Finding 404907 (2023-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-07-01

AI Summary

  • Core Issue: There was a material weakness in internal controls over compliance, leading to incorrect reporting of lost revenue in the PRF Report.
  • Impacted Requirements: Auditors must test special reporting for fiscal years ending on or after June 30, 2021, which was not met due to underreported actual revenue.
  • Recommended Follow-Up: Enhance the review process for PRF reporting to prevent future errors in grant submissions.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: COVID-19 Provider Relief Fund (PRF) Assistance Listing Number: 93.498 Award Period: Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: Auditors are expected to test this special reporting for fiscal years ending on or after June 30, 2021. Condition: The 2019 actual revenue was underreported on the required PRF Report, therefore total lost revenue was overreported in the PRF Report. Context: The auditor agreed the quarterly data utilized in the PRF Report to audited financial statement totals, noting quarter 3 of 2019 was incorrectly reported. Cause: Incorrect data for 03 of 2019 was utilized in preparation of the report. Effect: Use of incorrect data resulted in overreporting of lost revenues. However, Saint Joseph's Living Center, Inc. had an excess of unused lost revenues to properly apply PRF funding to. Therefore, the effect is solely related to the reporting required. Recommendation: We recommend Saint Joseph's Living Center, Inc. enhance its review of PRF reporting information in any applicable future grant reporting submissions in order to avoid errors going forward. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

U.S. Department of Health and Human Services 2023-001 COVID-19 Provider Relief Fund (PRF) – Assistance Listing No. 93.498 Recommendation: We recommend Saint Joseph’s Living Center, Inc. enhance its review of PRF reporting information in any applicable future grant reporting submissions in order to avoid errors going forward. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We plan to implement an enhanced process for review of reporting requirements for future grant reporting submissions. Name(s) of the contact person(s) responsible for corrective action: Ginny Person, Administrator Planned completion date for corrective action plan: July 2024 If the U.S. Department of Health and Human Services has questions regarding this plan, please call Ginny Person at 860-456-1107.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 981349 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $829,292