Marion County Hospital District #1

FINDING 2021-002 PROVIDER RELIEF FUND GENERAL AND TARGETED DISTRIBUTION EXPENSE REPORTING Program 93.498 COVID-19 Provider Relief Fund Criteria/Condition The federal program requires the reporting entity to correctly report allowable expenses by quarter in the reporting form completed for allowable expenditures through June 30, 2021. Cause The Hospital inadvertently miscalculated some of the costs that were included in the applicable reporting period resulting in the final total amount of cost being over reported. Effect The final amount of allowable Provider Relief Fund costs were overstated in reporting for the period ending June 30, 2021. Questioned costs Total questioned cost were $279,443. Context/Perspective Our audit procedures determined the Hospital?s workbook used to accumulate the costs reported under the Provider Relief Fund inadvertently included certain costs more than once. The error occurred due to the Hospital reporting certain amounts paid on a quarterly basis (prepaid) as the expense for each month versus the amounts being allocated correctly over applicable service period covered. This appears to be an isolated instance involving only certain prepaid costs. Recommendation We suggest the Hospital contact HRSA to determine the appropriate steps to correct the reporting error. Views of responsible officials and planned corrective actions We agree with the above noted finding. Even though we worked with consultants to help lower the risk of errors in reporting, this error did occur. We will work with HRSA to determine the appropriate steps to correct the noted error. We also have identified additional lost revenue during the reporting period that we believe can be used to offset the $279,443 of questioned costs. We plan on updating our lost revenue reporting during the period 4 reporting period.