Finding 39985 (2022-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
$1
Year
2022
Accepted
2023-09-27
Audit: 45797
Organization: Lifespace Communities, Inc. (IA)

AI Summary

  • Core Issue: The organization has a material weakness in internal controls over compliance related to the Provider Relief Fund.
  • Impacted Requirements: Funds must be used for health care expenses or lost revenues due to coronavirus, as per the CARES Act.
  • Recommended Follow-Up: Management should review all expenditures for direct support to ensure compliance and accuracy.

Finding Text

2022-001 Federal agency: U.S Department of Health and Human Services Federal program title: Provider Relief Fund Assistance Living Number: 93.498 Type of Finding: ? Material Weakness in Internal Control over Compliance Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: The Organization?s internal controls over compliance related to reporting were not effective. Questioned costs: $49,894 Context: During the audit, it was determined that the Organization provided support for recorded expenses did not reconcile to the amount reported. Cause: Management Oversight Effect: The Organization?s internal controls around compliance were not effective. Repeat Finding: 2021-001 Recommendation: We recommend that management review all expenditures for direct support. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

2022-001 Provider Relief Funds ? Assistance Listing No. 93.498 Recommendation: We recommend that management review all expenditures for direct support. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review and update their policies and procedures to ensure the accuracy of reporting. Name of the contact person responsible for corrective action: Nick Harshfield, CFO Planned completion date for corrective action plan: December 2023

Categories

Questioned Costs Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 39986 2022-002
    Material Weakness Repeat
  • 39987 2022-003
    Significant Deficiency
  • 616427 2022-001
    Material Weakness Repeat
  • 616428 2022-002
    Material Weakness Repeat
  • 616429 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $1.26M