Audit 55247

Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #237094247 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Medical Center?s eligible expenses listing had errors when agreed to underlying supporting documentation. Cause: The Medical Center?s internal controls in place to review the listing of eligible expenditures did not identify the errors. Effect: The expenses reported were understated compared to the listing of eligible expenses attributed to COVID. There is potential that expenses identified related to federal awards may not be accurate. Questioned Costs: None. Context: A sample of 10 expenditures totaling $1,087,193 out of a total population of 37 expenditures totaling $1,417,999 were tested and 2 selections contained errors. The result of the error was an understatement of eligible expenses based on the supporting documentation. Repeat Finding from Prior Years: Yes, finding 2021-003 Recommendation: We recommend the Medical Center implement new control process which ensures amounts identified as eligible are compared to supporting documentation for accuracy. Views of Responsible Officials: Management agrees with the finding.

Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #237094247 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Medical Center?s eligible expenses listing had errors when agreed to underlying supporting documentation. Cause: The Medical Center?s internal controls in place to review the listing of eligible expenditures did not identify the errors. Effect: The expenses reported were understated compared to the listing of eligible expenses attributed to COVID. There is potential that expenses identified related to federal awards may not be accurate. Questioned Costs: None. Context: A sample of 10 expenditures totaling $1,087,193 out of a total population of 37 expenditures totaling $1,417,999 were tested and 2 selections contained errors. The result of the error was an understatement of eligible expenses based on the supporting documentation. Repeat Finding from Prior Years: Yes, finding 2021-003 Recommendation: We recommend the Medical Center implement new control process which ensures amounts identified as eligible are compared to supporting documentation for accuracy. Views of Responsible Officials: Management agrees with the finding.