Finding Text
Finding Number 2024-007: FEMA Reporting (Significant Deficiency in Internal Control over compliance -Reporting)
FALN Number 97.036; Federal Agency/Pass-through Entity – Program Name COVID 19 - Disaster Grants – Public Assistance (Presidentially Declared Disasters); Award Number FEMA-4482-DR-CA, Cal OES ID: 001-91020; Award Year 2023-2024
Criteria: 2024 Compliance Supplement and 2 CFR 200.303(a) stated that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and terms and conditions of the federal award.
Condition/Context: As a result of our audit procedures, we noted the only reimbursement request submitted to the grantor did not have clear evidence of preparer and reviewer of the report.
Repeat Finding from Prior Year(s): No.
Cause and Effect: The Health System did not have proper controls in place to ensure reimbursement request is prepared and reviewed by separate individuals with evidence of review documented and retained, which could lead to inaccurate information being reported and or submitted for reimbursement.
Questioned Cost: None
Recommendation: We recommend management implement policies and procedures to ensure reimbursement request is prepared and reviewed by separate individuals with evidence of review documented.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. The Health System will ensure that the FEMA reimbursement requests have clear evidence of the individuals preparing and reviewing of the submission. Documentation will be maintained to evidence preparation and review process.