Finding Text
2023-003 Department of Health and Human Services
Federal Financial Assistance Listing #93.498
COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Applicable Federal Award Number and Year – Period 4 TIN# 411392082
Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Material Weakness in Internal Control over Compliance and Noncompliance
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 the federal award that provides assurance that the entity is managing the federal award in compliance with
federal statutes, regulations, and conditions of the federal award.
Condition: There were the expenses claimed under general and administrative category that were in excess of
the amounts actually incurred under the program. Also, there was a duplication of utility expenses already
claimed for the month of November 2021.
Cause: The Medical Center claimed general and administrative costs that did not agree to supporting
documentation due to clerical errors within the final expenditure listing.
Effect: Expenditures included within the special report submitted to the Department of Health and Human
Services for Period 4 TIN# 411392082 relating to general and administrative expenses were overstated by
$53,954.
Questioned Costs: The Medical Center has additional lost revenue in Period 4 that exceeds the general and
administrative expenses. As a result, there are no questioned costs for activities allowed or unallowed and
allowable costs/cost principles. Expenses included within the special report were overstated by $53,954.
Context/Sampling: Summary level testing was performed over mortgage, utilities, and insurance. Key line items
were tested on the Period 4 Department of Health and Human Services special report.
Repeat Finding from Prior Years: No
Recommendation: We recommend implementing a control process that reviews the clerical accuracy to the
supporting detail being used to claim the allowable costs under the program.
Views of Responsible Officials: Management agrees with the finding.