Finding 2023-001 – Allowable Activities and Costs of Provider Relief Fund
Significant Deficiency in Internal Control over Compliance
Program: COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution
Federal Assistance Listing Number: 93.498
Federal Grantor: U.S. Department of Health and Human Services
Pass-Through Entity: None
Criteria: Per 2 CFR 200.430(i), personnel costs charged to federal grants are required to be supported by documentation including time records. Per 2 CFR 200.303, a non-federal entity must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and terms and conditions of the Federal award.
Condition: Our audit procedures over the calculation of COVID patient days used to allocate the payroll cost to the PRF/ARP federal program disclosed the amounts were not properly calculated.
Cause: The Medical Center has controls in place to review the calculation; however, the control did not operate to identify an error in the calculation of COVID patient days.
Effect: The error in the calculation resulted in underreporting payroll costs allowed to be charged to PRF/ARP in the amount of $566,272.
Questioned Costs: None
Perspective: The error in the calculation resulted in underreporting payroll costs allowed to be charged to PRF/ARP in the amount of $566,272.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the Medical Center implement additional internal controls over compliance in order to properly identify any errors in calculation.
Management’s Action Plan: The Medical Center will implement additional internal controls over compliance. Such controls will include verification of all calculations used by two parties, the Director of Finance and CFO as well as signoff on calculations.
Name of Person Responsible for the Plan: Mallory Ginn, CFO
Anticipated Completion Date of the Plan: 7/31/2024