Finding 968810 (2021-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-04-05
Audit: 302715
Organization: Scott County Hospital (KS)
Auditor: Gbn P A

AI Summary

  • Core Issue: The Hospital incorrectly reported lost revenues using option ii instead of the required option iii due to a late budget approval.
  • Impacted Requirements: Compliance with Public Law 116-136 regarding accurate reporting of lost revenues.
  • Recommended Follow-Up: Management should enhance controls over federal grant reporting to ensure correct methodologies are used in future submissions.

Finding Text

Identification: 93.498 United States Department of Health and Human Services, Provider Relief Fund; Noncompliance Finding/Significant Deficiency; Reporting Compliance Requirement Criteria: Lost Revenues (Public Law 116-136). Condition: The Hospital selected option ii for reporting budgeted versus actual revenue for the computation of lost revenues for 2020 and the first two quarters on 2021. The Hospital's budget through June 2020 was approved by March 27, 2020 but the budget for July 2020 to June 2021 was approved subsequent to March 27, 2020. Accordingly, the Hospital should have selected option iii, a reasonable alternative methodology, when reporting lost revenue. Cause: The budget for July 2020 to June 2021 was approved subsequent to March 27, 2020. Effect: The Hospital reported lost revenues on the PRF portal under option ii instead of option iii. Questioned Costs: None. Context/Perspective: The option selected to report lost revenues was not accurate, however, the calculation of lost revenues was accurate and deemed to be a reasonable methodology. Repeat Finding: N/A Recommendations: We recommend that management review controls over federal grant reporting to ensure the proper reporting of lost revenues. Views of Responsible Officials: Management agrees with this finding and will review procedures to ensure that lost revenues are reported under method iii on future PRF report submissions.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 392366 2021-001
    Significant Deficiency
  • 392367 2021-002
    Material Weakness
  • 392368 2021-003
    Significant Deficiency
  • 968808 2021-001
    Significant Deficiency
  • 968809 2021-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $4.33M
93.697 Covid-19 Testing for Rural Health Clinics $49,461
93.301 Small Rural Hospital Improvement Grant Program $35,666