Finding Text
2022-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR 200.303(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 statutes, regulations, and conditions of the federal award. Within the amended letter of conditions dated August 20, 2014, for the USDA financing, annual audited financial statements are required to be submitted to USDA. In addition, the fiscal year operating budget must be submitted and approved by USDA. Condition: The fiscal year 2021 audit report was either not submitted to USDA or submitted to USDA with no retained documentation to support when the report was submitted. In addition, the FY2023 operating budget was not submitted to USDA in the period under audit. Cause: The Medical Center did not have an internal control process in place to ensure timely submission of the required reports to USDA and the Medical Center did not retain documentation to support when the fiscal year 2021 audit report was submitted to USDA. Effect: The required reports may not have been submitted to USDA. Questioned Costs: None reported. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend implementing a process to ensure timely submission of the annual audit report and operating budget and retain documentation to support when the report and budget are submitted to USDA. Views of Responsible Officials: Management agrees with the finding.