Federal Award Finding and Questioned Costs
Finding Reference Number: 2022-003 Other
Federal Program Information:
Federal Agency: U.S. Department of Health and Human Services
Awards: Assistance Listing Number 93.498 COVID-19 – Provider Relief Fund and
American Rescue Plan (ARP) Rural Distribution
Aw...
Federal Award Finding and Questioned Costs
Finding Reference Number: 2022-003 Other
Federal Program Information:
Federal Agency: U.S. Department of Health and Human Services
Awards: Assistance Listing Number 93.498 COVID-19 – Provider Relief Fund and
American Rescue Plan (ARP) Rural Distribution
Award Periods: Period 3 – January 1, 2021 to June 30, 2022
Period 4 – June 30, 2021 to December 31, 2022
Description: Preparation of Schedule of Expenditures of Federal Awards
Type of Finding: Significant Deficiency in Internal Control Over Compliance
Recommendation: The System’s policy and procedures should be designed to ensure accurate reporting
as required by the Uniform Guidance.
View of Responsible Officials: There is no disagreement with the audit finding.
Corrective Action Planned: Management will design and ensure written policies and procedures will be
created outlining processes and control activities to ensure reporting to federal awarding agencies and
pass-through entities are complete and accurate.
During the current fiscal year, Inova began implementing enhancements to Oracle’s Grants Accounting
module. Once completed, this will assist management to automate certain processes and procedures that
were not available after the initial implementation. The enhanced reporting capabilities will include
automated reporting that will identify grants that expended federal awards.
Grants Accounting will schedule quarterly meetings with Finance and GMO leadership present. The
purpose of these meetings will be to review federal funding received that will ultimately be used in the
preparation of financial reports submitted to the appropriate governing agencies. The Director of Grants
Accounting will guide the meetings and obtain approvals from department leaders confirming amounts to be reported for federal grant awards. In preparation of the meetings, the Director of Grants Accounting
will prepare an agenda to guide discussions of grant terms and conditions and applicable FAQs, more
explicitly for awards received outside of Inova’s normal course of business (i.e., COVID-19). These
meetings will also provide an opportunity for Finance, GMO, and Grants Accounting leaders to review the
unique characteristics of the federal grant award programs on at least a quarterly basis. Meeting minutes
will be maintained to document discussions and actions to be taken. The minutes will also serve as support
for accounting memos related to special awards received that document Inova’s understanding of the
award and related reporting requirements. All accounting memos will be prepared by the Director of
Grants Accounting and reviewed by the Senior Director of Financial Reporting.
Name(s) of the Contact Person(s) Responsible for Corrective Action:
Christopher T. Smith, Vice President of Finance and Corporate Controller, 571-472-8122.
Christopher Trump, Senior Director of Financial Reporting, 571-373-2868.
Michael H. Lowen, Director, Grant Accounting, 571-472-8108.
Planned completion Date for Corrective Action Planned:
Ongoing with completion date of December 31, 2023.