El Rio Santa Cruz Neighborhood Health Center Inc.

Criteria: The Provider Relief Fund grant requires the submission of the PRF Report. One of the critical line items on the PRF Report is the calculation of Lost Revenue. The Center opted to utilize actual revenue/net patient charges (the Actuals) from patient care services for the computation of Lost Revenue. The Lost Revenue calculation serves as a pivotal component of the PRF Report, enabling the Center to demonstrate its eligibility for receiving grant funds and ensure compliance with the program's requirements. Condition: The Center intended to utilize the Provider Relief Fund (PRF) grant under the provision of Lost Revenue, and it met the eligibility criteria based on the 2020 budgeted method. However, the Center failed to accurately report its use of the Lost Revenue on the required PRF Report for the period ended March 31, 2023. Instead, the Center mistakenly reported that actual expenditures incurred would be charged to the grant. Cause: The Center lacked proper internal control over preparing and reviewing the required PRF Reports. Effect: The Center did not report the required Lost Revenue calculation on the PRF Report. Recommendation: We recommend that the PRF Reports are reviewed and approved by a management team member who is not involved in the preparation and has sufficient knowledge of the program's requirements.