Finding Text
2022-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411948604 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR 200.33(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 statues, regulations, and conditions of the federal award. The Organization is required to submit an accurate report to HHS for each filing period of funds were received. Condition: The Organization erroneously reported $226,571 in expenses on the Period 4 Department of Health and Human Services special report. Cause: The Organization did not have an internal control process in place to ensure the reporting portal input fields for expenses was accurate. Effect: While the calculation error provided a difference between the lost revenues on the HHS special report and the lost revenue calculation, the Organization had excess lost revenues available to be applied. This reporting error also indicated there is a lack of policies governing the review and approval of the HHS special report. Questioned Costs: None reported. The Organization had excess lost revenues available to be applied. Context: Key line items were tested on the Period 4 Department of Health and Human Services special report. The HHS special reports included total expense errors of $226,571. The Organization had excess lost revenues from the Period 4 HHS reports that totaled $2,362,453. Repeat Finding from Prior Years: No Recommendation: We recommend that the Organization enhance internal control policies to ensure all reports to HHS are reviewed and approved prior to submission to ensure accuracy of the reports and meet the requirements of the federal program . Views of Responsible Officials: Management agrees with the finding.