Finding Text
United States Department of Agriculture
Federal Financial Assistance Listing #10.766
Communities Facilities Loans and Grants
Preparation of the Schedule of Expenditures of Federal Awards
Material Weakness in Internal Control over Compliance
Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards (the schedule) and the accompanying notes to the schedule.
Condition: The Hospital does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. As auditors, we were requested to assist with the preparation of the schedule.
Cause: The Hospital has limited staff and auditor assistance with the preparation of the schedule is not unusual in an organization the size of the Hospital. Management has elected to have the schedule and notes to the schedule prepared by the external audit firm as part of the audit.
Effect: There is a reasonable possibility that the Hospital would not be able to draft a complete and accurate schedule without the assistance of the auditors.
Questioned Costs: None reported.
Context: Sampling was not used.
Repeat Finding from Prior Year: Yes, prior year finding 2023‐003.
Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Hospital is aware of this condition for financial reporting requirements relating to the Hospital’s schedule and the internal controls that impact financial reporting.
Views of Responsible Officials: Management agrees with the finding.