Finding 969038 (2021-002)

Material Weakness Assistance Listing 93.498 Criteria: The Hospital must have proper review controls in place and proper support of the review maintained for federal expenditures to determine proper allowable costs for qualifying expenditures and proper review of those costs per the terms and conditions applicable to Provider Relief Funds. Condition: Management could not support the review of certain healthcare expenditures utilized to recognize Provider Relief Funding. The Hospital claimed approximately $1.7 million in healthcare expenditures for the Schedule of Expenditures of Federal Awards reporting period for the year-ended September 30, 2021. Questioned Costs: $0 Effect: The failure to be able to support the review of COVID-19 healthcare expenditures could result in the improper determination of qualifying expenditures per the terms and conditions claimed as Provider Relief Fund expenditures. Cause: The Hospital did not have proper control procedures in place to retain the appropriate support for the controls related to Provider Relief Fund expenditures. Auditor’s Recommendation: We recommend management enhance its internal control procedures to ensure the retention of review documentation is maintained in order to support the review of the allowable costs. This will help ensure allowable costs are in accordance with the terms and conditions prior to claiming such expenditures as being allowable and reported on the portal. Management Response: See corrective action plan.