Finding 1077673 (2023-001)

2023-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relied Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 5 and 6 TIN #237293874; #810540517; #371518772; #810413632; #810420653 Department of Health and Human Services All grant awards from pass-through entities Federal Assistance Listing #93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crisis Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria –A good system of internal accounting control contemplates an adequate system for preparing the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition – The Corporation does not have an internal control system designed to provide for a complete and accurate Schedule being prepared for audit. Cause – During the course of our engagement, we noted a material program missing from the Schedule, which if not included, would have resulted in a material misstatement of the Corporation’s Schedule. A full reconciliation of the various grant accounts was not completed in connection with the preparation of the Schedule. Effect – This control deficiency resulted in us having to assist in the preparation of the Schedule and would have resulted in a material misstatements to the Schedule that was not prevented, or detected and corrected, by internal personnel in a timely manner. Questioned Costs – None reported. Context/Sampling – Sampling was not used Repeat Findings from Prior Years – Yes Recommendation – We recommend that management update procedures and controls over tracking and recording of federal programs within the Schedule, including a reconciliation to the various grant accounts. Views of Responsible Officials – Management agrees with the finding.