Finding Text
Federal agency: U.S. Department of Health and Human Services Other Programs
Federal program title: COVID-19 Provider Relief Funding and American Rescue Plan Rural Distribution
CFDA Number: 93.498
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: Period 4
Type of Finding: Significant Deficiency in Internal Control in and over Compliance
Compliance Requirement: Reporting
Criteria or specific requirement: Surrounding reporting activities, the Medical Center’s internal controls should be designed to assure all reporting completed under program guidelines.
Condition: During our testing, we identified the Medical Center did not have internal controls in place to ensure reporting was completed in accordance with HHS guidelines.
Questioned costs: None
Context: During our testing, it was identified that differences in the Medical Center’s accumulation of lost revenues by quarter occurred compared to actual results. Overall, the accumulated calculation of lost revenues was not impacted but the presentation by quarter was.
Cause: The Medical Center’s spreadsheets used to accumulate the lost revenue information had formula problems.
Effect: The auditor noted no instances of noncompliance with the provisions of lost revenues claimed, as the overall amount claimed was accurate; however, the internal controls around compliance over quarterly reporting were not effective.
Repeat Finding: Yes
Recommendation: We recommend the Medical Center design controls to ensure that reporting is completing in accordance with latest HHS guidelines.
Views of responsible officials: There is no disagreement with the audit finding.