Finding Text
Information on the federal program: U.S. Department of Treasury, Assistance Listing No. 21.027
COVID-19 Coronavirus Fiscal Recovery Funds
Criteria: 2 CFR 200.302 and 2 CFR 200.303 require entities to establish and maintain internal
controls and financial management procedures to provide reasonable assurance the award is
managed in compliance with statutes, regulations, and terms and conditions of the award and to
ensure federal award expenditures are adequately supported by source documentation.
Condition: We tested controls over disbursements to 11 hospitals during the year. For each
hospital to receive funding they were to submit a staffing spreadsheet reporting their increased
staffing costs due to COVID. Of the 11 tested, supporting documentation for 3 hospitals was not
readily available. Additional information had to be obtained from the hospital to support the
information reported by the hospital in the staffing spreadsheet.
Cause: Salary information obtained in support of the staffing spreadsheet included Employees
Quarterly Federal Tax Return (941) and payroll registers. Additional general ledger information had
to be requested from the hospitals during the audit to reconcile to the amounts reported in the
staffing spreadsheet.
Effect: Internal Controls were not properly implemented to obtain source documentation to
adequately support the amounts reported by the hospitals as additional staffing costs.
Recommendation: We recommend the Organization strengthen its policies and procedures
surrounding disbursements to hospitals to ensure the amounts reported were accurate and source
documentation is retained to ensure compliance requirements.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the
findings. See Management’s View and Corrective Action Plan included at the end of the report.