Finding Text
Identification of the federal program:Federal Grantor: U.S. Department of Health and Human ServicesAssistance Listing No.: 93.461, COVID-19 HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund (Uninsured Program)Award Period: January 1, 2022 ? March 31, 2022Criteria or specific requirement (including statutory, regulatory or other citation):2 CFR 200.510 requires that the ?auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with Section 200.502.? These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework? issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).?2 CFR 200.508 Schedule of expenditures of Federal awards. ?The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with ? 200.502.? Condition:The draft Schedule of Expenditures of Federal Awards (the Schedule) prepared by the Corporation was misstated. The expenditures were understated related to the Uninsured Program. The final Schedule was corrected for the differences identified.Cause:Management did not design internal controls to ensure appropriate accumulation of the data necessary to complete the Schedule.Effect or potential effect:Federal expenditures may be inappropriately included or excluded from the Schedule.Questioned costs:None.Context:Total Uninsured Program expenses were $682,332 for the year ended December 31, 2022.Total expenses included on the draft Schedule were $40,733,999 for the year ended December 31, 2022. Total expenses included on the final Schedule were $41,416,331 for the year ended December 31, 2022.Identification as a repeat finding:No.Recommendation:Management should assess its internal controls over the identification of federal expenditures to ensure the Schedule is complete.Views of responsible officials:The Corporation agrees with the finding and has developed a plan to correct the finding. As of August 16, 2023, the Corporation has implemented the following changes, which we believe address future internal control considerations should the program be reinstated. The below controls additionally address the need to properly maintain evidence of controls. The below wording was added to the SEFA Preparation Memo, which is used to prepare the SEFA each year.a. Grants listed on the prior year are reviewed to determine if the grant is still active or if the grant has closed out.i For grants that have closed, the ending dates of the grant are verified, and current year activity is reviewed to ensure that all activity for that grant has been properly accounted for.