Finding 50167 (2022-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-27

AI Summary

  • Core Issue: Insufficient documentation of internal controls for reviewing monthly financial reports submitted to the Ohio Department of Health.
  • Impacted Requirements: Non-compliance with Section 200.303 of the Uniform Guidance regarding effective internal control over federal awards.
  • Recommended Follow-Up: Implement a review checklist and sign-off process to ensure proper documentation of control procedures for all submitted reports.

Finding Text

Finding 2022-003 ? Reporting Identification of the federal program: Federal Agencies: U.S. Department of Health and Human Services Pass-Through Entities: Ohio Department of Health Assistance Listing No: 93.354, Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response Award Periods: 2022 Criteria or specific requirement (including statutory, regulatory or other citation): Section 200.303 of the Uniform Guidance states the following regarding internal control: ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Condition: Lack of sufficient internal controls documentation evidencing management?s review and approval of the amounts submitted on the monthly financial report required by the Ohio Department of Health (ODH). Cause: Internal controls over the review of the monthly financial report were not documented sufficiently to evidence there were no errors in the reporting of financial data. Effect or potential effect: Reports submitted to ODH may contain errors and not be supported by the books and records of Akron Children?s. Questioned costs: None. Context: Akron Children?s submitted seven monthly financial reports to the ODH in 2022. Management did not retain sufficient evidence supporting the review and approval of the financial reports prior to submission to ODH. Identification as a repeat finding, if applicable: The finding is not a repeat finding from the prior year. Recommendation: When executing the established controls over the review and approval of the monthly financial reports, management should document and retain evidence of the control procedures performed for all reports submitted. Views of responsible officials: Akron Children?s will implement a review checklist and sign-off process to document controls for the review of the monthly financial reports submitted to the granting agency.

Corrective Action Plan

Akron Children?s will implement a review checklist and sign-off process to document controls for the review of the monthly financial reports submitted to the granting agency.

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 50165 2022-001
    Material Weakness
  • 50166 2022-002
    Material Weakness
  • 626607 2022-001
    Material Weakness
  • 626608 2022-002
    Material Weakness
  • 626609 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3.99M
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $1.09M
16.575 Crime Victim Assistance $236,397
93.213 Research and Training in Complementary and Integrative Health $179,300
93.991 Preventative Health and Health Services Block Grant $131,670
93.395 Cancer Treatment Research $58,697
93.558 Temporary Assistance for Needy Families $53,354
93.590 Community-Based Child Abuse Prevention Grants $36,553
20.616 National Priority Safety Programs $26,376
93.361 Nursing Research $25,504
93.110 Maternal and Child Health Federal Consolidated Programs $23,064
93.080 Blood Disorder Program: Prevention, Surveillance and Research $20,115
93.889 National Bioterrorism Hospital Preparedness Program $17,537
93.732 Mental and Behavioral Health Education and Training Grants $15,204
93.778 Medical Assistance Program $13,511
93.837 Cardiovascular Diseases Research $10,920
93.855 Allergy and Infectious Diseases Research $10,115
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $9,165
93.839 Blood Diseases and Resources Research $7,513
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $6,485
93.994 Maternal and Child Health Services Block Grant to the States $5,846
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $5,558
93.867 Vision Research $4,814
93.838 Lung Diseases Research $3,784
93.360 Biomedical Advanced Research and Development Authority (barda), Biodefense Medical Countermeasure Development $2,653
93.859 Biomedical Research and Research Training $787
93.865 Child Health and Human Development Extramural Research $218