Finding 371407 (2023-003)

Department of Health and Human Services Medicaid Cluster Federal Assistance Listing #93.778 Medical Assistance Program Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include a system designed to prepare the consolidated schedule of expenditures of federal awards and accompanying notes to the consolidated schedule of expenditures of federal awards. Condition: The Organization does not have an internal control system designed to provide for the preparation of the consolidated schedule of expenditures of federal. As auditors, we were requested to draft the consolidated schedule of expenditures of federal awards. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a complete and accurate consolidated schedule of expenditures of federal awards without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management continually be aware of the financial reporting requirements relating to the Organization’s consolidated schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.