MADISON HEALTHCARE SERVICESNon-Profit

2021-001: Missing Adequate Support for Incremental Payroll Costs Type of Finding: Internal Control Over Compliance Finding - Significant Deficiency Statement of Condition: The Organization did not have adequate internal controls to ensure payroll costs were allowed. Criteria: The Provider Relief Funds are to be used to prevent, prepare for, and respond to coronavirus and the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Cause of Condition: Lack of controls Effect of Condition: The Organization?s internal controls over compliance related to payroll were not effective and as a result caused a greater risk of error. However, there were no errors identified. Recommendation: Although errors were not identified in the amount of expense reported we recommend the Organization retain adequate support for incremental payroll costs related to preventing, preparing for, and responding to the coronavirus to mitigate the risk of errors in the amount reported. It was noted that the total allowable costs far exceeded those incremental costs included on the Period 1 submission and there was therefore no noncompliance noted. Management?s Response: Management will review calculations and support for all payroll expenditures to ensure accuracy in future reporting.