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 TIN #390992883
Preparation of Schedule of Expenditures of Federal Awards
Significant Deficiency in Internal Control Over Compliance
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 Medical Center does not have an internal control system designed to provide for a complete and
accurate preparation of the Schedule. As auditors, we were requested to assist with the preparation of 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 Medical Center meets a specified threshold
of federal expenditures.
Effect: There is a reasonable possibility that the Medical Center would not be able to draft 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: Yes, finding 2021-006.
Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing,
we recommend management be aware of the financial reporting requirements relating to the Medical Center’s
Schedule and the internal controls that impact financial reporting.
Views of Responsible Officials: Management agrees with the finding.