Finding Text
Finding No. 2022-002 Management review of grant report submissions Federal Programs: COVID-19 Coronavirus State and Local Fiscal Recovery Funds, COVID-19 Provider Relief Fund CFDA No.: 21.027, 93.498 Federal Agency: U.S. Department of the Treasury, U.S. Department of Health and Human Services Federal Award Years: CFDA 21.027 ? March 3, 2022 ? December 31, 2024 CFDA 93.498 ? January 1, 2021 ? December 31, 2022 Criteria 45 CFR section 75.303 (a) states the non-federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government,? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework,? issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 45 CFR section 75.303 (b) states the non-federal entity must: Comply with Federal statutes, regulations, and the terms and conditions of the Federal awards. Recipients of provider relief funds and coronavirus state and local fiscal recovery funds must support all expenses with adequate documentation and maintain proper control documentation to substantiate that these funds were used for health care-related expenses or lost revenues attributable to coronavirus. Condition Management reviews grant reports prior to their submission to the U.S. Department of Health and Human Services or the City of Memphis, Tennessee to ensure compliance with the laws and regulations of the federal program. There was no evidence of review of the grant report submissions. Cause and Effect ROH?s controls were not designed or implemented effectively to maintain evidence of management?s review, and the issue stems from the fact the review took place verbally. This level of review results in the inability to show evidence that the review has taken place. By ROH not providing evidence of the review of the grant report submissions, the appropriate review procedures may be insufficient in evaluating ROH?s compliance with the laws and regulations of the federal program. Questioned Cost None. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of whether the audit finding is a repeat of a finding in the immediately prior audit. This is a repeat finding. Recommendation We recommend that management implement appropriate controls and processes to ensure that once the grant reports are reviewed prior to submission that the evidence of review is maintained. Management?s Response ROH will implement controls and processes to ensure grant reports are reviewed prior to submission and that evidence of review is maintained.