Finding Text
2022‐003
U.S Department of Agriculture
Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster
Department of Health and Human Services Federal Financial Assistance Listing #93.498
COVID‐19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable
Federal Award Number and Year – Period 4 – TIN #410711612
Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in
Internal Control over Compliance ‐ Other
Criteria – Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires PioneerCare to
prepare a consolidated schedule of expenditures of federal awards (Schedule). 2 CFR 200.303(a)
establishes that the auditee must establish and maintain effective internal control over the
federal award in compliance with federal statutes, regulations, and conditions of the federal
award.
Condition – PioneerCare does not have an internal control system designed to allow for a complete
and accurate Schedule being audited. We were requested to draft 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 PioneerCare meets a
specified threshold of federal expenditures. Accordingly, management has made the determination to
have the auditor assist with the preparation of the Schedule.
Effect – There is a reasonable possibility PioneerCare would not be able to draft a Schedule that
is correct without assistance of the auditors.
Questioned Costs – None reported. Context – Sampling was not used. Repeat Finding from Prior Year ‐ Yes
Recommendation ‐ While we recognize that this condition is not unusual for an organization with
limited staffing, we recommend that management be aware of the reporting requirements relating to
PioneerCare’s consolidated schedule of expenditures of federal awards and internal controls that
impact reporting.
Views of Responsible Officials ‐ Management agrees with the finding.