Finding 571779 (2021-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2025-07-22

AI Summary

  • Core Issue: The District lacks effective internal controls, leading to discrepancies in reported lost revenue.
  • Impacted Requirements: Compliance with federal statutes and accurate reporting of federal awards is not ensured.
  • Recommended Follow-Up: Management should verify lost revenue calculations and implement a review process for reporting prior to submission.

Finding Text

Department of Health and Human Services Federal Assistance Listing/CFDA #93.498 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 1 TIN #870212456 Reporting Material Weakness in Internal Control Over Compliance and Noncompliance Not Considered Material 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: Amounts reported for lost revenue did not agree to the supporting documentation provided. Additionally, the District did not have internal controls in place to review and approve reporting prior to submission. Cause: The District did not have an internal control process in place to ensure the accuracy of the reporting of key line items. Additionally, there was no internal control process in place to review and approve the reporting prior to submission. Effect: Four of the eight key line items on the reporting submitted to the Department of Health and Human Services (HHS) for Period 1 contained errors. Ultimately, lost revenue report was considered potentially understated. Questioned Costs: None reported. Context: All key line items were tested on the report to HHS for Period 1. 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. Additionally, we recommend management develop a control that involves review and approval of information to be reported separate from the preparer prior to submission Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Federal Agency Name: Department of Health and Human Services Assistance Listing Number: #93.498 Program Name: Provider Relief Fund and American Rescue Plan {ARP} Rural Distribution Compliance Requirement: Reporting Finding Summary: The District did not have adequate internal controls policy in place to ensure lost revenue reported were accurate and based upon underlying. Responsible Individuals: Brian Murray, Chief Financial Officer Corrective Action Plan: GVH will review its internal controls related to lost revenue calculations to ensure the lost revenue calculations reconciles to the supporting and audited accounting records.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 571778 2021-002
    Significant Deficiency
  • 571780 2021-004
    Significant Deficiency
  • 1148220 2021-002
    Significant Deficiency
  • 1148221 2021-003
    Material Weakness
  • 1148222 2021-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $8.27M
93.301 Small Rural Hospital Improvement Grant Program $83,716
93.899 Minority Hiv/aids Fund (mhaf) $61,729