PRF distributions: Delayed reporting and new reporting portal

Aug 01, 2021
Audit Other accounting topics Hospitals & health systems Financial reporting

On June 11, 2021, the U.S. Department of Health and Human Services (HHS) amended its reporting requirements to extend the period of availability of funds for all Provider Relief Fund (PRF) distributions received subsequent to June 30, 2020. The period of availability of funds is based on the date the payment is received. Among other provisions, the June 11, 2021 HHS guidance also delayed the required reporting of utilization for PRF distributions received after June 30, 2020. Recipients will have a 90-day period to complete reporting (rather than a 30-day reporting period).

On July 1, 2021, HHS opened the PRF Reporting Portal and published a related User Guide and Frequently Asked Questions (FAQ) document. Additionally, HHS continues to issue periodic updates to its PRF FAQ document. As of each reporting period end, it is important for reporting entities to give careful consideration to the financial statement ramifications of these and any additional PRF-related developments.

Recipients of PRF funds are encouraged to review the Addendum to the 2020 Office of Management and Budget (OMB) Compliance Supplement released in December 2020 and to look for additional guidance with the issuance of the 2021 OMB Compliance Supplement. The Addendum addresses compliance requirements for recipients of PRF funds and an important change in the timing of the inclusion of PRF funds on the recipient’s Schedule of Expenditures of Federal Awards (SEFA), as well as extended filing deadlines for PRF recipients’ Single Audits. The 2021 OMB Compliance Supplement is expected to include further clarifying requirements and guidance, including a delay in reporting of PRF funds in the SEFA for recipients with fiscal years ended December 31, 2020 through June 29, 2021, which also is discussed in the PRF FAQ.