Audit 405309

Finding 2025-001- Allowable Activities/Costs and Period of Performance Significant Deficiency in Internal Control over Compliance Federal Assistance Listing Number: 97.036 – COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Federal Award Identification Number: 4528DR-MS (2020) Federal Agency: U.S. Department of Homeland Security Pass-through Entity: Mississippi Emergency Management Agency Criteria: Per 2 CFR 200.430(i), personnel costs charged to federal grants are required to be supported by documentation including time records. Per 2 CFR 200.303, a non-federal entity must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. Condition: Our audit procedures over contracted personnel services disclosed that timesheets supporting the invoices from independent contractors were not reviewed and approved by a supervisor at the Hospital. Cause: The absence of proper approval for the timesheets tested appears to be lack of management oversight. Effect: Since the timesheet is the support for the invoices charged by the independent contractors, unauthorized charges can result from undocumented reviews and approvals. Questioned Costs: No questioned costs were identified due to finding only being a deficiency in internal control with no noncompliance. Perspective: Four timesheets in a sample of fifty-nine timesheets were not approved by management. The sample was not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Hospital enforce their policy requiring supervisory review and approval for timesheets to ensure time recorded by independent contractors is valid and accurate for work performed. View of Responsible Officials: See management’s response to the finding in the accompanying Corrective Action Plan.