By Yann Reichelt, CPA, Business Assurance & Advisory Services Senior Manager
2021 Overview of Provider Relief Fund Audit and Reporting
The Provider Relief Fund (PRF) payments were provided to hospitals and other healthcare providers to support healthcare-related expenses or lost revenues attributable to COVID-19 for eligible providers who diagnose, test, or care for individuals with possible or actual cases of COVID-19.
The PRF program is administered by the Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services (HHS), under CFDA #93.498.
Summary of Key Updates
With the deadline to report on Period 1 PRF payments expired and Period 2 reporting due by March 31, 2022 (refer to reporting requirements), healthcare providers who received Period 1 and Period 2 payments need to turn their attention to satisfying the commercial entity audit requirement.
PRF audits for commercial entities with a year-end between June 30, 2021 and December, 31, 2021, are due as follows:
| Payment Received Period (Payment Exceeding $10,000 in Aggregate Received) | Deadline to Use Funds | Reporting Period Deadline | Audit Report Due Date | |
|---|---|---|---|---|
| Period 1 | From April 10, 2020 to June 30, 2020 | June 30, 2021 | November 30, 2021 | September 30, 2022* |
| Period 2 | From July 1, 2020 to December 31, 2020 | December 31, 2021 | March, 31, 2022 | September 30, 2022* |
* Audit reports are due the earlier of 30 calendar days after receipt of the audit or 9 months after the fiscal year. The Office of Management and Budget (OMB) issued Memo M-21-20, which allowed entities with a year-end through June 30, 2021 to delay their submission by 6 months; thus, their reporting deadline is the same as calendar year-end entities.
Additionally, the Government Audit Quality Center received guidance from HHS regarding the specific audit requirements, which are outlined below:
| GAGAS Financial Audit | Single Audit | Program-Specific Audit (2 CFR 200/45 CFR Section 75) | |
|---|---|---|---|
| Criteria for Each Option | Entity has awards under only one or multiple HHS programs | Entity has awards under only one or multiple HHS programs | Entity has awards under only one HHS program |
| Audit of Entity’s Financial Statements | Not required | Required (performed under GAGAS) | Not required |
| Presentation of HHS Schedule | Schedule of specific element of a financial statement | Schedule of expenditures of federal awards (SEFA) | Schedule of specific element of a financial statement |
| Auditor Reporting on the Schedule | Opinion on the schedule under AU-C 805 | In addition to the opinion on the financial statements, an in-relation- to opinion on the SEFA under AU-C 725 | Opinion on the schedule under AU-C 805 |
| GAGAS Reporting on Internal Control over Financial Reporting and Compliance and Other Matters | Required (as it relates to the schedule under AU-C 805) | Required (as it relates to the financial statements as a whole) | See chapter 14 of the GAS-SA Guide |
| Auditor Opinion on Compliance and Reporting on Internal Control Over Compliance | Not required | Required | Required |
About the Author
Yann Reichelt, CPA, Business Assurance & Advisory Services Senior Manager
Yann joined the Business Assurance and Advisory Services group in 2014. Yann has experience with auditing procedures, financial reporting, business process reviews, and evaluation of internal controls.
Yann is a leader in Keiter’s Healthcare Industry Services practice and specializes in Provider Relief (PRF) Audits. Yann is also a member of the Firm’s Not-for-Profit team.
More Insights from Yann ReicheltThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
