Finding 970088 (2023-002)

2023-002 Provider Relief Fund Reporting of Lost Revenue Federal Agency Department of Health and Human Services Federal Assistance Listing Number 93.498 – Provider Relief Fund and American Rescue Plan Rural Distribution Criteria [ X ] Compliance Finding [ ] Significant Deficiency [ X ] Material Weakness Under the terms and conditions of the award, the recipient certifies it will report actual net patient service revenues for the periods reported on in its reporting of actual net patient service revenues for its calculation of lost revenues due to coronavirus. Condition Lost revenues reported were less than actual lost revenues. Context This finding appears to be an isolated problem. Cause The summary of net patient service revenue used in reporting contained a clerical error that understated reported lost revenue. Effect Reported lost revenues were materially understated. If the correct amount of net patient service revenues had been reported, the Hospital would still have sufficient lost revenues to use all of the Provider Relief Fund amounts received. Therefore, there is no effect on the Hospital’s retention of the Provider Relief Funds. Recommendation We recommend the Hospital’s management correct its lost revenue calculation for any future reporting for the Provider Relief Fund. Views of responsible officials and planned corrective actions Finding is noted and corrections will be made to the lost revenues schedule as noted. Future reports for PRF will be correct.