Finding 3132 (2023-003)

Department of Health and Human Services Federal Assistance Listing #93.498 COVID‐19 Provider Relief Fund and American Rescue Plan Applicable Federal Award Number and Year – Period 4 TIN #426037649 Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Reporting 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 federal awards that provides reasonable assurance that the Medical Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition: The Medical Center included expenses in excess of the Executive Level II limit in the detail of eligible expenditures. Cause: The Medical Center did not have an internal control process in place to ensure all employees with salaries over the Executive Level II limit had their wages reimbursed by the program limited to the Executive Level II limit. Effect: Without internal control process in place to ensure all employees with salaries over the Executive Level II limit had their wages reimbursed by the program limited to the Executive Level II limit, the allowable expenses was not accurately calculated. Questioned Costs: None over the $25,000 limit. Context: A nonstatistical sample of 65 ($20,973) from a population exceeding 250 items ($2,556,270) were tested for activities allowed or unallowed and allowable costs/cost principles. Repeat Finding from Prior Years: Yes, Finding #2021‐003 Recommendation: We recommend the Medical Center implement a control process which ensures that all employees with salaries over the Executive Level II limit have their wages reimbursed by the program limited to the Executive Level II limit. Views of Responsible Officials: Management agrees with the finding.