Finding 39964 (2022-004)

2022-004 Department of Agriculture Federal Assistance Listing #10.766 Community Facilities Loans and Grants 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 2 and Period 3 TIN #205330283 Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance ? Other Criteria-Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition- The Care Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. The Care Center requested Eide Bailly LLP to draft the Schedule. 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 Care Center meets a specified threshold of federal expenditures. Effect-There is a reasonable possibility that the Care Center would not be able to draft the Schedule and the accompanying notes to the Schedule that is correct 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 be aware of the financial reporting requirements relating to the Care Center?s schedule of expenditures of federal awards and the internal controls that impact financial reporting. View of Responsible Officials-Management agrees with the finding.