Finding Text
Finding Number 2022-001: Payrate Approval Letters (Significant Deficiency over Internal Control and Instances of Noncompliance over Major Federal Program – Allowable costs/Cost Principles) FALN Number 93.498 Provider Relief Fund
Criteria: 2022 Compliance Supplement and 2 CFR 200.303(a) stated that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and terms and conditions of the federal award.
Condition/Context: As a result of our audit procedures, we noted management did not retain 15 of 20 COVID-related leave approval forms for payroll expenditures tested.
Repeat Finding from Prior Year(s): No
Cause and Effect: The Health System did not have proper controls in place to ensure retention of COVID-related leave forms to support payroll leave expensed, which could lead to unauthorized payroll leave expenses being charged to the program.
Questioned Cost: None
Recommendation: We recommend management implement policies and procedures to ensure that approval of leave forms are retained to support related expenditures.
Views of Responsible Officials and Planned Corrective Action: Management agrees with finding. The Health System will review and modify policies and procedures over the program to ensure management implements policies, procedures, and processes to make sure that leave approval forms are retained and are prepared and reviewed by separate individuals with evidence of review documented.