FAC Explorer

Finding 28700 (2022-002)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-09-27
Audit: 28806
Organization: Rs Eden (MN)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The organization lacks a formal review process for calculating lost revenue claimed under the COVID-19 Provider Relief Fund.
  • Impacted Requirements: This deficiency violates 2 CFR 200.303(a), which mandates effective internal controls over federal awards.
  • Recommended Follow-Up: Implement a control process that includes a secondary review and documented approval for lost revenue calculations.

Finding Text

2022-002 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 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Criteria: 2 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: The Organization?s calculation of lost revenue claimed under the federal program as an allowable cost was not subjected to formal review or approval by a separate individual outside of the preparer. Cause: The Organization did not have an adequate internal control policy to ensure review and approval of the lost revenue calculation claimed under the federal program was documented in accordance with guidance. Effect: The lack of adequate policies governing review and approval increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None reported. Context: The lost revenue calculation for all applicable quarters was tested. Repeat Finding from Prior Years: No Recommendation: We recommend the Organization implement a control process which includes a secondary review and documented approval of the lost revenue calculation under the federal program. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2022-002 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?s calculation of lost revenue claimed under the federal program as an allowable cost was not subjected to formal review or approval by a separate individual outside of the preparer. Responsible Individuals: Caroline Hood, President & CEO Paul Puerzer, Chief Financial Officer Corrective Action Plan: When summarizing lost revenue for submission, a secondary review of the summary spreadsheet prepared from the underlying supporting spreadsheets will be documented. Anticipated Completion Date: 12/31/23

Categories

Allowable Costs / Cost Principles Significant Deficiency

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
  • 28699 2022-001
    Material Weakness
  • 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