Finding Text
Finding 2023-002 - Significant Deficiency in Internal Control – Reporting
Assistance Listing No.: 93.498 COVID-19: Provider Relief Fund and American Rescue Plan (ARP)
Rural Distribution
Federal Agency: U.S. Department of Health and Human Services
Pass-through Agency: Not applicable
Award Number: Not applicable
Award Year: 2021
Questioned Costs: None reported
Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of
2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over
the Federal award to ensure compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. Recipients of Provider Relief Fund and American Rescue Plan
Rural Distribution (PRF) payments must also comply with the reporting requirements described in the
PRF terms and conditions and specified in directions issued by the U.S. Department of Health and
Human Services.
Condition/Context: The Corporation used the Lost Revenues Reporting Method: Alternative
Reasonable Methodology (Option 3) for measuring lost revenues. In the Corporation's Period 4
submission for Robert Packer Hospital, TIN 24-0795463, total lost revenues were incorrectly reported
as $13,011,879, rather than $12,930,176. Total lost revenues available to be used in this reporting
period based on the adjusted amount was $7,142,168 on payments in the period of $7,142,168. This
is not a statistically valid sample.
Effect: Lost revenue reported to Health Resources and Services Administration (HRSA) were
overstated by $81,803. After correcting for this error, available lost revenues were equal to the
payments received for the period of $7,142,768.
Cause: An oversight by management during the review process that failed to identify the error in the
reporting of lost revenues.
Recommendation: We recommend that management implement procedures to ensure that
information used in preparation of the reports is reviewed, with errors addressed, prior to reporting.
Views of Responsible Officials: The Corporation agrees with the finding. Management increased the
level of review over the lost revenue calculations for future reporting periods. Management did not
believe that further corrections to the Period 4 report were necessary as the remaining available lost
revenues after adjusting for the error were equal to the payments received in the period and there
was no further submissions necessary for Robert Parker Hospital.