Finding Text
epartment of Health and Human Services Federal Financial Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 5 TIN# 910171250
Activities Allowed or Unallowed, Allowable Cost/Cost Principles
Material Weakness in Internal Control over Compliance and Noncompliance
Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: Confluence Health claimed and reported expenditures that contained errors based upon the underlying documentation.
Cause: Confluence Health did not have adequate internal controls policy in place to ensure expenditures claimed were accurate and based upon underlying records.
Effect: There is a potential that significant costs may be claimed and reported may not be supported during a subsequent examination.
Questioned Costs: $89,582.
Context: A nonstatistical sample of 60, supplies, services, and payroll transactions out of a population of approximately 5,215 totaling $5,006,903 were selected for testing. The sample contained errors in two transactions in which the amounts claimed on the Period 5 report were not supported by payroll records. The amounts claimed not supported by payroll records totaled $89,582 out of a total sample value of $2,615,445.
Repeat Finding from Prior Years: No.
Recommendation: We recommend that management modify internal control policies to ensure amounts claimed for this program agree to underlying documentation.
Views of Responsible Officials: Management agrees with the finding.