Finding 1019320 (2022-002)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 312508
Organization: Copa Health, Inc. (AZ)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Organization lacks proper internal controls to ensure that expenditures claimed under the Provider Relief Fund are reviewed and approved by an independent individual.
  • Impacted Requirements: Non-compliance with 2 CFR 200.303(a) due to inadequate documentation and discrepancies in expenditure amounts.
  • Recommended Follow-Up: Implement a control process to document the review and approval of the final expenditure listing to ensure accuracy and compliance.

Finding Text

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 Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.Condition: The Organization?s final expenditure listing identified as eligible and claimed under the Provider Relief Fund program lacked documentation of its review by a separate individual outside of the preparer. The support for two out of 60 expenditures tested differed in amounts from the amount on the tracking spreadsheet. Three of the 60 invoices did not include evidence of approval for payment.Cause: The Organization did not have an internal control process in place to ensure the review and approval of eligible expenditures that were summarized from the underlying supporting spreadsheets to the final expenditure listing was documented or that amounts reported were correct. The summary spreadsheet was used to claim allowable costs under the federal program.Effect: There is a possibility that ineligible expenditures may be claimed under the program.Questioned Costs: None reported.Context: Summary level testing was performed over certain payroll related expenditures. In addition, a nonstatistical sample of 60 transactions totaling $511,234 out of $1,115,520 were detail tested. Net amounts differed from the support by $10.Repeat Finding from Prior Years: NoRecommendation: We recommend the Organization implement a control process which includes maintaining documentation of the review and approval of the summarized final expenditure listing used to claim the allowable costs under the federal program.Views of Responsible Officials: Management agrees with the finding

Categories

Allowable Costs / Cost Principles Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 442878 2022-002
    Material Weakness
  • 442879 2022-003
    Material Weakness
  • 1019321 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $1.50M
14.218 Community Development Block Grants/entitlement Grants $101,811