Finding Text
Department of Health and Human Services
Federal Assistance Listing/CFDA #93.498
COVID‐19 Provider Relief Fund and American Rescue Plan Rural Distribution
Applicable Federal Award Number and Year – Period 1 TIN #450255914
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 Medical Center claimed lost revenues that were incorrectly calculated or not supported. These were improperly included within the HHS Report Period 4 and caused the Report to be inaccurate.
Cause: The Medical Center over claimed lost revenue under option i by not factoring in the audit adjustments for fiscal years 2019, 2020, and 2021.
Effect: The lack of adequate policies over the special report preparation and submission increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: None reported. While lost revenue was overstated by $170,615, the Medical Center reported excess lost revenue of $521,021.
Context: All key line items in the HHS report for Period 4 were tested.
Repeat Finding from Prior Years: Yes, 2021‐008
Recommendation: We recommend that the Medical Center enhance internal control policies to ensure that the required reports are properly reviewed prior to submission to ensure all key line items are necessary, correct, meet the requirements of the federal program, and are properly recorded in the reports required to be submitted to the federal agency.
Views of Responsible Officials: Management agrees with the finding.