BMH, INC.

2021-001 Unapproved Budgeted Revenues Included in Lost Revenue Calculation Federal Agency: Department of Health and Human Services Assistance Listing Number: 93.498 ? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: [X] Significant Deficiency [ ] Material Weakness [X] Compliance Finding Under the terms and conditions of the award, the recipient certifies it will include only budgeted revenues approved prior to March 27, 2020, for the entire period of availability, in its calculation of lost revenues. Condition: The Organization used its 2021 budget, which was not approved prior to March 27, 2020, in its calculation of lost revenues for calendar year 2021, in its reporting of Provider Relief Fund and APR Rural Distribution to the Health Resource and Services Administration. The Organization used its 2020 budget which was approved prior to March 27, 2020, for its calendar year 2020 lost revenues calculation, however, the 2020 budget did not cover the entire period of availability. Context: This finding appears to be an isolated instance. Effect: No lost revenue was calculated for calendar year 2021. The use of the 2021 budget has no effect on the Provider Relief Funds the Organization retained based on the Period 1 and 2 reporting and will have no effect on the retention of Provider Relief Funds in future reporting periods. Cause: The Organization did not have proper review of internal documentation used to report on federal awards. Recommendation: We recommend the Organization change its lost revenue reporting method to Option 3 in the next reporting period, which will allow for any reasonable method, which could include budgeted revenues approved after March 27, 2020, to be used in the lost revenue calculation for calendar years 2021 and 2022 or to only provide lost revenue data for calendar year 2020. Views of responsible officials and planned corrective action: Use of correct revenues in lost revenue calculation.