Finding Text
Department of Health and Human Services
Federal Assistance Listing #93.498
COVID-19 Provider Relief Fund and American Rescue Plan
Applicable Federal Award Number and Year – Period 4 TIN #203367397, Period 4 TIN #411668347, Period 4 TIN #411879639, Period 4 TIN #411799268, Period 4 TIN #200100365, Period 4 TIN #411810369, Period 4 TIN #463626109, Period 4 TIN #205617275, Period 4 TIN #202581924, Period 4 TIN #411843283, Period 4 TIN #237625632, Period 4 TIN #510487275, Period 4 #411598442, and Period 5 TIN #810910949.
Preparation of Schedule of Expenditures of Federal Awards
Material Weakness in Internal Control Over Compliance
Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule.
Condition: St. Francis does not have an internal control system to provide for a complete and accurate Schedule being audited. As auditors, we assisted 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 St. Francis meets a specified threshold of federal expenditures.
Effect: There is a reasonable possibility that St. Francis would not be able to draft the Schedule that is correct without the assistance of the auditors.
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 St. Francis’ Schedule and the internal controls that impact financial reporting.
Views of Responsible Officials: Management agrees with the finding.