EIN: 626007078
UEI: EPY1QMJ6H455
Data as of August 26, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 18, 2024. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 18, 2024 (769 days ago).
What is a management decision? →2023-001 Programs: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution CFDA Number: 93.498 Federal Agencies: U.S. Department of Health and Human Services Passed-Through Entities: N/A Award Number: N/A Award Year: Various Compliance Requirement: Reporting Questioned Costs: None Criteria: As required by the Provider Relief Fund Distributions and American Rescue Plan Rural Distribution Post-Payment Notice of Reporting Requirements, when referring to revenues from patient care for the purposes of the calculation of lost revenues attributable to COVID-19 patient care was defined as: ““Patient care” means health care, services, and supports, as provided in a medical setting, at home/telehealth, or in the community. It should not include non-patient care revenue such as insurance, retail, or real estate revenues (exception for nursing and assisted living facilities’ real estate revenues where resident fees are allowable); prescription sales revenues (exception when derived through the 340B program); grants or tuition; contractual adjustments from all third-party payors; charity care adjustments; bad debt; and any gains and/or losses on investments.” Condition and Context: The Medical Center elected to use the Lost Revenues Reporting Method of comparing 2019 actual revenue to 2020-2022 actual revenue. When preparing the calculation, the Medical Center excluded certain reimbursement settlement accounts during 2020-2021. This was corrected beginning January 2022 and forward, but previous quarters were not adjusted. Cause: The Medical Center erroneously omitted the related settlement general ledger accounts when financial data by the payor was compiled for the lost revenue calculations for 2020 and 2021. Effect: The Medical Center has misstated the lost revenues when reporting the revenues within the Health Resources and Services Administration ("HRSA") reporting portal. However, the Medical Center does have sufficient expenditures and eligible lost revenues to recognize all funding received in the reporting period. Recommendation: Management should adjust the internal lost revenue calculations to address the item noted above. In the event the Medical Center receives a request from the federal agency or another party to audit the use of the funds, the most accurate and up-to-date information should be available to support the use of the funds. View of Responsible Official: The Medical Center agrees with this finding.
Show full finding ▾Hide full finding ▴2023-001 Programs: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution CFDA Number: 93.498 Federal Agencies: U.S. Department of Health and Human Services Passed-Through Entities: N/A Award Number: N/A Award Year: Various Compliance Requirement: Reporting Questioned Costs: None Criteria: As required by the Provider Relief Fund Distributions and American Rescue Plan Rural Distribution Post-Payment Notice of Reporting Requirements, when referring to revenues from patient care for the purposes of the calculation of lost revenues attributable to COVID-19 patient care was defined as: ““Patient care” means health care, services, and supports, as provided in a medical setting, at home/telehealth, or in the community. It should not include non-patient care revenue such as insurance, retail, or real estate revenues (exception for nursing and assisted living facilities’ real estate revenues where resident fees are allowable); prescription sales revenues (exception when derived through the 340B program); grants or tuition; contractual adjustments from all third-party payors; charity care adjustments; bad debt; and any gains and/or losses on investments.” Condition and Context: The Medical Center elected to use the Lost Revenues Reporting Method of comparing 2019 actual revenue to 2020-2022 actual revenue. When preparing the calculation, the Medical Center excluded certain reimbursement settlement accounts during 2020-2021. This was corrected beginning January 2022 and forward, but previous quarters were not adjusted. Cause: The Medical Center erroneously omitted the related settlement general ledger accounts when financial data by the payor was compiled for the lost revenue calculations for 2020 and 2021. Effect: The Medical Center has misstated the lost revenues when reporting the revenues within the Health Resources and Services Administration ("HRSA") reporting portal. However, the Medical Center does have sufficient expenditures and eligible lost revenues to recognize all funding received in the reporting period. Recommendation: Management should adjust the internal lost revenue calculations to address the item noted above. In the event the Medical Center receives a request from the federal agency or another party to audit the use of the funds, the most accurate and up-to-date information should be available to support the use of the funds. View of Responsible Official: The Medical Center agrees with this finding.
Recommendations: Management should adjust the internal lost revenue calculations to address the noted item for lost revenue calculations for 2020 and 2021. In the event the Medical Center receives a request from the federal agency or another party to audit the use of the funds, the most accurate and up-to-date information should be available to support the use of the funds. Actions: Henry County Medical Center owns a Rural Health Clinic and receives additional reimbursement from the State of Tennessee for treatment of Medicaid patients. This additional reimbursement is reported on internal financial statements as “Other Operating Revenue.” When HRSA reporting was prepared for 2020 and 2021, these funds were not included as part of Net Patient Revenue thus impacting the loss of revenue calculation. Internal worksheets calculating lost revenue compared to 2019 have been updated to accurately reflect lost revenue. This change had no impact on the accounting for all funds received during the reporting periods.
