Finding 42879 (2022-002)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 50199
Auditor: Galindez LLC

AI Summary

  • Core Issue: Discrepancies were found between claimed payroll expenses and the actual pay rates documented in personnel files for 10 out of 40 sampled employees.
  • Impacted Requirements: This affects compliance with federal award regulations regarding accurate reporting of payroll expenses.
  • Recommended Follow-up: Review and correct the payroll documentation for the affected employees to ensure alignment with personnel records.

Finding Text

Condition - During our testing of payroll related expenses charged to the federal award, we identified instances in which the supporting evidence provided by the Hospital as evidence of the claimed payroll expenses included 10 instances that did not agreed to the underlying related source of evidence. Context - Out of 1,369 employees included in the report, we selected 40 employees, or 3% of the total population, and noted that for 10 employees?, management claimed the related employee expenses based on a pay rate different to the pay rate documented in the employees? personnel file.

Corrective Action Plan

We currently collaborate with an external resource (experienced accountant, finance, and Certified Internal Control Auditor) who provides us with support in the Hospital's accounting and financial area. As part of his tasks, he will review and collaborate in preparing accurate reports of the funds received. It will also be aware of compliance with federal programs. We will establish an internal control level in the review and approvements before submitting the subsequent reports.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 42880 2022-001
    Significant Deficiency
  • 619321 2022-002
    Significant Deficiency
  • 619322 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $1.61M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.51M
21.019 Coronavirus Relief Fund $508,632