Finding 528954 (2021-004)

Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID‐19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 1 TIN# 910843135 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: The District must establish and maintain effective internal control over federal awards that provides reasonable assurance that the District is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition: The amounts reported for lost revenue did not agree to the supporting documentation provided. Cause: The District did not have an internal control process in place to ensure the accuracy of the reporting key line items. Effect: There was no effect on the amount of lost revenue applied against the funding received in the current period, however there were errors in the key line items reported. Lost revenue for the reporting period was $7,462,254, which exceeds the amount claimed of $5,874,597. Questioned Costs: None reported. Context: Key line items were tested on the Period 1 Department of Health and Human Services special report. Repeat Finding from Prior Years: No Recommendation: We recommend that management review the calculation for lost revenues and ensure the amounts used for actual revenues agrees to the amounts presented in the financial statements. Views of Responsible Officials: Management agrees with the finding.