Finding 966604 (2022-002)

Provider Relief Funds CFDA No. 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement – Activities Allowed/Allowable Costs (40 CFR 35.6245) Condition – The Medical Center is required to prepare and submit period 2 and period 3 provider relief fund reporting. Funds reported for PRF expenses may not be used to reimburse expenses or losses that have been reimbursed from other sources. Questioned Costs – $1,037,755 calculated as the amount of expenses reported in periods 2 and 3 that had already been reimbursed with period 1 funding. Context – The period 2 and period 3 provider relief fund reports were tested. The Medical Center reported the same Other PRF expenses for period 2 and period 3 submissions that were reported in period 1. Effect – Errors were made in reporting Other PRF expenses. Amounts claimed for Other PRF expenses in period 2 and period 3 were already reimbursed by PRF payments in Period 1. This caused errors in the calculated lost revenue available, as the expenses were applied against payments received prior to the utilization of lost revenue. Cause – The Medical Center did not correctly report the Other PRF expenses in the period 2 and period 3 submissions. Identification as a repeat finding – Not a repeat finding Recommendation – Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information.