CENTRAL COAST VNA & HOSPICE, INC.Non-Profit

Criteria: The Organization must establish and maintain effective internal controls over federal awards to provide reasonable assurance that the Organization is managing the federal awards in compliance with the terms and conditions of the contract. Condition: The federal award allows for expenditures related to COVID-19. During testing we noted insufficient documentation for one expenditure claimed at the beginning of the reporting period. The remaining expenditures sampled had sufficient documentation. Cause: Unexpected employee turnover in management positions. New management did not receive proper documentation of expenditures claimed during this transition. Effect: There was not sufficient backup maintained on all expenditures claimed. Recommendation: The Organization should ensure all backup is maintained for expenditures claimed on use of provider relief funds. If no such backup can be produced, then the expenditures should not be claimed. Management?s Response: Management agrees with this finding. To mitigate future issues, Management will strengthen internal controls by developing a written set of procedures to effectively track the expenditure of future relief funding. These procedures will entail the use of an electronic spreadsheet to document beginning and ending balances of the fund, in addition to individual transactions at the time of occurrence. Each transaction will be clearly described and supported by documents, complete with proper oversight reviews and approvals. Each of the supporting documents shall furthermore be readily referenced from the spreadsheet.