Finding 966503 (2023-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-03-29

AI Summary

  • Core Issue: The Corporation reported incorrect lost revenue amounts for the COVID-19 Provider Relief Fund in the portal submission for the third and fourth quarters of 2022.
  • Impacted Requirements: Reporting must align with the Post Payment Notice of Reporting Requirements, which mandates accurate calculations supported by documentation.
  • Recommended Follow-Up: Implement review procedures to ensure that data entered into the portal matches the underlying calculations and documentation.

Finding Text

Assistance Listing, Federal Agency, and Program Name 93.498, U.S. Department of Health and Human Services (HHS), COVID 19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Award Identification Number and Year N/A Pass through Entity N/A Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria The Post Payment Notice of Reporting Requirements for Provider Relief Fund and American Rescue Plan Rural Distributions dated October 27, 2002, required that the reporting entity report lost revenue calculated using one of the three accepted methodologies in the reporting portal. Amounts entered into the portal should be supported by underlying calculations and details. Condition The Corporation reported incorrect amounts of lost revenue for the third and fourth quarters of the 2022 calendar year within the period 4 portal submission for MedFlight. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The lost revenue reported within Corporation's period 4 portal submission for the third and fourth quarters of the 2022 calendar year did not agree to the Corporation's calculated lost revenue amounts for those quarters. Cause and Effect The period 4 portal submission for MedFlight was not independently reviewed prior to submission to ensure the lost revenue was properly reported within the portal, resulting in the incorrect amount of lost revenue being reported by MedFlight within the portal submission for period 4. The actual calculated amount of lost revenue for the third and fourth quarters of the 2022 calendar year that should have been reported in the portal would have also supported the use of the Provider Relief Funding reported on in period 4. Recommendation The Corporation should implement review procedures to ensure the data uploading into the portal agree to the underlying supporting details and calculation. Views of Responsible Officials and Corrective Action Plan Management agrees and has revised existing internal control processes and policies to implement review and approval procedures to ensure data uploaded into the portal agrees to underlying supporting documentation.

Categories

Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 390061 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Covid 19 - Provider Relief Fund (prf) and American Rescue Plan (apr) Rural Distribution $1.59M