2022-001
2023-002 Programs: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution CFDA Number: 93.498 Federal Agencies: U.S. Department of Health and Human Services Passed-Through Entities: N/A Award Number: N/A Award Year: Various Compliance Requirement: Allowable Costs / Cost Principles Questioned Costs: None Criteria: The terms and conditions of the Provider Relief Fund state that funds are not to be used to reimburse expenses or lost revenue that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition and Context: During the process of identifying expenses that were incurred to prevent, prepare for or respond to the COVID-19 pandemic during Reporting Periods 1-3, the Medical Center accumulated expenses related to prescription drugs used to treat COVID-19 patients. However, the cost of the prescription drugs was not reduced by amounts reimbursable from other sources, specifically reimbursed through third-party payors. Cause: The Medical Center incurred significant costs when treating COVID-19 patients that was not fully reimbursed through third-party payors. However, management reported in the HRSA reporting portal during Reporting Periods 1-3 the full amount of the costs of the prescription drugs used to treat COVID-19 patients, including portions that were reimbursed through third-party payors instead of performing an analysis and claiming only the incremental cost related to COVID-19 treatments that were in excess of the reimbursed amounts. Effect: Expenses reported in the PRF reporting portal during Reporting Periods 1-3 were not reduced by amounts reimbursable from other sources, specifically reimbursements received from third-party payors. However, the Medical Center does have sufficient other expenditures and eligible lost revenues to recognize all funding received in the reporting period. Recommendation: We noted that management discontinued capturing prescription drugs as reimbursable expenses under the Provider Relief Fund during Reporting Period 4. However, the lost revenue calculations were not adjusted to deduct the unallowable costs to avoid reimbursement for the same expenses or lost revenue. We recommend that management update the internal calculation of lost revenues to deduct the unallowable costs to demonstrate and support that there is no reimbursements for the same expenses or lost revenue. In the event the Medical Center receives a request from the federal agency or another party to audit the use of the funds, the most accurate and up-to-date information should be available. View of Responsible Official: The Medical Center agrees with this finding.
Show full finding ▾Hide full finding ▴2023-002 Programs: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution CFDA Number: 93.498 Federal Agencies: U.S. Department of Health and Human Services Passed-Through Entities: N/A Award Number: N/A Award Year: Various Compliance Requirement: Allowable Costs / Cost Principles Questioned Costs: None Criteria: The terms and conditions of the Provider Relief Fund state that funds are not to be used to reimburse expenses or lost revenue that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition and Context: During the process of identifying expenses that were incurred to prevent, prepare for or respond to the COVID-19 pandemic during Reporting Periods 1-3, the Medical Center accumulated expenses related to prescription drugs used to treat COVID-19 patients. However, the cost of the prescription drugs was not reduced by amounts reimbursable from other sources, specifically reimbursed through third-party payors. Cause: The Medical Center incurred significant costs when treating COVID-19 patients that was not fully reimbursed through third-party payors. However, management reported in the HRSA reporting portal during Reporting Periods 1-3 the full amount of the costs of the prescription drugs used to treat COVID-19 patients, including portions that were reimbursed through third-party payors instead of performing an analysis and claiming only the incremental cost related to COVID-19 treatments that were in excess of the reimbursed amounts. Effect: Expenses reported in the PRF reporting portal during Reporting Periods 1-3 were not reduced by amounts reimbursable from other sources, specifically reimbursements received from third-party payors. However, the Medical Center does have sufficient other expenditures and eligible lost revenues to recognize all funding received in the reporting period. Recommendation: We noted that management discontinued capturing prescription drugs as reimbursable expenses under the Provider Relief Fund during Reporting Period 4. However, the lost revenue calculations were not adjusted to deduct the unallowable costs to avoid reimbursement for the same expenses or lost revenue. We recommend that management update the internal calculation of lost revenues to deduct the unallowable costs to demonstrate and support that there is no reimbursements for the same expenses or lost revenue. In the event the Medical Center receives a request from the federal agency or another party to audit the use of the funds, the most accurate and up-to-date information should be available. View of Responsible Official: The Medical Center agrees with this finding.
