Why does our 1099-R list a large amount as gross distribution but we did not receive an RMD or any cash.

Did you perform a rollover?  If not, you'll need to contact the issuer to establish if a mistake was made and obtain a corrected form.  If you did perform a rollover, you will need to enter the information into your tax return.

For more information, see: Where do I enter an IRA rollover?