Controller: $5 million ARPA allotment for Gracedale was transferred, commingled and expended; audit confirms $2.36 million in bonuses paid

The Northampton County controller’s office on June 17 released an agreed‑upon‑procedures audit examining how $5,000,000 in American Rescue Plan Act (ARPA) funds that County Council designated for retention bonuses at Gracedale were handled.

The audit found that $2,360,891.18 in retention bonuses was paid to eligible Gracedale employees between 2022 and April 13, 2025, and that no per‑diem staff or senior administrators received retention bonuses. Of that total, auditors reported $2,204,441.08 was disbursed in 2022–2024 and $156,450.10 was paid in 2025 as of the April 13 pay period. The audit said union memoranda of understanding (MOUs) and contract provisions governed the payments and that the county amended union contracts to reflect retention‑bonus terms.

Controller Zareczki said the office delivered a draft report on May 28 and emphasized the audit was limited to the agreed‑upon procedures agreed with council and staff. The auditors tested a sample of employees and reported the sampled payments matched the program rules; auditors noted minor timing and administrative irregularities, such as catch‑up payments made for prior years, but no overpayments to sampled employees.

The audit also found that, after the ARPA…