Finding Text
2022-002 Department of Health and Human ServicesFederal Financial Assistance Listing/CFDA #93.498COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural DistributionApplicable Federal Award Number and Year ? Period 1 and Period 2 TIN#460242831Preparation of Schedule of Expenditures of Federal AwardsMaterial Weakness in Internal Control Over ComplianceCriteria: Proper controls over financial reporting include the ability to prepare the combined schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule.Condition: The Center does not have an internal control system designed to provide for the preparation of the schedule. As auditors, we were requested to assist with the preparation of the schedule.Cause: Auditor assistance with the preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Center meets a specified threshold of federal expenditures.Effect: There is a reasonable possibility that the Center would not be able to draft 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: NoRecommendation: While we recognized that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Center?s schedule and the internal controls that impact financial reporting.Views of Responsible Officials: Management agrees with the finding.