Finding Text
U.S. Department of Agriculture Federal Financial Assistance Listing #10.766, Grant #02-001-860171900 Community Facilities Loan and Grants Cluster Period of Performance Significant Deficiency in Internal Control Over Compliance 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: Included in the population of the Hospital?s program expenditures included amounts prior to the period of performance. Cause: This deficiency is due to including all project costs in the listing compared to specifically identifying amounts that are federal government related. Effect: There is a potential that expenses claimed under the major federal program are not during the period of performance. Questioned Costs: The Hospital paid for certain costs prior to the start of the program. Ultimately, it was determined that the expenditures were not paid with federal funds. Context: Sampling was first utilized to identify and accumulate the errors. Subsequently, all expenses related to periods prior to the period of performance were identified. Repeat Finding from Prior Years: No Recommendation: We recommend the Hospital develop internal controls to review and approve expenses being claimed for federal programs to ensure they are within the period of performance as established by the federal agency. Views of Responsible Officials: Management agrees with the finding.