EIN: 916057438
UEI: GSA_MIGRATION
Data as of August 22, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 29, 2022. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 29, 2023 (1242 days ago).
What is a management decision? →Significant deficiency in internal controls related to compliance with the allowable cost provisions. Federal Agency: U.S. Department of Health and Human Services Program Title: COVID-19 - Provider Relief Fund Assistance Listing Number: 93.498 Award Number: Not Applicable Award Period: January 1, 2020 - June 30, 2021 Criteria Per 45 CFR 75 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Section 75.303, the Organization must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Per the Organization?s internal control documentation related to ensuring expenses claimed under the Provider Relief Fund program are allowable based on the Health Resources & Services Administration (HRSA) guidelines, all non-payroll expenses claimed under the Provider Relief Fund program must be reviewed and approved by the Controller. Condition/Context For 19 out of a sample of 27 non-payroll disbursements claimed under the Provider Relief Fund program that we tested, there was no evidence of review and approval by the Controller as to allowability under the program. Our sample was not a statistical sample. Questioned Costs Not applicable. Cause The Organization did not have adequate procedures to ensure that non-payroll expenses claimed under the Provider Relief Fund program were reviewed and approved by the Controller. Effect/Potential Effect There could have been undetected non-payroll expenses claimed under the Provider Relief Fund program that that were not allowable per the HRSA guidelines. Repeat Finding Not applicable. Recommendation We recommend management implement procedures to ensure that expenses claimed under federal programs are properly reviewed and approved for compliance with the allowable cost provisions per applicable federal guidelines and/or cost principles. Views of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.
Show full finding ▾Hide full finding ▴Significant deficiency in internal controls related to compliance with the allowable cost provisions. Federal Agency: U.S. Department of Health and Human Services Program Title: COVID-19 - Provider Relief Fund Assistance Listing Number: 93.498 Award Number: Not Applicable Award Period: January 1, 2020 - June 30, 2021 Criteria Per 45 CFR 75 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Section 75.303, the Organization must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Per the Organization?s internal control documentation related to ensuring expenses claimed under the Provider Relief Fund program are allowable based on the Health Resources & Services Administration (HRSA) guidelines, all non-payroll expenses claimed under the Provider Relief Fund program must be reviewed and approved by the Controller. Condition/Context For 19 out of a sample of 27 non-payroll disbursements claimed under the Provider Relief Fund program that we tested, there was no evidence of review and approval by the Controller as to allowability under the program. Our sample was not a statistical sample. Questioned Costs Not applicable. Cause The Organization did not have adequate procedures to ensure that non-payroll expenses claimed under the Provider Relief Fund program were reviewed and approved by the Controller. Effect/Potential Effect There could have been undetected non-payroll expenses claimed under the Provider Relief Fund program that that were not allowable per the HRSA guidelines. Repeat Finding Not applicable. Recommendation We recommend management implement procedures to ensure that expenses claimed under federal programs are properly reviewed and approved for compliance with the allowable cost provisions per applicable federal guidelines and/or cost principles. Views of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.
Finding Number 2021-001 Finding: Significant deficiency in internal controls related to compliance with the allowable cost provisions. Federal Agency: U.S. Department of Health and Human Services Program Title: COVID-19 ? Provider Relief Fund Assistance Listing Number: 93.498 Contact Person(s): Julie Peterson, Chief Financial Officer Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Not applicable. Corrective action planned: Management will complete the implementation and cause the effective operation of policies and procedures to ensure that expenses claimed under all federal programs, to the extent NKC participates in such program(s) in the future, are properly reviewed and approved for compliance with the allowable cost provisions pursuant to applicable guidelines and/or cost principles, and that such reviews are appropriately documented. Anticipated completion date: March 31, 2023, unless sooner warranted by NKC?s subsequent participation in a federal program.
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