Finding Text
Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year -Period 4 TIN #736060815 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Material Weakness in Internal Control Over Compliance 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: There was no documentation of review and approval of the expenditure listing, lost revenue calculation, or the Department of Health and Human Services (HHS) Period 4 report prior to submission of the HHS Period 4 report. Cause: The Authority did not have an adequate internal control policy in place to ensure review and approval of expenditures and lost revenue claimed under the federal program, as well as the HHS Period 4 report prior to submission. Effect: Without a secondary review and approval, there is a possibility that ineligible expenditures or lost revenue may be claimed under the program and the HHS Period 4 report may not be accurately completed. Questioned Costs: None. Context: There was one lost revenue calculation, one expenditure detail and one HHS Period 4 report and all were tested. Repeat Finding from Prior Years: Yes, finding number 2021-001. Recommendation: We recommend management implement policies and procedures to ensure a complete review of supporting documentation and any reporting to a federal agency prior to submission by an individual separate from the preparer. Views of Responsible Officials: Management agrees with the finding.