Recommendations: It is recommended that management update the internal calculation of lost revenues for 2020 and 2021 to deduct the unallowable costs to demonstrate and support that there are no reimbursements for the same expenses or lost revenue. In the event the Medical Center receives a request from the federal agency or another party to audit the use of the funds, the most accurate and up-to-date information should be available. Actions: Henry County Medical Center claimed as COVID expenses for HRSA reporting the cost of additional drugs used in treating COVID patients for reporting periods 1-3. This was based on information received by management at the beginning of the COVID pandemic. It was later learned that Medicare provided additional payments on claims related to patients being treated for COVID. This additional reimbursement was to help offset some of the additional costs incurred by providers. Internal worksheets calculating lost revenue and COVID 19 expenses have been updated to accurately reflect lost revenue and expenses related to COVID 19 patient care. This change had no impact on the accounting for all funds received during the reporting periods.
2022-002
FAC accepted this audit on April 19, 2023 — management decision was due October 19, 2023.
2022-001 Programs: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution CFDA Number: 93.498 Federal Agencies: U.S. Department of Health and Human Services Passed-Through Entities: N/A Award Number: N/A Award Year: Various Compliance Requirement: Reporting Questioned Costs: None Criteria: As required by the Provider Relief Fund General and Targeted Distribution Post-Payment Notice of Reporting Requirements, issued on June 11, 2021, when referring to revenues from patient care for the purposes of the calculation of lost revenues attributable to COVID-19 patient care was defined as: ??Patient care? means health care, services, and support, as provided in a medical setting, at home/telehealth, or in the community. It should not include non-patient care revenue such as insurance, retail, or real estate revenues (exception for nursing and assisted living facilities? real estate revenues where resident fees are allowable); prescription sales revenues (exception when derived through the 340B program); grants or tuition; contractual adjustments from all third-party payors; charity care adjustments; bad debt; and any gains and/or losses on investments.? Condition and Context: The Medical Center elected to use the Lost Revenues Reporting Method of comparing 2019 actual revenue to 2020 actual revenue. When preparing the calculation, the Medical Center excluded certain reimbursement settlement accounts. Cause: The Medical Center erroneously omitted the related settlement general ledger accounts when financial data by payor was compiled for the lost revenue calculations. Effect: The Medical Center has misstated the lost revenues when reporting the revenues within the Health Resources and Services Administration ("HRSA") reporting portal. However, the Medical Center does have sufficient expenditures and compliant lost revenues to recognize all funding received in the reporting period. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Management should also consider adjusting lost revenue calculations in future HRSA reporting periods. View of Responsible Official: The Medical Center agrees with this finding.
Show full finding ▾Hide full finding ▴2022-001 Programs: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution CFDA Number: 93.498 Federal Agencies: U.S. Department of Health and Human Services Passed-Through Entities: N/A Award Number: N/A Award Year: Various Compliance Requirement: Reporting Questioned Costs: None Criteria: As required by the Provider Relief Fund General and Targeted Distribution Post-Payment Notice of Reporting Requirements, issued on June 11, 2021, when referring to revenues from patient care for the purposes of the calculation of lost revenues attributable to COVID-19 patient care was defined as: ??Patient care? means health care, services, and support, as provided in a medical setting, at home/telehealth, or in the community. It should not include non-patient care revenue such as insurance, retail, or real estate revenues (exception for nursing and assisted living facilities? real estate revenues where resident fees are allowable); prescription sales revenues (exception when derived through the 340B program); grants or tuition; contractual adjustments from all third-party payors; charity care adjustments; bad debt; and any gains and/or losses on investments.? Condition and Context: The Medical Center elected to use the Lost Revenues Reporting Method of comparing 2019 actual revenue to 2020 actual revenue. When preparing the calculation, the Medical Center excluded certain reimbursement settlement accounts. Cause: The Medical Center erroneously omitted the related settlement general ledger accounts when financial data by payor was compiled for the lost revenue calculations. Effect: The Medical Center has misstated the lost revenues when reporting the revenues within the Health Resources and Services Administration ("HRSA") reporting portal. However, the Medical Center does have sufficient expenditures and compliant lost revenues to recognize all funding received in the reporting period. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Management should also consider adjusting lost revenue calculations in future HRSA reporting periods. View of Responsible Official: The Medical Center agrees with this finding.
