Finding Text
2023-003 United States Department of Agriculture
Federal Financial Assistance Listing #10.766
Communities Facilities Loans and Grants Cluster
Department of Health and Human Services
Federal Financial Assistance Listing #93.498
COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Preparation of the Schedule of Expenditures of Federal Awards
Material Weakness in Internal Control over Compliance
Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards (the schedule) and the accompanying notes to the schedule.
Condition: The Hospital does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. 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 Hospital meets a specified threshold of federal expenditures.
Effect: There is a reasonable possibility that the Hospital would not be able to draft a complete and accurate schedule.
Questioned Costs: None reported.
Context: Sampling was not used.
Repeat Finding from Prior Year: Yes, prior year finding 2022-003
Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Hospital is aware of this condition for financial reporting requirements relating to the Hospital’s schedule and the internal controls that impact financial reporting.
Views of Responsible Officials: Management agrees with the finding.