COMMUNITY HEALTH CARE, INC.

Provider Relief Fund and American Rescue Plan Act (ARP) Rural Distribution Federal Assistance Listing No. 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement – Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) Condition – The Organization is required to prepare and submit period four Provider Relief Funding Reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs – Unknown Context – The period four Provider Relief Fund report was tested. The Organization selected option three to report lost revenues based on quarterly actual results of the dental and pediatrics service lines. The Organization did not account for the Iowa Medicaid wraparound payments within …

Corrective action: CHC agrees it did not allocate its Iowa Medicaid Wrap-Around payments to the Dental and Pediatric Services lines correctly. As the additional context states in the audit report, CHC agrees the departmental allocation did not affect its overall financial statements for the 2020, 2021, and 2022 quarters and did not affect its ability to fully obligate the distributed funds, with its corrected lost revenues reflecting $2,589,831 in lost revenues. CHC has a strong record of grant compliance demonstrated by its consistent compliance with its financial statement audits and its clean record of compliance with its HRSA surveyors. We take our grant compliance seriously and have adequate internal…

2022-001 Provider Relief Fund Federal Assistance Listing No. 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement ? Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Cost Principles (45 CFR 75.403) Condition ? The Organization is required to prepare and submit period one Provider Relief Funding Reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs ? Unknown Context ? The period one and period two Provider Relief Fund reports were tested. The Organization selected option one to report lost revenues based on quarterly actuals. The Organization had offsetting errors within their 2019 quarter two and three revenues related to patient care. The error did not impact the amount of Provider Relief Fund revenue that the Organization recognized. Effect ? Errors were made…

Corrective action: During CHC's annual audit, Management discovered $80,305.25 of self-pay revenue has been entered into an incorrect quarter in the provider relief reporting portal. This has resulted in a finding in the current year financial statement audit. Management has evaluated the finding and reviewed whether any funds need to be repaid and evaluated its controls around future provider relief reporting cycles. It has been determined that even if Self-Pay revenue were reclassified to the correct quarter, lost revenues would have been sufficient to keep the entire award. Therefore, no repayment is necessary. If allowed in future provider relief reporting periods CHC will correct the misreporting. In addi…