Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Title: Provider Relief Funding
Assistance Listing Number: 93.498
Award Period: January 1, 2021 through December 31, 2021
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipients only for health care related expenses or lost revenues that are attributable to coronavirus.
Condition: Period 1 submission related to provider relief funds received required Presbyterian Homes of Tennessee, Inc. to complete a quarterly table of applicable expenses and then to select one of the three lost revenue options to cover any remaining PRF after expenses were applied.
Questioned costs: None
Context: We noted that the initial submission for Period 1 related to the Provider Relief Funds was incorrect as filed. Expenses and lost revenues were incorrectly reflected on the submission. Management of Presbyterian Homes of Tennessee, Inc., after communicating with the Health Resources and Services Administration (HRSA), resubmitted a corrected submission for Period 1, accurately reflecting information for Period 1.
Cause: The initial submission report was not completed accurately or properly reviewed.
Effect: The initial submission for Period 1 incorrectly showed eligible expenses and was incomplete as to lost revenues. Management was able to provide a resubmission of Period 1 to accurately reflect lost revenues and applicable expenses using Option 1.
Recommendation: With the corrected submission provided by management for Period 1, Presbyterian Homes of Tennessee, Inc. provided supportable information related to the period, specifically around lost revenues, which were in excess of the provider relief payments received for Period 1. We recommend management have policies and procedures in place to ensure for any future submissions, information included is supported with the appropriate documentation and that the submissions are reviewed.
Views of responsible officials: There is no disagreement with the audit finding. As with the amended Period 1 reporting and future filings, procedures are in place to ensure accurate reporting.