WASHINGTON STATE HOSPITAL ASSOCIATIONNon-Profit

Finding 2020-001 Significant deficiency in internal controls and noncompliance with the reporting requirements. Federal Agency: United States Department of Health and Human Services Assistance Listing Number/Title: 93.889/ COVID-19 - National Bioterrorism Hospital Preparedness Program Award Number: 1 U3REP200635-01-00; 6 U3REP200635-01-02 Award Period: 4/10/2020 - 4/09/2021; 4/10/2020 - 4/09/2021 Criteria In accordance with 2 CFR Part 170, recipients of grants or cooperative agreements who make first tier subawards of $25,000 or more are required to register in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS as required by appendix A to Part 2 CFR part 170. Condition / Context During reporting compliance testing for the year ended December 31, 2020, for one of three subawards tested the amount of the subaward amount reported was $35,5000 which did not agree to the amount obligated in the award document of $30,000. Once the error was identified as part of the audit the correct award amount was updated for in FSRS. Cause The Organizations controls did not operate effectively to identify the award amount identified by the sub awardee on a FFATA reporting form and entered into FSRS differed from the subaward amount. Effect The amount of the subaward was not accurately reported in FSRS. Repeat Finding No Recommendations We recommend the Organization strengthen its internal control process to ensure that all data entered into FSRS is supported by underlying subaward documents. Views of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.