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
Other – Preparation of Schedule of Expenditures and Federal Awards
Significant Deficiency in Internal Control Over Compliance
Criteria: Proper controls over financial reporting include the ability to prepare the schedule
of expenditures of federal awards (Schedule) and accompanying notes to the schedule.
Condition: The District does not have an internal control system designed to provide for a
complete and accurate Schedule being audited. We were requested to draft the Schedule.
Cause: Auditor assistance with preparation of the Schedule is not unusual as the Schedule
has unique and specialized requirements and preparation is only required when the District
meets a specified threshold of federal expenditures.
Effect: There is a reasonable possibility that the District would not be able to draft the
Schedule that is correct without the assistance from the auditors.
Questioned Costs: None reported.
Context: Sampling was not used.
Repeat Finding from Prior Years: No
Recommendation: While we recognize that this condition is not unusual for an organization
with limited staffing, we recommend management be aware of the financial reporting
requirements relating to the District’s Schedule and the internal controls that impact
financial reporting.
Views of Responsible Officials: Management agrees with the finding.