Finding Text
Finding 2023‐001: Significant Deficiency, Internal Control Over Compliance
Federal Agency: U.S. Department of Health and Human Services
Assistance Listing Number: 93.498 – COVID‐19 Provider Relief Fund (PRF) and American
Rescue Plan (ARP) Rural Distribution
Award Year: 2021
Federal Award Identification: PRF 20210001
Pass‐Through Entity: N/A
Criteria: Per 2 CFR 200.303 and 2 CFR 200.430(i), a non‐federal entity
must establish and maintain effective internal control over the
Federal award that provides reasonable assurance that the
non‐Federal entity is managing the Federal award in
compliance with Federal statutes, regulations, and terms and
conditions of the Federal award and establishes the standard
for documentation of personnel expenses.
Condition: Payroll expenses are an allowed expense according to the
guidance and FAQs generated by HRSA. The Medical Center
should have controls in place whereby all expenses are
reviewed prior to submission to ensure the expense is for the
proper purpose.
Cause: There was no policy implemented to require the documented
approval of a corrected time card.
Effect: For one of twenty‐five payroll expenses selected, there was no
approval of a corrected time card prior to the payroll being
submitted.
Questioned Costs: $‐0‐
Perspective: The payroll expense was an allowable costs under the
guidance issue by HHS. This finding does not generate any
questioned costs or unallowable costs being used in the PRF
submission.
Recommendation: We recommend the Medical Center implement a process
whereby all timesheets (original and corrected) have to be
approved by a supervisor prior to payroll being generated and
that approval is documented and maintained.
Views of Responsible
Officials and Planned
Corrective Action: Management concurs with auditors’ finding and
recommendation.
Management’s Response: See attached corrective action plan.