Finding 42039 (2022-003)

Department of Education Federal Financial Assistance Listing #84.181 Special Education-Grants for Infants and Families Department of Health and Human Services Federal Financial Assistance Listing #93.461 HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Department of Homeland Security ? Federal Emergency Management Agency Federal Financial Assistance Listing #97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance Criteria: Proper Controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The Health Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards 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 the Health Center meets a specified threshold of federal expenditures. Effect: There is a possibility that the schedule may not include all federal programs or contain misstatements is prepared internally. Questioned Costs: None reported Context: Sampling was not used Repeat Finding from Prior Years: No Recommendation: While we recognize that this condition is not unusual, we recommend management be aware of the financial reporting requirements relating to the Health Center?s schedule and the internal controls that impact financial reporting. This would also include a separate review and approval of the schedule from the individual that prepares it. Views of Responsible Officials: Management agrees with the finding.