Audit 310010

2021‐001 – Internal Controls over Activities Allowed and Allowable Costs – Significant Deficiency in Internal Controls over Compliance Federal Program Information: Funding Agency: U.S. Department of Health and Human Services Title: Provider Relief Fund CFDA Number: 93.498 Federal Award Identification number Award Year: 2020‐21 Condition: There were 2 samples that the Entity could not provide supporting documentation and 21 samples that the employee was not paid the approved pay rate. Criteria: Per 2 CFR section 200.303(a) the entity must ‐ Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.403(g) – in order to be allowable under Federal awards, costs must be adequately documented and Per 2 CFR section 200.430(i) – Compensation – personal services – Standards for Documentation of Personnel Expenses, Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Questioned costs: Employee paid a rate other than the approved pay rate. Total dollar amount of $874 was divided by the total payroll population tested to get a 7% error and then multiplied by the total payroll expenditures of the program to get a questioned costs of $6,848. Effect: The Entity paid employees time at a rate not approved. In addition the Entity did not retain supporting documentation. Cause: The Entity did not retain supporting documentation for expenditures paid with federal funding and did not have approved pay rate documentation to support the pay rate employee was paid. Auditors’ Recommendation: The Auditor recommends that the Entity implement controls for documenting and retaining information on expenditures charged to federal awards to follow the requirements over 2 CFR Section 200.430(g)(i) and in addition the Entity is properly paying employees at the approved pay rate. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan.

2021‐001 – Internal Controls over Activities Allowed and Allowable Costs – Significant Deficiency in Internal Controls over Compliance Federal Program Information: Funding Agency: U.S. Department of Health and Human Services Title: Provider Relief Fund CFDA Number: 93.498 Federal Award Identification number Award Year: 2020‐21 Condition: There were 2 samples that the Entity could not provide supporting documentation and 21 samples that the employee was not paid the approved pay rate. Criteria: Per 2 CFR section 200.303(a) the entity must ‐ Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.403(g) – in order to be allowable under Federal awards, costs must be adequately documented and Per 2 CFR section 200.430(i) – Compensation – personal services – Standards for Documentation of Personnel Expenses, Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Questioned costs: Employee paid a rate other than the approved pay rate. Total dollar amount of $874 was divided by the total payroll population tested to get a 7% error and then multiplied by the total payroll expenditures of the program to get a questioned costs of $6,848. Effect: The Entity paid employees time at a rate not approved. In addition the Entity did not retain supporting documentation. Cause: The Entity did not retain supporting documentation for expenditures paid with federal funding and did not have approved pay rate documentation to support the pay rate employee was paid. Auditors’ Recommendation: The Auditor recommends that the Entity implement controls for documenting and retaining information on expenditures charged to federal awards to follow the requirements over 2 CFR Section 200.430(g)(i) and in addition the Entity is properly paying employees at the approved pay rate. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan.