Finding 618482 (2022-003)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-09-24
Audit: 41903
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Health Center lacks a robust internal control system for preparing the schedule of expenditures of federal awards.
  • Impacted Requirements: Proper controls are needed to ensure the schedule is complete and accurate, which is crucial for compliance.
  • Recommended Follow-Up: Management should enhance awareness of financial reporting requirements and implement a review process for the schedule before submission.

Finding Text

Department of Education Federal Financial Assistance Listing #84.181 Special Education-Grants for Infants and Families Department of Health and Human Services Federal Financial Assistance Listing #93.461 HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Department of Homeland Security ? Federal Emergency Management Agency Federal Financial Assistance Listing #97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance Criteria: Proper Controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The Health Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Health Center meets a specified threshold of federal expenditures. Effect: There is a possibility that the schedule may not include all federal programs or contain misstatements is prepared internally. Questioned Costs: None reported Context: Sampling was not used Repeat Finding from Prior Years: No Recommendation: While we recognize that this condition is not unusual, we recommend management be aware of the financial reporting requirements relating to the Health Center?s schedule and the internal controls that impact financial reporting. This would also include a separate review and approval of the schedule from the individual that prepares it. Views of Responsible Officials: Management agrees with the finding.

Categories

Reporting Cash Management Significant Deficiency

Other Findings in this Audit

  • 42038 2022-004
    Significant Deficiency
  • 42039 2022-003
    Significant Deficiency
  • 42040 2022-003
    Significant Deficiency
  • 42041 2022-003
    Significant Deficiency
  • 618480 2022-004
    Significant Deficiency
  • 618481 2022-003
    Significant Deficiency
  • 618483 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.76M
93.461 Hrsa Covid-19 Claims Reimbursement for the Uninsured Program and the Covid-19 Coverage Assistance Fund $679,864
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $635,737
84.181 Special Education-Grants for Infants and Families $107,881