Finding Text
2022-004 Department of Health and Human ServicesFederal Financial Assistance Listing/CFDA #93.498COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural DistributionApplicable Federal Award Number and Year ? Period 1 and Period 2 TIN#460242831Activities Allowed or Unallowed and Allowable Costs/Costs PrinciplesSignificant Deficiency in Internal Control Over ComplianceCriteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The Center claimed expenses based on specifically identified COVID related expenses and general and administrative expenses.Condition: The Center claimed one invoice that was duplicated on the COVID-19 capital items claimed under equipment.Cause: The Center did not have adequate internal controls to identify the duplicate invoice on the COVID-19 equipment summary.Effect: The lack of adequate internal controls over the COVID-19 equipment summary increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner and may submit expenses that are unallowed due to duplication.Questioned Costs: None reported as amount is below $25,000.Context: A nonstatistical sample of 60 expenditures were selected for testing, which accounted for $197,649 of $1,034,974 direct program expenditures. Of the 60 tested, one invoice was duplicated.Repeat Finding from Prior Years: NoRecommendation: We recommend that the Center enhance internal control policies to ensure COVID-19 equipment purchases eligible and are properly recorded in the reports required to be submitted to the federal agency.Views of Responsible Officials: Management agrees with the finding.