St. Claire Regional Medical Center, Inc.Non-Profit

MATERIAL WEAKNESS Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.912 – Rural Health Care Services Outreach, Rural Health Network Development, and Small Health Care Provider Quality Improvement Program 2023-001: Untimely Disbursement of Federal Grant Funds Received Compliance Requirement(s): Cash Management Criteria: Cash Management requirements for the U.S. Department of Health and Human Services stipulates that federal cash must be drawn solely to accommodate immediate needs and must not be held more than three (3) working days. Condition – During our testing of the underlying information supporting this cash management requirement, we noted eleven (11) expenditures of the 60 expenditures tested where the federal grant funds received were not disbursed within 3 working days. Cause – The cause of this deficiency is due to the lack of internal controls to ensure proper disbursement of federal grant funds. Effect – The effect is federal grant funds being held in excess of three (3) working days. Recommendation – We recommend the Hospital implement internal control procedures to ensure proper and timely disbursements of federal grant funds. Management’s Response – We will implement internal control procedures to ensure proper and timely disbursements of federal grant funds, as is required under the cash management guidelines stipulated by HHS, in future periods. We do not believe the federal grant funds being held in excess of three (3) working days resulted in an overstatement of the Hospital’s federal grant funds utilized as part of the Rural Health Care Services Outreach, Rural Health Network Development, and Small Health Care Provider Quality Improvement Plan Program.

MATERIAL WEAKNESS Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.912 ? Rural Health Care Services Outreach, Rural Health Network Development, and Small Health Care Provider Quality Improvement Program 2022-001: Untimely Disbursement of Federal Grant Funds Received Compliance Requirement(s): Cash Management Criteria: Cash Management requirements for the U.S. Department of Health and Human Services stipulates that federal cash must be drawn solely to accommodate immediate needs and must not be held more than three (3) working days. Condition ? During our testing of the underlying information supporting this cash management requirement, we noted eight (8) expenditures of the 60 expenditures tested where the federal grant funds received where not disbursed within 3 working days. Cause ? The cause of this deficiency is due to the lack of internal controls to ensure proper disbursement of federal grant funds. Effect ? The effect is federal grant funds being held in excess of three (3) working days. Recommendation ? We recommend the Hospital implement internal control procedures to ensure proper and timely disbursements of federal grant funds. Management?s Response ? We will implement internal control procedures to ensure proper and timely disbursements of federal grant funds, as is required under the cash management guidelines stipulated by HHS, in future periods. We do not believe the federal grant funds being held in excess of three (3) working days resulted in an overstatement of the Hospital?s federal grant funds utilized as part of the Rural Health Care Services Outreach, Rural Health Network Development, and Small Health Care Provider Quality Improvement Plan Program.