Finding Text
COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Federal Assistance Listing Number 93.498
U.S. Department of Health and Human Services
Criteria or Specific Requirement – Reporting (45 CFR 75.42) and Activities Allowed/Unallowed and
Allowable Costs/Cost Principles (Pub. L No 116-136, 134 Stat. 563 and Pub L. No 116-139, 134 Stat.
622 and 623 )
Condition – The Health System elected Option i to report lost revenues to the U.S. Department of
Health and Human Services (DHHS) for reporting Provider Relief Funds for Period 4. Under Option i, lost revenues are
determined to be the difference between 2019 actual patient service revenue and current year actual
patient service revenue. The Health System made certain adjustments to patient service revenue similar
to Option iii which are not allowed under Option i reporting.
Questioned Costs – Unknown.
Context –The Provider Relief Fund report for Period 4 was obtained and it was determined that Option
i was elected to report lost revenues. The Health System made certain adjustments to patient revenues
which were not prescribed under Option i.
Effect – The Health System’s reporting of lost revenues to DHHS for Period 4 was not prepared in
accordance with the requirements determined by DHHS. In addition, the lost revenues were not
properly supported by utilizing Option i.
Cause – Management of the Health System did not fully understand the various methods and
requirements of each of the three options to determine and report lost revenues.
Identification as a Repeat Finding – Not applicable.
Recommendation: Policies and procedures over federal grant reporting should be modified to ensure lost revenues are prepared in accordance with the terms and conditions of the Provider Relief Funds.
Views of Responsible Officials and Planned Corrective Actions – Management will review any future
reporting requirements and revise future reports as necessary. We have researched the applicable
reporting requirements and developed a plan to ensure accurate reports are submitted for any future
reporting periods as necessary.