Finding Text
Department of Health and Human Services Federal Assistance Listing #93.697 COVID-19 Testing and Mitigation for Rural Health Clinics Activities Allowed or Unallowed and Allowable Costs/Cost Principles Significant Deficiency in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Medical Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition: The Medical Center?s listing of expenses claimed under the Testing and Mitigation for Rural Health Clinics program as an allowable cost had more expenses than funds received. Some of these excess funds related to a different period and would have been reported on the Schedule in a different year. This should have been caught with an effective secondary review of expenses. Cause: The Medical Center did not have an internal control process in place to ensure the review and approval of the expenses claimed under the federal program that was detailed enough to catch certain errors. Effect: Without an effective secondary review and approval, the allowable expenses might not be accurately calculated. Questioned Costs: None noted. Context: A nonstatistical sample of 65 ($152,804) from a population of 482 items ($602,846) were tested for activities allowed or unallowed and allowable costs/cost principles. Repeat Finding from Prior Years: No Recommendation: We recommend the Medical Center implement a control process which includes a secondary review and approval of the detail final expenditure listing used to claim the allowable costs under the federal program. Views of Responsible Officials: Management agrees with the finding.