Finding 575368 (2021-004)

Department of Health and Human Services Federal 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 #770637498 Department of Homeland Security Federal Assistance Listing #97.036 COVID 19: Disaster Grants – Public Assistance (Presidentially Declared Disasters)(FEMA) Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance - Other 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 Health System does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards 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 Health System meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Health System would not be able to draft a Schedule that is correct without assistance of 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 Health System’s Schedule of Expenditures of Federal Awards and internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.