Finding Text
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.