MASONIC VILLAGES OF THE GRAND LODGE OF PENNSYLVANIA

Finding 2021-002: Reporting Condition: The PRF report # 1 included revenues from all service lines including retirement living and was reported net of charity care and contractual allowances when these amounts should have been excluded from reported amounts. Criteria: PRF reporting requires submission of budgeted or actual total revenues/net charges from patient care for calculations of lost revenues. Cause: Confusion in guidance provided and newness of the program requirements. Effect: The first report filed included incorrect revenue amounts in the calculation, but the second report filed corrected the reported amounts. Context: The first report included reported more revenues than should have been included, but this is considered an isolated incident as the reporting requirements were new, and the error was corrected with the second report filed. Repeat Finding: Not applicable Recommendation: The error was corrected on subsequent report filings. Views of responsible Officials and Planned Corrective Action: Management agrees with the importance of ensuring accuracy in calculating lost revenues on Provider Relief Fund reports. Management implemented internal controls and procedures in November 2021, after the submission of PRF report #1, to identify errors in reporting federal grant expenditures before the submission of the reports to the Health Resources and Service Administration. The implementation of the internal controls and procedures along with the additional guidance on the calculation of lost revenue enabled management to identify the error on PRF report #1. The lost revenue calculation for PRF report #2 was prepared correctly and the updated calculation of lost revenue was applied to all periods covered by PRF including reporting period #1. Management will continue to apply the internal controls processes established for reporting federal grant expenditures as well as participating in continuing education and training for all future federal reporting periods.

Management agrees with the importance of ensuring accuracy in calculating lost revenues on Provider Relief Fund reports. Management implemented internal controls and procedures in November 2021, after the submission of PRF report #1, to identify errors in reporting federal grant expenditures before the submission of the reports to the Health Resources and Service Administration. The implementation of the internal controls and procedures along with the additional guidance on the calculation of lost revenue enabled management to identify the error on PRF report #1. The lost revenue calculation for PRF report #2 was prepared correctly and the updated calculation of lost revenue was applied to all periods covered by PRF including reporting period #1. Management will continue to apply the internal controls processes established for reporting federal grant expenditures as well as participating in continuing education and training for all future federal reporting periods.