MONTAGE HEALTH AND RELATED CORPORATIONSNon-Profit

Criteria: The Organization should have appropriate internal controls in place to ensure that reporting requirements are met and amounts utilized in reports are calculated accurately and in accordance with 45 CFR 75.342. Condition and Context: The Period 1 Provider Relief Fund (PRF) report submitted during the year ended December 31, 2021 was tested. The Organization elected to use Lost Revenues Option 2 Budgeted Revenue to report lost revenue based on quarterly actuals vs. budget, however, the budgets used to have been approved before March 27, 2020. The 2021 calendar year budget was not approved until after that date. Cause: PRF guidance was not thoroughly reviewed and researched. Effect: There was no impact to total funding received or retained by the Organization due to the error. The Organization?s lost revenue as calculated for the first 2 quarters of 2020 generated more than sufficient lost revenue to justify the total funding received by the entire Organization as reported on the Schedule of Expenditures for Federal Awards (?SEFA?). As such, the total amount of funding recognized on the basis of lost revenue for period 1 was accurate and the amount reported per the SEFA was also accurate. Repeat Finding: This is not a repeat finding. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Review controls should be in place by someone other than the preparer of the report to ensure information is accurate prior to submission of the report.