Finding Text
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 #370645239
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 Organization included a lost revenues in the Department of Health and Human Services (HHS) special report for Period 4 that were incorrectly calculated which caused the report to be inaccurate.
Cause: The Organization did not have an adequate internal control policy in place to ensure the lost revenue calculation that was reported on the HHS report was complete and accurate.
Effect: The lack of adequate policies governing report preparation and submission increases the risk that the report could be filed incorrectly.
Questioned Costs: None reported. Had the lost revenue calculation been reported correctly, lost revenue would have decreased by $512,211. However, the Organization did not claim any lost revenue in Period 4, so there would be no funds to return.
Context: There was one lost revenue calculation required for the HHS Period 4 special report, and it was selected for testing.
Repeat Finding from Prior Years: Yes, Finding 2021‐009.
Recommendation: We recommend that the Organization implement procedures to ensure the lost revenue calculation reported on the HHS special report meet the requirements of the federal program.
Views of Responsible Officials: Management agrees with the finding.