Finding Text
Finding 2022-002 Material Weakness: Schedule of Expenditures of Federal Awards ? Control Finding ALN 93.498 ? Provider Relief Fund (PRF) and American Rescue Plan Rural Distribution Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: None, direct awards Criteria or Specific Requirement: 2 CFR section 200.510 states that the auditee must prepare the schedule of expenditures of federal awards (SEFA or ?Schedule?) and the schedule must provide total federal awards expended for each individual ALN and amounts passed through to subrecipients. Condition: During the audit, the following corrections were made to the SEFA: ? PRF amounts totaling $903,155 received during the period of July 1, 2020 through June 30, 2021 were added to the SEFA, in accordance with guidance set forth by the U.S. Department of Health and Human Services. ? Federal expenditures totaling $147,262 were classified under the wrong ALN. The reclassification of these expenditures resulted in a change to the major program determination. ? Federal expenditures were adjusted by $100,152 to accrue reimbursable expenditures related to fiscal year 2022. ? The Schedule provided did not identify amounts passed through to subrecipients. Cause: Management does not have an internal control process in place to ensure an accurate Schedule. Effect: The possibility exists that errors within the Schedule could become material to the financial statements or result in an incorrect major program determination. Questioned Costs: Not applicable. Context: A sufficient review of the Schedule did not occur so errors were not detected. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management assign the review of the SEFA to an individual that is knowledgeable about federal grants. In addition, grant agreements should be retained in a central repository to aid in the review of the SEFA. Lastly, the Finance Office should perform a year-over-year comparison of the SEFA by ALN and make inquiries of agencies regarding significant variances. Views of Responsible Officials: Management will implement procedures to assure that all costs charged to the Provider Relief Fund are reviewed by a competent individual, and those reviews will be documented.