Finding 610511 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-07-15
Audit: 36625
Organization: Bath Community Hospital (VA)

AI Summary

  • Core Issue: Payroll action forms were either outdated or missing, leading to a lack of support for employee pay rates charged to the program.
  • Impacted Requirements: Compliance controls must ensure that all employee time is backed by updated internal rate forms.
  • Recommended Follow-Up: Maintain proper documentation for payroll rates and enhance review processes before recording employee time to federal programs.

Finding Text

2022-01: Controls Over Payroll Action Forms ? Provider Relief Funds ? AL# 93.498 (Significant Deficiency in Controls Over Compliance) Condition: During our review of payroll expenses charged to the program, we noted payroll action forms were either not updated or missing entirely Criteria: Controls must be in place to ensure employee time charged to the program is supported by internal rate forms. Cause: Payroll action forms were out of date or missing and thus did not support the rate charged to the program. Effect: There was no audit trail to support approval of pay rates charged to the program. Questioned Cost Amount: Not applicable. Perspective Information: Four items out of 25 tested. Context: Controls were not implemented to ensure payroll action forms were properly used and reviewed prior to recording employee time to the program. Recommendation: We recommend that payroll action forms or other documentation be maintained to support payroll rates charged to federal programs. Views of Responsible Officials and Planned Corrective Action: Management was receptive of the finding and will continue to have heighted scrutiny when using Federal funds.

Categories

Significant Deficiency

Other Findings in this Audit

  • 34069 2022-001
    Significant Deficiency
  • 34070 2022-002
    Significant Deficiency
  • 610512 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $536,716
93.697 Covid-19 Testing for Rural Health Clinics $300,000
93.301 Small Rural Hospital Improvement Grant Program $69,100