PELLA REGIONAL HEALTH CENTERNon-Profit

2021-001 Lost Revenue Calculation Methodology Reporting U.S. Department of Health and Human Services Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Federal Award Year 2020-2021 Criteria: Specific criteria have been established by the U.S. Department of Health and Human Services (HHS) in their terms and conditions related to reporting for this program. Entities may elect to calculate and report lost revenue using one of three options. Option i: Actual revenues to prior period revenues, Option ii: Budgeted revenues to actual revenues and Option iii: any other reasonable method. For entities that select, Option ii, budgets must be approved before March 27, 2020 and cover each quarter during the period of availability. Condition: For the Organization?s Period 1 reporting in the HRSA reporting portal, the Organization reported lost revenues using Option ii, the difference between budgeted and actual patient care revenues, however, they only had an approved budget before March 27, 2020 through December 31, 2020, not the entire period of availability. The Organization entered zero budgeted revenues for the quarters in 2021 to compensate for the approved budget only extending through December 31, 2021. Cause: Management?s interpretation of the reporting guidance is that any unbudgeted periods during the period of availability would be entered as zero lost revenues. Effect: The Organization?s selection of the incorrect method in the HRSA portal did not effect the accuracy of the lost revenue reported in the portal or reported on the Other Revenues Schedule. The Organization input zero for budgeted revenue during the quarters in 2021, which resulted in no claimed lost revenues during the months that the approved budget did not cover. Questioned Costs: None noted. Context: The error was present on the reporting submission completed for reporting period one. Repeat finding?: No Recommendation: We recommend that the Organization?s management continue to stay current with HHS requirements on their website so that they have the most current information related to reporting in the HRSA portal. View of responsible officials of the auditee: Management agrees with the finding and recommendation.