Finding Text
Finding Number 2022-002: Approval of Non-Payroll Expenditures (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 16 of 40 samples of nonpayroll expenditures tested that the Health System did not have internal controls in place to ensure expenditures charged to the program have documentation of management’s review/approval.
Repeat Finding from Prior Year(s): No
Cause and Effect: The Health System did not have proper controls in place to ensure all invoices are reviewed and approved by management prior to disbursements, which could lead to noncompliance with program requirements.
Questioned Cost: None
Recommendation: We recommend management implement policies and procedures to ensure all invoices are reviewed and approved prior to disbursements.
Views of Responsible Officials and Planned Corrective Action: Management agrees with finding. The Health System will review and modify policies and procedures for non-payroll expenditures to ensure management’s review/approval is documented.