Observations:
Based on review of the facility submitted application for renewal of the license, it was determined that the facility failed to submit an annual financial report which shall include the following:
(i) Audited financial statements prepared in accordance with generally accepted accounting principles (GAAP). If GAAP requires consolidated financial statements, then consolidated statements shall be provided. (The GAAP indicates that the following is included in and audited financial statement: Balance Sheet, Cash Flow Statement, Income Statement, Statement of Shareholder Equity Changes and an auditor opinion)
(ii) A visual representation of the current ownership structure, which shall include parent companies, shareholders, and any related parties of the persons identified in paragraphs (1) through (6). (this would be an organizational chart rather than a list)
(iii) A supplemental schedule of annual gross revenues, prepared in accordance with GAAP. The supplemental schedule shall be broken out by payor type.
Findings:
Review of the submitted application revealed that there was no audited report and no supplement schedule of annual gross revenues by payer type contained in the application.
The facility failed to meet the requirements as set forth in 28 Pa Code 201.13 c.
| | Plan of Correction - To be completed: 04/08/2024
NHA received notification on a couple of occasions that the annual financial report, and supporting documents illustrating a visual representation of ownership, and the supplemental schedule of annual gross revenues that was submitted was rejected because the document would not upload appropriately.
NHA reached out to the Department, and it was determined that the document's name was saved with a symbol, which did not allow it to be uploaded in the Department's licensing site.
NHA was provided with education on saving, uploading the documents in the Department's website. The document was renamed, and the symbol (+) was removed.
NHA checked other attachments submitted for the licensing renewal to ensure that they were uploaded and saved appropriately, and that they did not have any symbols to their names.
Outcome will be addressed in QAPI to ensure that Administrator and designee are aware of the requirement of the financial report needed for licensing renewal. This also references document illustrating the visual representation of ownership structure, and the schedule of annual gross revenue according to GAAP, and the process for uploading documents in the Department's portal to ensure that it is saved and uploaded appropriately.
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