Finding Text
Finding No. 2022-04 - Reporting - Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There was no evidence retained that the Phase 4 report submitted on the HRSA portal in March 2023 to the Department of Health and Human Services was reviewed and approved by a separate individual outside of the preparer. Context: This finding did not impact the reporting which was made timely. Effect: Without documentation of a secondary review and approval, demonstrating internal controls over compliance is difficult. Cause: There were staffing shortages during 2022. Due to the shortages, the auditee did not have an internal control process in place to ensure review and approval of the lost revenue calculation claimed under the federal program and the report submitted to the Department of Health and Human Services for Period 4. Questioned Costs: None reported. Recommendation: We recommend that management implement a control process which includes a documented secondary review and approval. Views of Responsible Official: Management agrees with this finding. See corrective action plan.