Finding Text
Finding 2023-004 Department of Health and Human Services
Federal Financial Assistance Listing #93.498
COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Applicable Federal Award Number and Year – Period 4 TIN #420796764
Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Material Weakness 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: The Health Center’s final expenditure listing identified as eligible and claimed under the federal
program were not reviewed and approved by a separate individual outside of the preparer.
Cause: The Health Center had multiple individuals identifying and compiling eligible costs, however, the Health
Center did not have an internal control process in place to ensure a secondary review and approval of eligible
expenditures that were summarized from the underlying supporting spreadsheets to the final expenditure listing
was documented. The summary spreadsheet was used to claim allowable costs under the federal program.
Effect: Without a secondary review and approval, there is a possibility that ineligible expenditures may be
claimed under the program that may not be accurately completed.
Questioned Costs: None reported.
Context/Sampling: Summary level testing was performed over general and administrative expenses including
payroll.
Repeat Finding from Prior Year: No
Recommendation: We recommend Health Center implement a control process which includes a secondary
review and approval of the summarized final expenditure listing used to claim the allowable costs under the
federal program.
Response: Management agrees with the finding.