Audit 34916

2022-002 ? Allowable Costs ? Noncompliance and Significant Deficiency in Internal Control over Compliance Federal Agency: Department of Health and Human Services Program Name: Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 Award Number: 602-255-22001 Assistance Listing Number: 93.665 Criteria: Uniform Guidance requires nonfederal entities to establish and maintain effective internal controls over the Allowable Costs requirement for federal awards. Condition: CPGH manually tracks the hours charged to grant program and calculates reported expenses based on approved pay rates by the accounting department. After initial communication of the rates there is no control in place verify the rate being charged to the program is accurate based on employee records. Central Peninsula General Hospital did not accurately charge the salary of an employee to the program based on that employee?s approved rates. Cause: Sufficient controls were not in place to ensure salary expenses were being charged to the program accurately. Effect or potential effect: Unallowable costs were charged to the program. Questioned costs: None identified. Context: During our testwork over Allowable Expenditures we noted a difference between the approved pay rate of one employee and what was being used to calculate what to charge to the grant. Identification as a repeat finding: Not applicable, not a repeat finding. Recommendation: We recommend Central Peninsula General Hospital design and implement internal control procedures to ensure compliance with the allowable costs requirements are met. Views of Responsible Officials and Corrective Action: Management concurs with the finding. Central Peninsula General Hospital has taken corrective action for the audit finding.

2022-002 ? Allowable Costs ? Noncompliance and Significant Deficiency in Internal Control over Compliance Federal Agency: Department of Health and Human Services Program Name: Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 Award Number: 602-255-22001 Assistance Listing Number: 93.665 Criteria: Uniform Guidance requires nonfederal entities to establish and maintain effective internal controls over the Allowable Costs requirement for federal awards. Condition: CPGH manually tracks the hours charged to grant program and calculates reported expenses based on approved pay rates by the accounting department. After initial communication of the rates there is no control in place verify the rate being charged to the program is accurate based on employee records. Central Peninsula General Hospital did not accurately charge the salary of an employee to the program based on that employee?s approved rates. Cause: Sufficient controls were not in place to ensure salary expenses were being charged to the program accurately. Effect or potential effect: Unallowable costs were charged to the program. Questioned costs: None identified. Context: During our testwork over Allowable Expenditures we noted a difference between the approved pay rate of one employee and what was being used to calculate what to charge to the grant. Identification as a repeat finding: Not applicable, not a repeat finding. Recommendation: We recommend Central Peninsula General Hospital design and implement internal control procedures to ensure compliance with the allowable costs requirements are met. Views of Responsible Officials and Corrective Action: Management concurs with the finding. Central Peninsula General Hospital has taken corrective action for the audit finding.