Finding 28699 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-27
Audit: 28806
Organization: Rs Eden (MN)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Organization reported $226,571 in inaccurate expenses for the HHS special report due to a lack of internal controls.
  • Impacted Requirements: Compliance with 2 CFR 200.33(a) requires effective internal controls for accurate reporting of federal awards.
  • Recommended Follow-Up: Enhance internal control policies to ensure all HHS reports are reviewed and approved before submission.

Finding Text

2022-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR 200.33(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 statues, regulations, and conditions of the federal award. The Organization is required to submit an accurate report to HHS for each filing period of funds were received. Condition: The Organization erroneously reported $226,571 in expenses on the Period 4 Department of Health and Human Services special report. Cause: The Organization did not have an internal control process in place to ensure the reporting portal input fields for expenses was accurate. Effect: While the calculation error provided a difference between the lost revenues on the HHS special report and the lost revenue calculation, the Organization had excess lost revenues available to be applied. This reporting error also indicated there is a lack of policies governing the review and approval of the HHS special report. Questioned Costs: None reported. The Organization had excess lost revenues available to be applied. Context: Key line items were tested on the Period 4 Department of Health and Human Services special report. The HHS special reports included total expense errors of $226,571. The Organization had excess lost revenues from the Period 4 HHS reports that totaled $2,362,453. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all reports to HHS are reviewed and approved prior to submission to ensure accuracy of the reports and meet the requirements of the federal program . Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2022-001 Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Award Number and Year: Period 4 TIN #411948604 CFDA #93.498 Finding Summary: The Organization erroneously reported $226,571 in expenses on the Period 4 Department of Health and Human Services special report. Responsible Individuals: Caroline Hood, President & CEO Paul Puerzer, Chief Financial Officer Corrective Action Plan: A policy will be developed outlining the controls to be followed for filing reports with Federal Agencies. This policy will reflect the procedures needed for proper internal controls to provide assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Anticipated Completion Date: 12/31/23

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 28689 2022-003
    Significant Deficiency
  • 28690 2022-004
    Significant Deficiency
  • 28691 2022-003
    Significant Deficiency
  • 28692 2022-004
    Significant Deficiency
  • 28693 2022-003
    Significant Deficiency
  • 28694 2022-004
    Significant Deficiency
  • 28695 2022-003
    Significant Deficiency
  • 28696 2022-004
    Significant Deficiency
  • 28697 2022-003
    Significant Deficiency
  • 28698 2022-004
    Significant Deficiency
  • 28700 2022-002
    Significant Deficiency
  • 28701 2022-003
    Significant Deficiency
  • 605131 2022-003
    Significant Deficiency
  • 605132 2022-004
    Significant Deficiency
  • 605133 2022-003
    Significant Deficiency
  • 605134 2022-004
    Significant Deficiency
  • 605135 2022-003
    Significant Deficiency
  • 605136 2022-004
    Significant Deficiency
  • 605137 2022-003
    Significant Deficiency
  • 605138 2022-004
    Significant Deficiency
  • 605139 2022-003
    Significant Deficiency
  • 605140 2022-004
    Significant Deficiency
  • 605141 2022-001
    Material Weakness
  • 605142 2022-002
    Significant Deficiency
  • 605143 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $226,571
14.267 Continuum of Care Program $27,568