Finding 610512 (2022-002)

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

AI Summary

  • Core Issue: Inadequate controls over payroll timecard reviews led to unapproved charges to the Provider Relief Funds.
  • Impacted Requirements: Compliance controls must ensure all employee timecards are properly reviewed and approved before payroll expenses are charged.
  • Recommended Follow-Up: Ensure all timecards are approved and maintain physical documentation if electronic records are not available.

Finding Text

2022-02: Controls Over Payroll Review ? 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 that there were not adequate controls in place to review timecards prior to charging the payroll expense to the program. Criteria: Controls must be in place to ensure employee time cards are approved to ensure time charged to the program is appropriate. Cause: During the transition between payroll systems, there was a lack of reviews to ensure proper amounts were being charged to the program. Effect: Payroll timecards were not reviewed or approved for the first two payrolls after the transition to the new software. Questioned Cost Amount: Not applicable. Perspective Information: Three items out of 25 tested. Context: The Hospital was transitioning to a new payroll system. During that time, they did not maintain adequate controls. Recommendation: We recommend that all timecards are approved. Additionally, if the payroll processor does not keep such information electronically, we recommend maintaining physical documents as support. 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 Internal Control / Segregation of Duties

Other Findings in this Audit

  • 34069 2022-001
    Significant Deficiency
  • 34070 2022-002
    Significant Deficiency
  • 610511 2022-001
    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