Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Title: COVID-19 Provider Relief Funds
Assistance Listing Number: 93.498
Award Period: January 1, 2021 through December 31, 2021
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
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 recipients only for health care related expenses or lost revenues that are attributable to coronavirus.
Condition: During our testing, we noted the organization had insufficient support for six disbursements and one disbursement was recorded at the incorrect dollar value. We also noted thirteen selections with no support of approval for the expenditures incurred.
Questioned costs: $9,969
Context: During our testing, it was noted that 6 of the 60 disbursements sampled could not be supported with invoices or detailed receipts, 1 of the 60 disbursements sampled was incorrect, and 13 of the 60 disbursements sampled had no support of having been approved.
Cause: The organization did not have proper controls in place to ensure proper documentation was maintained and that the expenditures were properly reviewed and approved.
Effect: Information included in the submission could be incorrect without a formal process in place.
Recommendation: We recommend the organization adopt a formal policy that ensures documentation of expenditures is maintained and that all expenditures are compared against source documentation to ensure appropriate recording. A review process should be formally documented. The review should be performed by someone other than the preparer of the information.
Views of responsible officials: There is no disagreement with the audit finding. However, management believes the questioned costs would be covered by the excess amount expenses incurred.