Finding Text
2023-003 Department of Agriculture
Federal Financial Assistance Listing #10.766
Communities Facilities Loans and Grants Cluster
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 (the schedule) and accompanying notes to the schedule.
Condition: The Hospital does not have an internal control system designed to provide for the preparation of the
schedule and notes to the schedule. As auditors, we were requested to assist with the preparation of the
schedule and notes to the schedule.
Cause: Auditor assistance with the preparation of the schedule is not unusual as the schedule has unique and
specialized requirements and preparation is only required when the Hospital meets a specific threshold of
federal expenditures.
Effect: There is a reasonable possibility that the Hospital would not be able to draft the schedule and notes to
the schedule that are correct without the assistance of the auditors.
Questioned Costs: None reported.
Context: Sampling was not used.
Repeat Finding from Prior Year: Yes, prior year finding 2022-003
Recommendation: While we recognized that this condition is not unusual for an organization with limited
staffing, we recommend management be aware of the financial reporting requirements relating to the
Hospital’s schedule and the internal controls that impact financial reporting.
Views of Responsible Officials: Management agrees with the finding.