PERRY COUNTY MEMORIAL HOSPITAL FOUNDATION INCNon-Profit

Community Facilities Loans and Grants Cluster; Federal Assistance Listing No. 10.766; U.S. Department of Agriculture Criteria or specific requirement ? Reporting Condition: The Hospital is required to submit annual audited financial statements to the U.S. Department of Agriculture 150 days subsequent to yearend. The audited financial statements as of and for the year ended December 31, 2021, were due to the U.S. Department of Agriculture by May 30, 2022, and were not submitted until November 2022. Questioned costs: None. Context: In testing the timely submission of the audited financial statements, the Hospital was unable to locate or provide support showing that the audited financial statements were submitted to the U.S. Department of Agriculture by the due date. Effect: Audited financial statements were not timely submitted. Cause ? The Hospital was unable to produce support for timely submitted audited financial statements. Identification as a repeat finding ? Not applicable Recommendation ? We recommend management develop a procedure to ensure that the audited financial statements are timely submitted to the U.S. Department of Agriculture. Views of responsible officials and planned corrective actions: Management agrees with the recommendation. The Hospital will create calendar appointments prior to required deadline for submission of the audited financial statements for the responsible personnel including the chief financial officer.

U.S. Department of Health and Human Services (HHS) ? Federal Assistance Listing No. 93.498, Provider Relief Fund Criteria or specific requirement ? Allowable Costs (Public Law 116-136) Condition ? Allowable costs related to the program must be expenses that are unreimbursed by other sources and that other sources are not obligated to reimburse. Cause ? As a critical access hospital, the Hospital did not apply reimbursement from Medicare for health care related expenses. The Hospital also did not include reimbursement for COVID-19 testing as an offset to COVID-19 testing expenses. Patient billing for employee COVID-19 testing was incorrectly included as an allowable expense. Effect or potential effect ? The amount of allowable costs is overstated. Questioned costs ? $776,575, as estimated at the applicable reimbursement percentage for Medicare and COVID-19 testing reimbursement, and amount of employee COVID-19 charges included in allowable costs. Context ? The reimbursement from Medicare was identified as not applied to the population of allowable costs. The reimbursement for COVID-19 testing was identified as not applied to costs related to COVID-19 testing within the compliance testing. Patient billing for employee COVID-19 testing was incorrectly included as an allowable expense. Identification as a repeat finding ? N/A Recommendation ? Refer to the HHS Provider Relief Fund General and Targeted Distribution Post-Payment Notice of Reporting Requirements dated June 11, 2021, and the most recently distributed Provider Relief Fund frequently asked questions which provide details on requirements related to the program. Views of responsible officials ? The Hospital?s management and board agree and will continue to review the requirements related to the program for reimbursement from other sources related to expenses and allowable costs.