Finding 616428 (2022-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
$1
Year
2022
Accepted
2023-09-27
Audit: 45797
Organization: Lifespace Communities, Inc. (IA)

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance for the Provider Relief Fund, specifically regarding documentation support.
  • Impacted Requirements: Funds must be used for health care-related expenses or lost revenues due to coronavirus, as mandated by the CARES Act.
  • Recommended Follow-Up: Management should review all expenditures to ensure they have direct support to comply with requirements.

Finding Text

2022-002 Federal agency: U.S Department of Health and Human Services Federal program title: Provider Relief Fund Assistance Living Number: 93.498 Type of Finding: ? Material Weakness in Internal Control over Compliance Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: The Organization?s internal controls over compliance related to documentation of support were not effective. Questioned costs: $34 Context: During the audit, 1 of the 60 cash disbursements selected did not have direct support for the cost recorded on the Period 3 reporting. Cause: Management Oversight Effect: The Organization?s internal controls around compliance were not effective. Repeat Finding: 2021-002 Recommendation: We recommend that management review all expenditures for direct support. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 39985 2022-001
    Material Weakness Repeat
  • 39986 2022-002
    Material Weakness Repeat
  • 39987 2022-003
    Significant Deficiency
  • 616427 2022-001
    Material Weakness Repeat
  • 616429 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $1.26M