attributable to COVID-19 were not properly calculated and reported for Provider Relief Fund Portal reporting Period 3 and 4.
Questioned Costs: None
Context: The Hospital reported lost revenues using the actual revenues for 2022 compared to actual revenues for 2019. During specific quarters in Period 3 and 4 reporting, the Hospital did not include all patient revenues including those from the nursing home supplemental payment program in its calculation of lost revenues. This presentation did not conform with guidance published by the Health Resources and Services Administration (HRSA). Errors were identified by reconciling figures to underlying financial information.
Effect: The Hospital did not properly calculate, and report lost revenues.
Cause: Internal controls surrounding the review and submission of required reports were not adequately applied to ensure accuracy of required elements.
Repeat Findings: Yes
Recommendation: We recommend the Hospital evaluate lost revenues under published HRSA guidance and prepare a revised calculation that can be provided, if necessary, upon any further review.
Views of Responsible Officials and Planned Corrective Action: We concur. When evaluating all uses of Provider Relief Funds, we have adequate expenses and lost revenues to support funding reported without consideration to the lost revenues reported in Period 3 and 4.