2022-001 Recommendations: Policies and procedures over federal grant reporting be modified to ensure reports are prepared using complete and accurate information. Management should consider adjusting lost revenue calculations in future HRSA reporting periods. Actions: Henry County Medical Center owns a Rural Health Clinic and receives additional reimbursement from the State of Tennessee for treatment of Medicaid patients. This additional reimbursement is reported on internal financial statements as ?Other Operating Revenue.? When HRSA reporting was prepared these funds were not included as part of Net Patient Revenue thus impacting the loss of revenue calculation. HRSA reporting will be adjusted to reflect these additional payments as part of the loss of revenue calculation at the next HRSA reporting period date of March 31, 2023.
2021-001
2022-002 Programs: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution CFDA Number: 93.498 Federal Agencies: U.S. Department of Health and Human Services Passed-Through Entities: N/A Award Number: N/A Award Year: Various Compliance Requirement: Allowable Costs / Cost Principles Questioned Costs: None Criteria: The terms and conditions of the Provider Relief Fund state that funds are not to be used to reimburse expenses or lost revenue that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition and Context: During the process of identifying expenses that were incurred to prevent, prepare for or respond to the COVID-19 pandemic, the Medical Center accumulated expenses related to prescription drugs used to treat COVID-19 patients. However, the cost of the prescription drugs was not reduced by amounts reimbursable from other sources, specifically reimbursed through third-party payors. Cause: The Medical Center incurred significant costs when treating COVID-19 patients that was not fully reimbursed through third-party payors. However, management reported in the HRSA reporting portal the full amount of the costs of the prescription drugs used to treat COVID-19 patients, including portions that were reimbursed through third-party payors instead of performing an analysis and claiming only the incremental cost related to COVID-19 treatments that were in excess of the reimbursed amounts. Effect: Expenses reported in the PRF reporting portal have not been reduced by amounts reimbursable from other sources, specifically reimbursements received from third-party payors. However, the Medical Center does have sufficient other expenditures and compliant lost revenues to recognize all funding received in the reporting period. Recommendation: We recommend that management continue to monitor and enhance its internal controls over federal award compliance to ensure that only eligible costs are included in amounts expended and that the same expenses are not reimbursed by other sources. Additionally, we recommend that management consider adjusting lost revenues in a future HRSA reporting period to deduct the unallowable costs to avoid "double dipping". View of Responsible Official: The Medical Center agrees with this finding.
Show full finding ▾Hide full finding ▴2022-002 Programs: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution CFDA Number: 93.498 Federal Agencies: U.S. Department of Health and Human Services Passed-Through Entities: N/A Award Number: N/A Award Year: Various Compliance Requirement: Allowable Costs / Cost Principles Questioned Costs: None Criteria: The terms and conditions of the Provider Relief Fund state that funds are not to be used to reimburse expenses or lost revenue that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition and Context: During the process of identifying expenses that were incurred to prevent, prepare for or respond to the COVID-19 pandemic, the Medical Center accumulated expenses related to prescription drugs used to treat COVID-19 patients. However, the cost of the prescription drugs was not reduced by amounts reimbursable from other sources, specifically reimbursed through third-party payors. Cause: The Medical Center incurred significant costs when treating COVID-19 patients that was not fully reimbursed through third-party payors. However, management reported in the HRSA reporting portal the full amount of the costs of the prescription drugs used to treat COVID-19 patients, including portions that were reimbursed through third-party payors instead of performing an analysis and claiming only the incremental cost related to COVID-19 treatments that were in excess of the reimbursed amounts. Effect: Expenses reported in the PRF reporting portal have not been reduced by amounts reimbursable from other sources, specifically reimbursements received from third-party payors. However, the Medical Center does have sufficient other expenditures and compliant lost revenues to recognize all funding received in the reporting period. Recommendation: We recommend that management continue to monitor and enhance its internal controls over federal award compliance to ensure that only eligible costs are included in amounts expended and that the same expenses are not reimbursed by other sources. Additionally, we recommend that management consider adjusting lost revenues in a future HRSA reporting period to deduct the unallowable costs to avoid "double dipping". View of Responsible Official: The Medical Center agrees with this finding.
