VILLA ST. FRANCIS CATHOLIC CARE CENTER INC.

Identification: 93.498 United States Department of Health and Human Services, COVID-19 Provider Relief Fund; Noncompliance Finding/Significant Deficiency; Reporting Compliance Requirement Criteria: The Provider Relief Fund (PRF) was established under the Coronavirus, Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and the Coronavirus Relief and Response Supplemental Appropriations Act (Pub. L. No. 116-260). Eligible healthcare providers received PRF appropriations for health-care related expenses or lost revenues attributable to coronavirus. Recipients who received one or more payments exceeding $10,000 are required to report in each applicable reporting period. Condition: The Organization had three errors in the Period 1 reporting submission. Cause: The Organization had a keying error in the spreadsheet used to calculate lost revenues resulting in some of the revenue being reported in the incorrect quarter. In addition, the Organization excluded the provision for implicit price concessions from reported revenues and did not incorporate audit adjusting journal entries into the calculation of lost revenues. Effect: The Organization overstated their lost revenue for the Period 1 reporting by $135,309. However, the Organization still had unused lost revenues of $846,706 after factoring in the overstatement and, thus, this error had no impact on the amount of CARES Act revenues recognized as revenue. Questioned costs: None Perspective information: We tested the Period 1 report submitted during the reporting period to supporting documentation to determine if the report was completed accurately. Repeat Finding: N/A Recommendations: We recommend policies and procedures over federal grant reporting be strengthened to ensure required reports are completed accurately. Views of Responsible Officials: We acknowledge the errors noted above in the calculation of lost revenues and will further note that even after considering the effects of the overstatement, there is still $846,706 of unreimbursed lost revenues. We will include the effects of audit adjustments and the provision for implicit price concessions in future calculations.

Reference Number 2021-001 Corrective Action Plan: The exclusion of implicit price concessions (bad debts) from our lost revenues calculations resulted in an incorrect report submission for the amount of lost revenues our facility incurred. Since this has been brought to our attention, all future reports submitted through the Provider Relief Fund reporting portal that include lost revenue calculations will include implicit price concessions. Anticipated Completion Date: Changes will be implemented immediately to correct future report submissions for the Provider Relief Fund reporting submission so that our lost revenue computations include provisions for implicit price concessions.