Answer: There is a significant issue with how payroll costs are allocated between the PRF and ERTC programs.
Trend: This misallocation could lead to ongoing compliance risks and financial inaccuracies.
List: Review payroll allocation processes, ensure proper documentation, and implement corrective measures to align with program requirements.
Finding Text
Material Weakness: Inadequate Payroll Cost Allocation Between PRF and ERTC
Corrective Action Plan
The organization will conduct a comprehensive reconciliation of all salary expenses claimed under both the Provider Relief Fund (PRF) and the Employee Retention Tax Credit (ERTC). Overlapping or potentially duplicated costs will be adjusted as needed in coordination with legal and compliance advisors.