Finding 1057733 (2023-004)

Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN#550559322 Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards and accompanying notes to the schedule of expenditures of federal awards. Condition: The Clinic does not have an internal control system designed to ensure the schedule of expenditures of federal awards is complete and accurate. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Clinic meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Clinic would not be able to draft a complete and accurate schedule of expenditures of federal awards without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: We recommend management continually be aware of the financial reporting requirements relating to the Clinic’s schedule of expenditures of federal awards and the internal controls that impact financial reporting. View of Responsible Officials: Management agrees with the finding.