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 2 TIN#4550559322
Department of Homeland Security
Federal Assistance Listing #97.036
COVID‐19 Disaster Grants – Public Assistance
Preparation of Schedule of Expenditures of Federal Awards
Material Weakness in Internal Control over Compliance ‐ Other
Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards and accompanying notes to the schedule of expenditures of federal awards.
Condition: The Clinic does not have an internal control system designed to provide for the preparation of the schedule of expenditures of federal. As auditors, we were requested to draft the schedule of expenditures of federal awards.
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 Clinic meets a specified threshold of federal expenditures.
Effect: There is a reasonable possibility that the Clinic would not be able to draft a complete and accurate schedule of expenditures of federal awards 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 continually be aware of the financial reporting requirements relating to the Clinic’s schedule of expenditures of federal awards and the internal controls that impact financial reporting.
View of Responsible Officials: Management agrees with the finding.