JACKSON COUNTY MEDICAL CARE FACILITYLocal Government

2021-003 - Allowable Costs/Cost Principles ? Payroll Documentation Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Allowable Costs/Cost Principles) Program. Provider Relief Fund ("PRF"); ALN 93.498. Criteria. The Uniform Guidance requires the Facility to support payroll charged to federal cost objectives with adequate documentation in accordance with the Facility's payroll policies. Per the Facility's policies, supervisors are to review timesheets. Additionally, per the Uniform Guidance, charges to grants should be allowable under the grant. Condition. The current accounting system does not maintain evidence to support the supervisory review of timesheets. In addition, one of the 40 payroll transactions selected for testing was for a payment made to an individual who did not meet the criteria to be charged to the PRF. Cause. This condition was the result of limitations of the current payroll system. Effect. As a result of this condition, the Facility applied PRF funding to expenses that are unallowable under the grant. Questioned Costs. The total charges that were not supported by allowable documentation amounted to $1,021. Recommendation. We recommend that the Facility subject all employee timesheets to a timely review by an individual independent of the employee, and documentation of that review be retained. Additionally, we recommend that the Facility review its procedures for documenting non-routine payroll disbursements to verify that supporting documentation clearly ties to amounts paid. View of Responsible Officials. These transactions were outside the normal course of business due to COVID-19. We understand the recommendation and will look for opportunities to implement them within the confines of our current software system. In regards to the employee timesheets, the process of supervisors reviewing the employees timesheet has continued however the system does not track documentation of this. In regards to the finding of the unallowable cost this finding is a unique circumstance due a transfer of an employee from one position to another. Since 2020 when these wages were reported, a custom report has been created with our payroll company that addresses this issue and prevents this in the future. Responsible Official. Destiny Wilkins, Administrator

2021-004 - Allowable Costs/Cost Principles ? Disbursements Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Allowable Costs/Cost Principles) Program. Provider Relief Fund ("PRF"); ALN 93.498. Criteria. The Provider Relief Fund may only be used to reimburse the recipient for costs associated with the following items and services ("Infection Control Expenses"): a) Costs associated with administering COVID-19 testing; b) Reporting COVID-19 test results to local, state, or federal governments; c) Hiring staff, whether employees or independent contractors, to provide patient care or administrative support; d) Expenses incurred to improve infection control, including activities such as implementing infection control ?mentorship? programs with subject matter experts or changes made to physical facilities; e) Providing additional services to residents, such as technology that permits residents to connect with their families if the families are not able to visit in person; and f) The recipient must provide or have provided after January 31, 2020, diagnoses, testing, or care for individuals with possible or actual cases of COVID-19. Condition. Of the 40 disbursement selections tested, 1 was unallowable under PRF in the amount of $89. Cause. This condition was the result of a lack of internal controls in place subsequent to the entry of the expense into the general ledger. Effect. As a result of this condition, the Facility applied PRF funding to expenses that are unallowable under program guidelines. Questioned Costs. No costs have been questioned as a result of this finding. Recommendation. We recommend that the Facility review its procedures for approving disbursements to ensure that an individual knowledgeable of the requirements of federal programs verifies that costs charged are allowable. View of Responsible Officials. These transactions were outside the normal course of business due to COVID-19. We understand the recommendation and will look for opportunities to implement additional internal controls post entry into the accounting system. This was a simple clerical error with the input of the GL code into the system not matching what was authorized on the invoice. Responsible Official. Destiny Wilkins, Administrator