2022-02 Recommendations: Management continue to monitor and enhance its internal controls over federal award compliance to ensure that only eligible costs are included in amounts expended and that the same expenses are not reimbursed by other sources. Management should consider adjustments lost revenues in future HRSA reporting period to deduct the unallowable costs to avoid ?double dipping.? Actions: Henry County Medical Center claimed as COVID expenses for HRSA reporting the cost of additional drugs used in treating COVID patients. This was based on information received by management at the beginning of the COVID pandemic. It was later learned that Medicare provided additional payments on claims related to patients being treated for COVID. This additional reimbursement was to help offset some of the additional cost incurred by providers. HRSA reporting will be adjusted to reflect the removal of the drug expenses as claimed expenditures at the next HRSA reporting period date of March 31, 2023. The reduction in expenses will be covered by loss of revenue so no additional impact on funds claimed related to COVID.
2021-002
FAC accepted this audit on April 18, 2023 — management decision was due October 18, 2023.
2021-001 Programs: COVID-19 - Provider Relief Fund CFDA Number: 93.498 Federal Agencies: U.S. Department of Health and Human Services Passed-Through Entities: N/A Award Number: N/A Award Year: Various Compliance Requirement: Reporting Questioned Costs: None Criteria: As required by the Provider Relief Fund General and Targeted Distribution Post-Payment Notice of Reporting Requirements, issued on June 11, 2021, when referring to revenues from patient care for the purposes of the calculation of lost revenues attributable to COVID-19 patient care was defined as: ??Patient care? means health care, services, and supports, as provided in a medical setting, at home/telehealth, or in the community. It should not include non-patient care revenue such as insurance, retail, or real estate revenues (exception for nursing and assisted living facilities? real estate revenues where resident fees are allowable); prescription sales revenues (exception when derived through the 340B program); grants or tuition; contractual adjustments from all third-party payors; charity care adjustments; bad debt; and any gains and/or losses on investments.? Condition and Context: The Medical Center elected to use the Lost Revenues Reporting Method of comparing 2019 actual revenue to 2020 actual revenue. When preparing the calculation, the Medical Center excluded certain reimbursement settlement accounts. Cause: The Medical Center erroneously omitted the related settlement general ledger accounts when financial data by payor was compiled for the calculations. Effect: The Medical Center has misstated the lost revenues when reporting the revenues within the Health Resources and Services Administration ("HRSA") reporting portal. However, the Medical Center does have sufficient expenditures and compliant lost revenues to recognize all funding received in the reporting period. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Management should also consider adjusting lost revenue calculations in future HRSA reporting periods. View of Responsible Official: The Medical Center agrees with this finding.
Show full finding ▾Hide full finding ▴2021-001 Programs: COVID-19 - Provider Relief Fund CFDA Number: 93.498 Federal Agencies: U.S. Department of Health and Human Services Passed-Through Entities: N/A Award Number: N/A Award Year: Various Compliance Requirement: Reporting Questioned Costs: None Criteria: As required by the Provider Relief Fund General and Targeted Distribution Post-Payment Notice of Reporting Requirements, issued on June 11, 2021, when referring to revenues from patient care for the purposes of the calculation of lost revenues attributable to COVID-19 patient care was defined as: ??Patient care? means health care, services, and supports, as provided in a medical setting, at home/telehealth, or in the community. It should not include non-patient care revenue such as insurance, retail, or real estate revenues (exception for nursing and assisted living facilities? real estate revenues where resident fees are allowable); prescription sales revenues (exception when derived through the 340B program); grants or tuition; contractual adjustments from all third-party payors; charity care adjustments; bad debt; and any gains and/or losses on investments.? Condition and Context: The Medical Center elected to use the Lost Revenues Reporting Method of comparing 2019 actual revenue to 2020 actual revenue. When preparing the calculation, the Medical Center excluded certain reimbursement settlement accounts. Cause: The Medical Center erroneously omitted the related settlement general ledger accounts when financial data by payor was compiled for the calculations. Effect: The Medical Center has misstated the lost revenues when reporting the revenues within the Health Resources and Services Administration ("HRSA") reporting portal. However, the Medical Center does have sufficient expenditures and compliant lost revenues to recognize all funding received in the reporting period. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Management should also consider adjusting lost revenue calculations in future HRSA reporting periods. View of Responsible Official: The Medical Center agrees with this finding.
2021-001 Recommendations: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Management should consider adjusting lost revenue calculations in future HRSA reporting periods. Actions: Henry County Medical Center owns a Rural Health Clinic and receives additional reimbursement from the State of Tennessee for treatment of Medicaid patients. This additional reimbursement is reported on internal financial statements as ?Other Operating Revenue.? When HRSA reporting was prepared, these funds were not included as part of Net Patient Revenue thus impacting the loss of revenue calculation. HRSA reporting will be adjusted to reflect these additional payments as part of the loss of revenue calculation at the next HRSA reporting period date of March 31, 2023.
