Finding Text
Criteria
Per the OMB Compliance Supplement 2 CFR Part 200 Appendix XI, Activities allowed for Provider Relief Funds include funds that are available for building or construction of temporary structures, leasing of properties, medical supplies and equipment, including personal protective equipment and testing supplies, increased workforce and trainings, emergency operation centers, retrofitting facilities, and surge capacity. Recipients must use the funding for the following conditions:
• Payment will only be used to prevent, prepare for, and respond to coronavirus and COVID-19, and that the payment shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus and COVID-19
• The recipient certifies that retaining the payment for at least 90 days without contacting HHS regarding remittance of those funds, is deemed to have accepted the Terms and Conditions
• The recipient must provide or have provided after January 31, 2020, diagnoses, testing, or care for individuals with possible or actual cases of COVID-19. The Department of Health and Human Services (HHS) broadly views every patient as a possible case of COVID-19
Condition
In reporting period 5, 1 employee out of 27 employees tested received a stay bonus as compensation that was not initially authorized. The employee was authorized $0 and received $203. Upon review of all employees, 14 were authorized $0 and received a total of $4.3K.
Cause
Management performed an initial authorization of employees to receive the stay bonus compensation. Included on the authorized list were employees to receive $0 of the stay bonus compensation. This was based on their position. After the initial approval of the stay bonus compensation, it was determined that additional individuals were to receive the stay bonus compensation based on duties performed. Subsequent approval was provided for the employees after the stay bonus payment was dispersed to them. This was considered to be a finding for the late approval.
Effect
As timely approval was not provided, the stay bonus for the employee that was received as compensation was not approved or authorized. Per the OMB Compliance Supplement referenced above, this employee could have been somebody that was not allowable and should not have received the compensation.
Questioned Costs
There are no questioned costs associated with this finding as the exception noted relates to the timeliness of approval.
Recommendation
We recommend that Management evaluates all employees authorized $0 of stay bonus compensation to ensure any receiving more had the appropriate authorization to be paid.