Finding Text
2022-002 ? Activities Allowed or Unallowed Information on Federal Program(s) - Provider Relief Fund and American Rescue Plan Rural Distribution (ALN: 93.498) Criteria or Specific Requirement ? The activities allowed or unallowed (A) compliance requirements of the program states that funds shall be available for building or construction of temporary structures, leasing of properties, medical supplies and equipment, including personal protective equipment and testing. Condition ? During our testing of the controls over and compliance with activities allowed or unallowed (A) by the program, we noted three instances of documentation that did not support the allowablility of the activity expensed to the program. Cause ? Controls as designed failed due to inadequate education of the respective control owner over proper execution of the control activity. Effect or Potential Effect ? Inappropriate execution of controls can result in expenses charged to the program that are for unallowable activities. Questioned Costs ? None. Context ? For three of 60 expenses selected for tests of controls and compliance, two items were found to be miscoded and for expenses that represent unallowable activities, and one item lacked complete supporting documentation of the allowable activity. Recommendation - We recommend that Centra continue to provide additional and ongoing education related to the specific requirements of the federal award programs and proper execution of related control activities. Views of Responsible Officials ? Centra management agrees with this recommendation. While Centra provides education on proper coding of expenses, human error can occur. Current internal controls are focused around compliance to Centra?s spend policy and authority limits. While human error is difficult to detect, management can work to prevent future errors by enhancing training materials and providing ongoing education to staff.