Finding 579573 (2023-002)

Department of Health and Human Services Federal Assistance Listing #93.498 COVID‐19 Provider Relief Fund and American Rescue Plan Applicable Federal Award Number and Year – Period 4 TIN #426037649 Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Medical Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition: The Medical Center did not exclude the prior audit’s questioned costs from the calculation of lost revenue. Cause: The Medical Center did not have an internal control process in place to ensure the lost revenue calculation reported under the federal program submitted to the Department of Health and Human Services for Period 4 properly excluded the prior audit’s questioned costs from the lost revenue reported. Effect: Without excluding the prior audit’s questioned costs from the lost revenue calculation, the HHS Period 4 Special Report submitted was not accurately completed. Questioned Costs: There were no questioned costs related to the lost revenue calculation, as no lost revenue was claimed to cover funds received. Context: Key line items were tested on the Period 4 Department of Health and Human Services Special Report. Repeat Finding from Prior Years: Yes, Finding #2021‐003 Recommendation: We recommend the Medical Center implement a control process which includes verifying that the lost revenue calculation reported properly includes and excludes all relevant information. Views of Responsible Officials: Management agrees with the finding.