Finding Text
Department of Health and Human Services
Federal Assistance Listing/# 93.498
COVID-19 Provider Relief Fund and
American Rescue Plan (ARP) Rural Distribution
Applicable Federal Award Number and Year – Period 4 # TIN #237169043
Reporting
Material Weakness in Internal Control Over Compliance and Material Noncompliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control
over the federal award that provides assurance that the entity is managing the federal award in compliance with
federal statutes, regulations, and conditions of the federal award.
Condition: The Facilities did not consider the impact of the year-end audit adjustments on the quarters
applicable to Period 4 when reporting lost revenue.
Cause: The established internal controls did not consider the effect of the year-end audit adjustments by
quarter for Period 4 to ensure accurate quarterly reporting of net patient revenue.
Effect: Key line items for reporting related to lost revenue were materially misstated. No lost revenue was
claimed during the current period.
Questioned Costs: None reported.
Context/Sampling: Key line items were tested on the Period 4 Department of Health and Human Services
special report.
Repeat Finding from Prior Years: No.
Recommendation: Management should enhance its internal controls over federal award compliance and review
to ensure proper reporting of net patient care revenue.
Views of Responsible Officials: Management agrees with the finding.