Finding Text
Department of Health and Human Services
Federal Assistance Listing/CFDA #93.498
COVID‐19 Provider Relief Fund and American Rescue Plan Rural Distribution
Applicable Federal Award Number and Year – Period 1 TIN #450255914
Activities Allowed or Unallowed, Allowable Costs/Costs 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. The Medical Center claimed expenses based on specifically identified COVID related expenses.
Condition: The Medical Center does not have an adequate internal control policy in place to ensure review and approval of cash disbursements claimed under the federal programs were documented and to ensure that expenses claimed in the Report were complete, accurate, and reduced by other funding sources.
Cause: The Medical Center did not have an adequate internal control policy in place to ensure review and approval of cash disbursements claimed under the federal programs were documented and to ensure that expenses claimed in the Report were complete, accurate, and reduced by other funding sources.
Effect: The lack of adequate policies governing cash disbursements and Report preparation and submission 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 32 of 156 expenditures were selected for testing.
Repeat Finding from Prior Years: Yes, 2021‐005
Recommendation: We recommend that the Medical Center enhance internal control policies to ensure all amounts reimbursed by other funding sources are adequately documented and reduced from the eligible expenditure listing and are properly recorded in the Report required to be submitted to the federal agency. We also recommend that the Medical Center enhance internal control policies to ensure that the required Report are properly reviewed prior to submission to ensure all key line items are necessary, correct, meet the requirements of the federal program, and are properly recorded in the Report required to be submitted to the federal agency.
Views of Responsible Officials: Management agrees with the finding.