Finding Text
2023-001 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 4 TIN #463364672, Period 4 TIN #410721640, Period 4 TIN #450275011, and Period 5 TIN #272608086
Department of Agriculture
Federal Financial Assistance Listing #10.766
Community Facilities Loans and Grants Cluster
Preparation of Consolidated Schedule of Expenditures of Federal Awards
Significant Deficiency in Internal Control over Compliance - Other
Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule.
Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited.
Cause: Auditor assistance with the preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Organization meets a specified threshold of federal expenditures.
Effect: There is a reasonable possibility that the Organization would not be able to draft a Schedule that is correct without the assistance of the auditors.
Questioned Costs: None reported.
Context: Sampling was not used.
Repeat Finding from Prior Years: Yes, Finding 2022-001.
Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization’s consolidated schedule of expenditures of federal awards and implement internal controls that consist of a preparer and reviewer.
Views of Responsible Officials: Management agrees with the finding.