Finding Text
2023-005 U.S. Department of Health and Human Services
Federal Assistance Listing #93.498
COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Applicable Federal Award Number and Year – Period 3 TIN #237293874, #810540517;
#371518772; #810413632; #810420653; #810247969; #810530457; #810232406; and
#810515463
Preparation of Consolidated Schedule of Expenditures of Federal Awards
Material Weakness in Internal Control over Compliance – Other
Criteria – A good system of internal accounting control contemplates an adequate
system for preparing the consolidated schedule of expenditures of federal awards
(Schedule) and accompanying notes to the Schedule.
Condition – During the course of our engagement, we noted a material program missing
from the Schedule that was not identified by management, until completing the
subsequent period audit for the nine-months ended December 31, 2023.
Cause – Management’s process for identifying all grant to be included in the Schedule
did not include sufficient procedures to address completeness of the population of
grants across all entities, which resulted in certain grants being missed, including a
major program.
Effect – This control deficiency resulted in us having to assist in the preparation of the
Schedule and would have resulted in a material misstatement to the Schedule that was
not prevented, or detected and corrected, by internal personnel in a timely manner.
This control deficiency also resulted in a reissuance of the Federal Awards Report in
accordance with the Uniform Guidance for the year ended March 31, 2023.
Questioned Costs – None reported.
Context/Sampling – Sampling was not used.
Repeat Findings from Prior Years – No.
Recommendation – We recommend that management update procedures and controls
over tracking and recording of federal programs within the Schedule.
Views of Responsible Officials – Management agrees with the finding.