Finding 33633 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-06-08
Audit: 37500
Organization: Unity Limited Partnership (WI)
Auditor: Wipfli LLP

AI Summary

  • Core Issue: Unity's internal controls over payroll compliance were ineffective, leading to inaccurate reporting of $17,355 in payroll expenses under federal assistance programs.
  • Impacted Requirements: Compliance with allowable costs and cost principles as mandated by the Provider Relief Fund and ARP Rural Distribution guidelines.
  • Recommended Follow-Up: Management should review all payroll expenditures for accuracy and correct any errors to ensure compliance with federal criteria.

Finding Text

Finding 2022-001 Program Name/Assistance Listing Title: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Type of Finding: Significant Deficiency Compliance Requirement: Allowable Costs, Cost Principles Condition: Unity?s internal controls over compliance related to payroll were not effective. 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 the ARP Rural Distribution were provided under the American Rescue Plan Act (Pub. L. No. 117- 2) and are to be used to prevent, prepare for, and respond to coronavirus. The funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Context: During the audit, it was determined that 2 payroll items totaling $17,355 were not recorded accurately under the Provider Relief Fund and ARP Rural Distribution because the calculation of the amount of payroll applicable to the program contained an error. Cause: Management oversight. Effect: Unity?s internal controls around compliance were not effective. Recommendation: We recommend that management review all expenditures for accuracy under the criteria provided by the U.S. Department of Health and Human Services to ensure all errors are identified and corrected. View of Responsible Management will review calculations and support for all payroll expenditures to Officials: ensure accuracy in future reporting. Management notes there was $46,841 of unreimbursed expenses. As a result, the lost revenue and allowable COVID related expenses exceeded funding retained after consideration of the payroll items noted above.

Corrective Action Plan

Finding # 2022-001 Response We will review calculations and support for al payroll expenditures to ensure accuracy in future reporting. Management notes there was $46,841 of unreimbursed expenses. As a result, the lost revenue and allowable COVID related expenses exceeded funding retained after consideration of the payroll items noted in the finding. Responsible Party Jessica Grimm Estimated Completion 12/31/2023

Categories

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

Other Findings in this Audit

  • 33634 2022-001
    Significant Deficiency
  • 610075 2022-001
    Significant Deficiency
  • 610076 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Covid-19 Provider Relief Fund $572,887
93.498 Provider Relief Fund - American Rescue Plan - Rural Distribution $421,890