Finding Text
Finding 2021-008 Improper Preparation of Schedule of Expenditures of Federal Awards
U.S. Department of Health and Human Services
COVID-19: HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19
Coverage Assistance Fund – Assistance Listing Number 93.461
Criteria: In accordance with 2 CFR 200 200.510(b), the auditee must prepare a SEFA for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502.
Condition: The Corporation’s SEFA for the year ended June 30, 2021, was initially prepared without federal expenditures totaling $1,222,859 for the HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund, Assistance Listing number 93.461.
Cause: The federal program expenditures for the HRSA COVID-19 Claims Reimbursement for the
Uninsured Program and the COVID-19 Coverage Assistance Fund, Assistance Listing number 93.461,
were omitted from the SEFA due to an oversight in the preparation of the SEFA.
Effect: Improper reporting of federal expenditures resulted in a material error on the SEFA leading to
inaccurate major program determination by the auditors. In this instance, the error did result in the identification of an additional major program.
Questioned costs: None.
Identification as a repeat finding, if applicable: 2020-005
Recommendation: We recommend the Corporation enhance the process and internal controls around the timely identification of federal awards and preparation of the SEFA to ensure accuracy and completeness of the SEFA.
View of responsible officials of the auditee: Management agrees with the finding and recommendation.