MARLETTE REGIONAL HOSPITALNon-Profit

Type of Finding: Significant Deficiency in Internal Control and Noncompliance Criteria: The American Rescue Plan Funds and Provider Relief Funds are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for healthcare related expenses or lost revenues that are attributable to coronavirus during the period of availability. Condition: The list of payroll expenses supporting amounts reported in the portal as allowable expenses included bonuses, totaling $9,174, for employees who were terminated between the time the list was prepared and the date the bonus was paid. As a result, the list of payroll expenses included $9,174 of bonuses which were not paid out to the identified employees. The internal review process did not identify this matter prior to portal submission. Cause: Management oversight. Effect: Expenses reported in the HHS Provider Relief Reporting were not appropriately supported. However, the Hospital had unreimbursed expenses and unused lost revenue attributable to coronavirus through the end of the reporting period of availability (Period 4) that exceeded $9,174. As a result, this matter did not result in a questioned cost. Recommendation: We recommend management review the supporting documentation prior to reporting the information in the reporting portal and retain all supporting documentation for allowability of expenses attributable to the coronavirus. In addition, management needs to retain detailed support including detailed payroll records to adequately support the amount of expenses being reported during the period of availability. Views of Responsible Official: Management will evaluate the above recommendations and implement recommendations where deemed appropriate.