Finding 619449 (2022-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-10-01
Audit: 39287
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Health Center lacks a proper internal control system for preparing the Schedule of Expenditures of Federal Awards, leading to potential inaccuracies.
  • Impacted Requirements: Compliance with financial reporting standards is compromised, as the Schedule must be complete and accurate to meet federal guidelines.
  • Recommended Follow-Up: Management should enhance awareness of financial reporting requirements and improve internal controls to ensure accurate preparation of the Schedule.

Finding Text

2022-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Department of Health and Human Services Federal Financial Assistance Listing #93.155 Rural Health Research Centers Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Health Center does not have an internal control system designed to allow for a complete and accurate Schedule. 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 reasonable possibility the Health Center would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding From Prior Years: Yes Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend that management be aware of the financial reporting requirements relating to the Health Center?s schedule of expenditures of federal awards and internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.

Categories

Reporting Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 43007 2022-003
    Material Weakness Repeat
  • 43008 2022-003
    Material Weakness Repeat
  • 43009 2022-004
    Significant Deficiency
  • 619450 2022-003
    Material Weakness Repeat
  • 619451 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $1.28M
93.155 Rural Health Research Centers $248,400
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $100,000
93.498 Provider Relief Fund $32,014
93.301 Small Rural Hospital Improvement Grant Program $10,513