2021-002 Programs: COVID-19 - Provider Relief Fund CFDA Number: 93.498 Federal Agencies: U.S. Department of Health and Human Services Passed-Through Entities: N/A Award Number: N/A Award Year: Various Compliance Requirement: Allowable Costs / Cost Principles Questioned Costs: None Criteria: The terms and conditions of the Provider Relief Fund state that funds are not to be used to reimburse expenses or lost revenue that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition and Context: During the process of identifying expenses that were incurred to prevent, prepare for or respond to the COVID-19 pandemic, it was noted that expenses related to prescription drugs used to treat COVID-19 patients were not reduced by amounts reimbursable from other sources, specifically reimbursed through third-party payors. Cause: The Medical Center incurred significant costs when treating COVID-19 patients that was not fully reimbursed through third-party payors. However, management reported in the HRSA reporting portal the full amount of the costs of the prescription drugs used to treat COVID-19 patients, including portions that were reimbursed through third-party payors instead of performing an analysis and claiming only the incremental cost related to COVID-19 treatments that were in excess of the reimbursed amounts. Effect: Expenses reported in the PRF reporting portal have not been reduced by amounts reimbursable from other sources, specifically reimbursements received from third-party payors. However, the Medical Center does have sufficient other expenditures and compliant lost revenues to recognize all funding received in the reporting period. Recommendation: We recommend that management continue to monitor and enhance its internal controls over federal award compliance to ensure that only eligible costs are included in amounts expended and that the same expenses are not reimbursed by other sources. Additionally, we recommend that management consider adjusting lost revenues in a future HRSA reporting period to deduct the unallowable costs to avoid "double dipping". View of Responsible Official: The Medical Center agrees with this finding.
Show full finding ▾Hide full finding ▴2021-002 Programs: COVID-19 - Provider Relief Fund CFDA Number: 93.498 Federal Agencies: U.S. Department of Health and Human Services Passed-Through Entities: N/A Award Number: N/A Award Year: Various Compliance Requirement: Allowable Costs / Cost Principles Questioned Costs: None Criteria: The terms and conditions of the Provider Relief Fund state that funds are not to be used to reimburse expenses or lost revenue that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition and Context: During the process of identifying expenses that were incurred to prevent, prepare for or respond to the COVID-19 pandemic, it was noted that expenses related to prescription drugs used to treat COVID-19 patients were not reduced by amounts reimbursable from other sources, specifically reimbursed through third-party payors. Cause: The Medical Center incurred significant costs when treating COVID-19 patients that was not fully reimbursed through third-party payors. However, management reported in the HRSA reporting portal the full amount of the costs of the prescription drugs used to treat COVID-19 patients, including portions that were reimbursed through third-party payors instead of performing an analysis and claiming only the incremental cost related to COVID-19 treatments that were in excess of the reimbursed amounts. Effect: Expenses reported in the PRF reporting portal have not been reduced by amounts reimbursable from other sources, specifically reimbursements received from third-party payors. However, the Medical Center does have sufficient other expenditures and compliant lost revenues to recognize all funding received in the reporting period. Recommendation: We recommend that management continue to monitor and enhance its internal controls over federal award compliance to ensure that only eligible costs are included in amounts expended and that the same expenses are not reimbursed by other sources. Additionally, we recommend that management consider adjusting lost revenues in a future HRSA reporting period to deduct the unallowable costs to avoid "double dipping". View of Responsible Official: The Medical Center agrees with this finding.
2021-002 Recommendations: Management continues to monitor and enhance its internal controls over federal award compliance to ensure that only eligible costs are included in amounts expended and that the same expenses are not reimbursed by other sources. Management should consider adjusting lost revenues in a future HRSA reporting period to deduct the unallowable costs to avoid ?double dipping.? Actions: Henry County Medical Center claimed as COVID expenses for HRSA reporting the cost of additional drugs used in treating COVID patients. This was based on information received by management at the beginning of the COVID pandemic. It was later learned that Medicare provided additional payments on claims related to patients being treated for COVID. This additional reimbursement was to help offset some of the additional cost incurred by providers. HRSA reporting will be adjusted to reflect the removal of the drug expenses as claimed expenditures at the next HRSA reporting period date of March 31, 2023. The reduction in expenses will be covered by loss of revenue so no additional impact on funds claimed related to COVID.
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