Finding Text
Finding No: 2023-001 Activities allowed/unallowed and allowable costs
Federal Agency: U.S. Department of Health and Human Services
Pass-Through Entities: N/A
Assistance Listing Number: 93.498
Program: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Award Year: January 1 to March 31, 2023 (Period 4) and July 1 to September 30, 2023 (Period 5)
Criteria or Requirement
Per 2 CFR 200.303, the non-Federal entity 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.
Condition Found, Including Perspective
Bonuses, that were claimed to be COVID-related as reported via the PRF portal, were paid out to St.
Dominic employees for which there was no supporting documentation to validate they were allowable
COVID-related bonuses in accordance with the System’s policies.
Possible Cause
Change in control owners at St. Dominic resulting in management’s failure to retain sufficient
documentation to support the bonus payments.
Questioned Cost
$3,000 for all St. Dominic employees
Effect
Federal funds were possibly expended for unallowable purposes as management could not provide
documentation to support the bonuses were COVID-19 related.
Statistical Validity
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding in the Prior Year
Not a repeat finding.
Recommendation
The System should strengthen controls over the retention of documentation to ensure that management
can provide the necessary documentation to support grant expenditures.
View of Responsible Officials
Management concurs with this finding. Effective January 2022, the System has transitioned the St. Dominic
payroll to be processed centrally at the System in accordance with all System’s processes and procedures.