Finding Text
2022-004 Department of Health and Human Services Federal Financial Assistance Listing #93.697 COVID-19 Testing and Mitigation for Rural Health Clinics Equipment and Real Property Management Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Facility is managing the federal award in compliance with federal statutes, regulations and terms and conditions of the federal award. The non-Federal entity must conform with equipment and real property management procedures identified in 2 CFR 200.313 (c) through (e). Condition: Federal-funded equipment and real property is not distinguished separately from non-federal-funded equipment and real property within the Facility?s fixed asset listing. Cause: The Facility has not implemented controls over equipment and real property management to comply with federal requirements. Effect: Without established internal controls over equipment and real property management, there is an increased risk that equipment and real property could be misappropriated or the federal agency would not be notified or reimbursed if the federal funded equipment and real property was disposed. Questioned Costs: None reported. Context: A nonstatistical sample of 3 ($52,061) from a population of 13 capitalized assets ($88,913) were tested. Repeat Finding from Prior Years: No Recommendation: We recommend the Facility implement control processes to conform with the Uniform Guidance equipment and real property management requirements noted above. Views of Responsible Officials: Management agrees with the finding.