Finding 616429 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-09-27
Audit: 45797
Organization: Lifespace Communities, Inc. (IA)

AI Summary

  • Core Issue: Internal controls over compliance for the Provider Relief Fund were ineffective, leading to questioned costs of $2,240.
  • Impacted Requirements: Funds must only cover health care expenses or lost revenues directly related to coronavirus, as per the CARES Act.
  • Recommended Follow-Up: Management should review all expenditures to confirm they meet allowable cost criteria.

Finding Text

2022-003 Federal agency: U.S Department of Health and Human Services Federal program title: Provider Relief Fund Assistance Living Number: 93.498 Type of Finding: ? Significant Deficiency in Internal Control over Compliance and 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 allowable costs were not effective. Questioned costs: $2,240 Context: During the audit, 1 of the 60 cash disbursements selected for reporting period 3 was not an allowable costs for targeted disbursements related to infection control. Cause: Management Oversight Effect: The Organization?s internal controls around compliance were not effective. Repeat Finding: N/A Recommendation: We recommend that management review all expenditures to ensure they are allowable costs. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting Significant Deficiency

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
  • 616428 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $1.26M