Finding Text
Department of Health and Human Services
Federal Financial Assistance Listing #93.498
COVID‐19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution
Applicable Federal Award Number and Year – Period 1 and Period 2 TIN #201209404, Period 1
and Period 2 TIN #208729268, Period 2 TIN #262181659, Period 1 and Period 2 TIN
#273274611, Period 2 TIN #800015864
Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Material Weakness 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: During our testing, there was no documentation for a portion of the sample selected.
Cause: The Organization did not have an internal control process in place to ensure that
allowable expenses were all properly supported.
Effect: The lack of adequate policies governing expenditure support 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: A nonstatistical sample of 65 expenditures were selected for testing, which accounted
for $140,360 of $1,292,789 direct program expenditures. Of these 65 items, seven were
unsupported.
Repeat Finding from Prior Years: No
Recommendation: We recommend that the Organization enhance internal control policies to
ensure all expenditures are supported to ensure that all payments are necessary, correct, meet
the requirements of the federal program including an assessment of the period of availability,
and are properly recorded in the reports required to be submitted to the federal agency.
Views of Responsible Officials: Management agrees with the finding.