Finding Text
Department of Health and Human Services
Federal Assistance Listing/CFDA #93.498
Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Applicable Federal Award Number and Year – Period 1 TIN #870212456
Reporting
Material Weakness in Internal Control Over Compliance and Noncompliance Not
Considered Material
Criteria: The District must establish and maintain effective internal control over federal
awards that provides reasonable assurance that the District is managing the federal awards
in compliance with federal statutes, regulations and terms and conditions of the federal
award.
Condition: Amounts reported for lost revenue did not agree to the supporting
documentation provided. Additionally, the District did not have internal controls in place to
review and approve reporting prior to submission.
Cause: The District did not have an internal control process in place to ensure the accuracy
of the reporting of key line items. Additionally, there was no internal control process in
place to review and approve the reporting prior to submission.
Effect: Four of the eight key line items on the reporting submitted to the Department of
Health and Human Services (HHS) for Period 1 contained errors. Ultimately, lost revenue
report was considered potentially understated.
Questioned Costs: None reported.
Context: All key line items were tested on the report to HHS for Period 1.
Repeat Finding from Prior Years: No
Recommendation: We recommend that management review the calculation for lost
revenues and ensure the amounts used for actual revenues agrees to the amounts
presented in the financial statements. Additionally, we recommend management develop a
control that involves review and approval of information to be reported separate from the
preparer prior to submission
Views of Responsible Officials: Management agrees with the finding.