Finding Text
Identifying Number: 2022-006 Information on the Federal Program: Federal Assistance Listing #93.498, Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution. Criteria or Specific Requirement: Under Uniform Guidance, effective control and accountability must be maintained for expenses used to prevent, prepare for, and respond to COVID-19. Grantee must adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. Grantee must also have systems in place that provide reasonable assurance that the information is accurate, allowable and compliant with the terms and conditions of the agreement. 2 CFR 200.303. Condition: The Organization does not have adequate controls to provide reasonable assurance that expenditures reported as qualifying grant expenditures are allowable and compliant with the terms and conditions of the agreements. Cause: Grant agreements are reviewed for allowable and unallowable costs and for period of availability. Chief Financial Officer reviews and approves the expenditure schedules before reports are submitted. However, the review process is not consistently documented, and therefore, controls are not operating effectively. Questioned Costs: None. Context: There was no documented review on any of the expenditure submissions, therefore, this is a systemic problem. All submissions were reviewed and therefore, population was statistically valid. Repeat Finding: No. Recommendation: A formal process should be implemented and placed in service to ensure the review process of the reported grant expenditures is documented. Views of Responsible Officials: See Corrective Action Plan.