Finding Text
Department of Health and Human Services
Federal 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 #840420041
Department of Agriculture
Federal Financial Assistance Listing #10.766
Community Facilities Loans and Grants Cluster
Preparation of Schedule of Expenditure of Federal Awards
Material Weakness in Internal Control Over Compliance ‐ Other
Criteria – Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires the Hospital to prepare a schedule of expenditures of federal awards (schedule). 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 Hospital does not have an internal control system designed to allow for a complete and accurate Schedule being audited. We were requested to draft the Schedule.
Cause – Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Hospital meets a specified threshold of federal expenditures.
Effect – There is a reasonable possibility that the Hospital would not be able to draft the schedule and the accompanying notes to the schedule that is correct without the assistance of the auditors.
Questioned Costs – None reported.
Context – Sampling was not used.
Repeat Finding from Prior Years – Yes, 2021‐004
Recommendation – While we recognize that this condition is not unusual for an organization with limited staffing, we recommend that management be aware of the reporting requirements relating to the Hospital’s schedule and internal controls that impact reporting.
Views of Responsible Officials – Management agrees with the finding.