Finding 2022-002: Internal control deficiency over review of payroll expenditures. Identification of the federal program: Assistance Listing Number 93.498: ? COVID-19 ? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ? U.S. Department of Health and Human Services ? Federal award identification number ? Not Applicable ? Federal award year ? January 1, 2020 to June 30, 2022 Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A Chapter II Part 200 Subpart D 200.303 Internal controls. The non-Federal entity must: (a) 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). Condition: We observed management did not have effective internal controls in place to ensure certain payroll expenditures were reviewed. Cause: Management did not have effective internal controls in place throughout the period to ensure payroll expenditures were reviewed. Effect or potential effect: Payroll expenditures were not supported by effective internal controls. Questioned costs: None. Context: During our internal control testing in the prior year over activities allowed or unallowed and allowable costs/cost principles, we observed certain payroll expenditures were not reviewed. Management has not remediated this internal control over review of payroll expenditures in the current year. The total payroll expenditures reported in the provider relief fund report in the current year was $9,774,579. Identification as a repeat finding, if applicable: Yes ? 2021-001. Recommendation: We recommend that management develop and implement effective internal controls to ensure payroll expenditures are reviewed. Views of responsible officials: Additional internal controls to ensure payroll expenditures are reviewed were implemented in late FY22 by adopting a new approach to ensure compliant timekeeping. The new approach includes the following steps: revised the current timekeeping policy to clarify employee and manager responsibilities, modified ?failure to comply? provisions, deployed educational programs for both management and staff, reviewed/improved Kronos Time and Attendance system automated notifications, and training resources have been made available to management and staff via our Scripps intranet site. Leadership monitors policy compliance by individual employee and managers via systemwide reporting on a biweekly basis.
Finding 2022-001: Internal control deficiency over review of payroll expenditures. Identification of the federal program: Assistance Listing Number 10.557: ? WIC Special Supplemental Nutrition Program for Women, Infants, and Children ? U.S. Department of Agriculture ? Federal award identification number ? Not Available ? Federal award year ? October 1, 2019 to September 30, 2022 ? Pass-through entity ? California Department of Public Health ? Pass-through award identification number ? 19-10188 Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A Chapter II Part 200 Subpart D 200.303 Internal controls. The non-Federal entity must: (a) 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). Condition: During our testing over payroll expenditures, we observed management did not have effective internal controls in place to ensure certain payroll expenditures were reviewed. Cause: Management did not have effective internal controls in place throughout the period to ensure payroll expenditures were reviewed. Effect or potential effect: Payroll expenditures were not supported by effective internal controls. Questioned costs: None. Context: During our internal control testing over activities allowed or unallowed, allowable costs/cost principles, and period of performance, we obtained a listing of 538 payroll expenditures and selected a sample of 40 to test for effective review of the expenditure. The total value of the 40 payroll expenditures selected was $70,152 out of the total payroll expenditures of $671,357. There were 2 ($821) out of 40 ($70,152) selections where the payroll expenditures were not reviewed. The 2 selections were for allowable activities under this program, and therefore, no noncompliance was noted in our testing. Identification as a repeat finding, if applicable: No. Recommendation: We recommend that management develop and implement effective internal controls to ensure payroll expenditures are reviewed. Views of responsible officials: Additional internal controls to ensure payroll expenditures are reviewed were implemented in late FY22 by adopting a new approach to ensure compliant timekeeping. The new approach includes the following steps: revised the current timekeeping policy to clarify employee and manager responsibilities, modified ?failure to comply? provisions, deployed educational programs for both management and staff, reviewed/improved Kronos Time and Attendance system automated notifications, and training resources have been made available to management and staff via our Scripps intranet site. Leadership monitors policy compliance by individual employee and managers via systemwide reporting on a biweekly basis.
Finding 2022-002: Internal control deficiency over review of payroll expenditures. Identification of the federal program: Assistance Listing Number 93.498: ? COVID-19 ? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ? U.S. Department of Health and Human Services ? Federal award identification number ? Not Applicable ? Federal award year ? January 1, 2020 to June 30, 2022 Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A Chapter II Part 200 Subpart D 200.303 Internal controls. The non-Federal entity must: (a) 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). Condition: We observed management did not have effective internal controls in place to ensure certain payroll expenditures were reviewed. Cause: Management did not have effective internal controls in place throughout the period to ensure payroll expenditures were reviewed. Effect or potential effect: Payroll expenditures were not supported by effective internal controls. Questioned costs: None. Context: During our internal control testing in the prior year over activities allowed or unallowed and allowable costs/cost principles, we observed certain payroll expenditures were not reviewed. Management has not remediated this internal control over review of payroll expenditures in the current year. The total payroll expenditures reported in the provider relief fund report in the current year was $9,774,579. Identification as a repeat finding, if applicable: Yes ? 2021-001. Recommendation: We recommend that management develop and implement effective internal controls to ensure payroll expenditures are reviewed. Views of responsible officials: Additional internal controls to ensure payroll expenditures are reviewed were implemented in late FY22 by adopting a new approach to ensure compliant timekeeping. The new approach includes the following steps: revised the current timekeeping policy to clarify employee and manager responsibilities, modified ?failure to comply? provisions, deployed educational programs for both management and staff, reviewed/improved Kronos Time and Attendance system automated notifications, and training resources have been made available to management and staff via our Scripps intranet site. Leadership monitors policy compliance by individual employee and managers via systemwide reporting on a biweekly basis.
Finding 2022-001: Internal control deficiency over review of payroll expenditures. Identification of the federal program: Assistance Listing Number 10.557: ? WIC Special Supplemental Nutrition Program for Women, Infants, and Children ? U.S. Department of Agriculture ? Federal award identification number ? Not Available ? Federal award year ? October 1, 2019 to September 30, 2022 ? Pass-through entity ? California Department of Public Health ? Pass-through award identification number ? 19-10188 Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A Chapter II Part 200 Subpart D 200.303 Internal controls. The non-Federal entity must: (a) 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). Condition: During our testing over payroll expenditures, we observed management did not have effective internal controls in place to ensure certain payroll expenditures were reviewed. Cause: Management did not have effective internal controls in place throughout the period to ensure payroll expenditures were reviewed. Effect or potential effect: Payroll expenditures were not supported by effective internal controls. Questioned costs: None. Context: During our internal control testing over activities allowed or unallowed, allowable costs/cost principles, and period of performance, we obtained a listing of 538 payroll expenditures and selected a sample of 40 to test for effective review of the expenditure. The total value of the 40 payroll expenditures selected was $70,152 out of the total payroll expenditures of $671,357. There were 2 ($821) out of 40 ($70,152) selections where the payroll expenditures were not reviewed. The 2 selections were for allowable activities under this program, and therefore, no noncompliance was noted in our testing. Identification as a repeat finding, if applicable: No. Recommendation: We recommend that management develop and implement effective internal controls to ensure payroll expenditures are reviewed. Views of responsible officials: Additional internal controls to ensure payroll expenditures are reviewed were implemented in late FY22 by adopting a new approach to ensure compliant timekeeping. The new approach includes the following steps: revised the current timekeeping policy to clarify employee and manager responsibilities, modified ?failure to comply? provisions, deployed educational programs for both management and staff, reviewed/improved Kronos Time and Attendance system automated notifications, and training resources have been made available to management and staff via our Scripps intranet site. Leadership monitors policy compliance by individual employee and managers via systemwide reporting on a biweekly basis.