Finding Text
2022-001 - Material Weakness
Federal agency: U.S. Department of Health and Human Services (HHS)
Federal program title: COVID-19 Testing for Rural Health Clinic (RHCCTM)
Assistance Listing No.: 93.697
Criteria: Proper controls over financial reporting include preparation of a complete and accurate schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule.
Condition: The Hospital does not have an internal control system designed to provide for a complete and accurate Schedule. The Hospital did not include two federal grants in the 2022 Schedule. These grants totaled $571,332.
Cause: The Hospital did not have adequate internal controls to ensure all grants were identified that needed to be included on the Schedule.
Effect: The Hospital did not properly reflect all grants in its 2022 Schedule.
Questioned costs: None reported.
Recommendation: We recommend the Hospital design and implement controls, including levels of review, to ensure accuracy and completion of the Hospital’s Schedule.
Views of responsible officials of the auditee: Management agrees with the finding. See management’s corrective action plan.