RIVERS EDGE HOSPITAL & CLINIC

2021-003 Department of Health and Human Services Federal Financial Assistance Listing/CFDA #93.498 COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution (ARP) Applicable Federal Award Number and Year ? Period 1 TIN #416006852 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Hospital is managing the federal awards in compliance with federal statutes, regulations, and terms and conditions of the federal award. Condition: The Hospital?s lost revenue calculation, expense workbook and special reports submitted to the Department of Health and Human Services for Period 1 were not reviewed and approved by a separate individual outside of the preparer. Cause: The Hospital did not have an adequate internal control policy in place to ensure review and approval of the lost revenue calculation, expense tracker, and report submitted to the Department of Health and Human Services for Period 1. Effect: The lack of adequate policies governing review and approval increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None reported. Context: Key line items were tested on the Period 1 Department of Health and Human Services special report, and supporting expense tracker and lost revenue documents. Repeat Finding from Prior Years: No Recommendation: We recommend the Hospital implement a control process which includes a secondary review and approval of required reports and internal supporting documents such as the expense tracking and lost revenue calculation. Views of Responsible Officials: Management agrees with the finding.