Audit 408962

Federal Program – COVID-19 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution; ALN 93.948; U.S. Department of Health and Human Services; FAIN – None; Award Year 2021 Criteria or Specific Requirement – Activities Allowed/Allowable Costs – Pub. L. No. 116-136, 134 Stat. 563 Condition – The Hospital has a lack of segregation of duties around approving, tracking, and reporting expenditures under the federal program. Cause – The Hospital did not have effective internal control processes and segregation of duties in place to ensure accurate review and approval of program expenditures. Effect – The Hospital has insufficient segregation of duties around approving, tracking, and reporting expenditures under the program, which could cause expenditures being charged to the award that are not allowable and incorrect reporting of expenditures to the Health Resources and Services Administrator (HRSA). Questioned Costs – N/A Context – In testing internal controls around the compliance requirement, expenditures were being purchased and approved by the same individual. No additional review of federal expenditures took place. Identification as a Repeat Finding, if Applicable – 2021-001 Recommendation – The Hospital should review and implement documented internal control processes that include proper segregation of duties around the review and approval of federal expenditures. Views of Responsible Officials and Planned Corrective Actions – The Hospital agrees with the finding and implemented a policy in September 2023 to ensure that any future funding is appropriately handled.