Finding Text
U.S Department of Agriculture Federal Financial Assistance Listing #10.766, Grant #02-001-916646223 Community Facilities Loans and Grants Cluster Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance 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: The Hospital?s Federal Financial Report for grant number 02-001-916646223 through the period ending June 7, 2022, was marked as final and indicated the Hospital expended the full $435,625 federal award which was not accurate. Cause: This deficiency is due to a misunderstanding of what was intended to be included on the report submission. Effect: The report to the federal agency contained a material error. There is the potential risk that a federal agency relies on the report in analyzing uses of the federal grant. Questioned Costs: None. Context: No sampling was utilized. All reports were tested. Repeat Finding from Prior Years: No Recommendation: We recommend the Hospital develop internal controls to review and approve proper reporting being claimed for federal award programs and ensure those controls are being performed. Views of Responsible Officials: Management agrees with the finding.