Finding Text
Department of Health and Human Services
Federal Assistance Listing #93.498
COVID‐19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Applicable Federal Award Number and Year – Period 4 and Period 5 TIN #450231181
Reporting
Significant Deficiency in Internal Control Over Compliance and Noncompliance
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 The Medical Center improperly reported expenses in the Period 5 report submission due
to an amount improperly carried forward from a previous report.
Cause The Medical Center did not have an adequate internal control policy in place to ensure
that expenses were properly reported in future submissions in accordance with the
terms and conditions of the grant.
Effect While the error provided a difference between reported expenses and supportable
expenses, the Medical Center had excess lost revenues available to be applied to future
periods. This error also indicated there is a lack of policies governing the review and
approval of the expense reporting to the HHS special report.
Questioned Costs None reported. Reported expenses were overstated by $66,659 on the Period 5 report,
however, the Medical Center had $94,302 of excess lost revenue to offset this error.
Context/Sampling: All key line items from the Period 4 and Period 5 reports were tested.
Repeat Finding from
Prior Years: No
Recommendation We recommend that the Medical Center enhance internal control policies to ensure all
reports are reviewed and approved to ensure the proper reporting and meet the
requirements of the federal program.
Views of Responsible
Officials Management agrees with the finding.