Finding 12222 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 16382
Auditor: Wipfli LLP

AI Summary

  • Core Issue: Internal controls over payroll compliance were ineffective, leading to inaccurate recording of disbursements.
  • Impacted Requirements: Compliance with the Provider Relief Fund criteria under the CARES Act, specifically regarding allowable health care expenses.
  • Recommended Follow-Up: Management should review all payroll expenditures for accuracy and compliance to prevent future discrepancies.

Finding Text

Condition: The Corporation?s internal controls over compliance related to payroll were not effective. During the audit, it was determined that 1 of the 40 payroll disbursements tested was not recorded accurately under the Provider Relief Fund. One of the payroll expenditures tested was an amount greater than the support showed and that portion is unallowable. However, it was noted that the Corporation had sufficient expenditures that covered the portion of the expenditure that was unallowed. Criteria: The Provider Relief Funds were provided under the Coronavirus Aid, Relief and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Cause: Management oversight. Effect: The Corporation?s internal controls around compliance were not effective. Recommendation: We recommend that management review all expenditures for accuracy and allowability under the criteria provided by the Department of Health and Human Services. However, it was noted that the Corporation has enough excess lost revenue to cover the disbursement noted above and retain the grant funding. View of Responsible Official: Management will review calculations and support for all payroll expenditures to ensure accuracy in future reporting.

Corrective Action Plan

Finding #2022-001: Internal Controls Over Compliance Related to Payroll; Federal Program: Provider Relief Fund (93.498); Response: We will review department documentation of hours allocated to grants; Responsible party: Kevin Sander, Controller; Estimated Completion: The very next payroll submission.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 588664 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $911,921