South Sunflower County HospitalLocal Government

Section III: Federal Award Findings Finding 2021-001 Allowable Activities and Costs Significant Deficiency, Internal Control Over Compliance Assistance Listing Number: 93.498 COVID-19 Provider Relief Fund Federal Agency: Department of Health and Human Services Award Year: 2020 Federal Award Identification: PRF20200001 Pass-Through Entity: N/A Criteria: Per CRF 200.303, non-federal entity must establish and maintain effective internal control over the federal that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Condition: The hospital had two costs that were claimed as direct expenses for the PRF that did not meet the use of funds deadline June 30, 2021. The costs were for items that were after June 30, 2021. Cause: The hospitals internal control system was not properly designed to ensure that the allowable costs were for payments prior to the June 30, 2021 deadline for use of funds Effect: The hospital's internal control process was not effectively implemented and resulted in disallowed costs Questioned Costs: $20,750 Perspective: Two out of the twenty-five tested did not meet the terms and conditions of the PRF program. The sample was not a statistically valid sample. Identification as a repeat finding: N/A Recommendations: We recommend strengthening and improving controls necessary to ensure allowable costs are for payments prior to the PRF deadline of use of funds Views of Responsible Officials and Planned Corrective Action: Management concurs with auditor's finding and recommendation 2020-001 Significant Deficiency in Internal Controls over Financial Reporting Initial Finding Year: 2020 Recommendation: Management should evaluate any unusual transactions and events that occur and consider the impact of these transactions of events on the year-end financial reporting Current Status: Corrected