Androscoggin Home Health Service, Inc. d/b/a Andwell Health Partners

Finding Number: 2025-001 Information on the Federal Program: Federal Agency: United States Department of Agriculture Program Names: Community Facilities Loans and Grants AL: 10.766 Federal Award Year: 2024 Criteria: The Association was required to deposit $8,335 annually into a reserve account for a 10-year period beginning October 2, 2010, until the reserve account reached a balance of $100,020. Subsequent to the 10-year funding period, the Association is required to maintain a minimum balance of $100,020. Condition Found: During the audit we noted the Association has not maintained the reserve balance as required. Context The Community Facilities Loan and Grant was assumed by the Association through an acquisition of Sandcastle. It was also noted through the review of the original Loan Resolution and Letters of Conditions, two different amounts were noted for the required reserve balance of $11,152 and $111,516, respectively. Questioned Costs None. Cause and Effect: The Association intended to sell the property associated with the Community Facilities Loan and Grant and therefore decided not to fund the reserve to the required amount. The property was sold and the Association no longer held the loan as of December 31st, 2025. Identification as a Repeat Finding, if Applicable: Yes, 2024-001 Recommendation: Due to the sale of the property and repayment of the loan prior to December 31, 2025, there are no further actions to take on the Association’s part. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan attached.

Condition Found: During the audit we noted the Association has not maintained the reserve balance as required. Response: Androscoggin Home Health Services, Inc. d/b/a Andwell Health Partners paid off the total amount of debt to the United States Department of Agriculture under the federal program, Community Facilities Loans and Grants prior to December 31, 2025 to satisfy loan requirement, and the future reserve is no longer deemed necessary. Responsible Party: Dr. RJ Gagnon, DBA, MBA, CHFP, CSAF Chief Financial and Operating Officer (207) 777-7740 Anticipated Completion Date: 12/31/25

2024-001

Information on the Federal Program: Federal Agency: United States Department of Agriculture Program Names: Community Facilities Loans and Grants AL: 10.766 Federal Award Year: 2024 Criteria: The Association was required to deposit $8,335 annually into a reserve account for a 10-year period beginning October 2, 2010, until the reserve account reached a balance of $100,020. Subsequent to the 10-year funding period, the Association is required to maintain a minimum balance of $100,020. Condition Found: During the audit we noted the Association has not maintained the reserve balance as required. Context The Community Facilities Loan and Grant was assumed by the Association through an acquisition of Sandcastle. It was also noted through the review of the original Loan Resolution and Letters of Conditions, two different amounts were noted for the required reserve balance of $11,152 and $111,516, respectively. Questioned Costs None. Cause and Effect: The Association was unaware of the specific reserve requirements. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend the Association work with the local Rural Development (RD) office to determine the payment schedule to deposit amounts in order to bring the reserve balance to the required minimum level. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan on page 38.

Condition Found: During the audit we noted the Association has not maintained the reserve balance as required. Response: Androscoggin Home Health Services, Inc. d/b/a Andwell Health Partners will be fully funding the reserve gap in the amount of $84,813.72 in fiscal year 2025. The required reserve will be fully funded to meet the compliance of the Loan Resolution and Letters of Conditions with the United States Department of Agriculture under the federal program, Community Facilities Loans and Grants. Responsible Party: Dr. RJ Gagnon, DBA, MBA, CHFP, CSAF Chief Financial and Operating Officer (207) 777-7740 Anticipated Completion Date: No later than December 31, 2025

Finding Number: 2021-001 Information on the Federal Program: Federal Agency: United States Department of Health and Human Services Program Name: Provider Relief Funds AL: 93.498 COVID-19 Provider Relief Funds Federal Award Identification Number: N/A Federal Award Year: Year Ended June 30, 2021 Specific Requirement: In accordance with Title 2 U.S. Code of Federal Regulations Part 200, Subpart D, Section 200.303a, the Organization is required to 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: In June 2020, the Association implemented the MatrixCare billing system (EMR). We noted the following areas where controls should be implemented or strengthened. ? During our walkthrough of the payroll process, we noted employee hours are entered into the EMR each pay period and are exported to a CSV file. The CSV file is then uploaded into ADP, the payroll processor. We understand the CSV file is modified by the Human Resource Specialist by consolidating employee hours prior to uploading to ADP without a documented review by another person. Since the Human Resource Specialist is responsible for payroll and is performing this function she effectively is reviewing her own work without the control of a documented review by another person. ? The time exported from the EMR does not include control totals to facilitate the reconciliation of the accuracy of the hours imported into ADP. We noted several individuals, including the Human Resource Specialist and various supervisors in the Association, have the ability to manually update an employee?s time; however, the EMR does not produce a change report that identifies manual changes made. Through our payroll walkthrough procedures, we did note one instance where an employee was paid for 24 more minutes of work than she had recorded in the EMR due to a manual change being made to the CSV file prior to the upload to ADP. Section III. ? Findings and Questioned Costs for Federal Awards (concluded) Context: Based on our sample, which was based on a statistically-based methodology, 5 of the 7 employees who were tested for specific time that was charged to the grant through the time reporting had manual edits to the time that was paid through the payroll provider. Cause and Effect: Due to a software conversion in June 2020, management had not identified all of the areas related to payroll that needed controls to maintain proper internal control over financial reporting as it related to payroll. With a lack of a detailed and timely review over the manual edits made to time reporting, there could be inappropriate or incorrect time paid out to employees. There is also the risk that an employee is paid lower than the amount they had earned. Questioned Costs: None Identification as a Repeat Finding, if Applicable: Not a repeat finding Recommendation: We recommend the Association implement an independent, detailed review of a payroll amounts, including a process to match the time recorded in the EMR to the time paid via ADP. We also recommend the Association review its user access for the individuals with the ability to manually change time in the EMR to limit this to a small number of authorized individuals. The Association should develop a procedure for requesting manual adjustments to time reporting and document when changes are made that includes how much and by whom. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan on page 31.

Finding 2021-001 Corrective Action Plan As of January 1, 2021, Management of Androscoggin Home Health Services, Inc. d/b/a Androscoggin Home Healthcare + Hospice has implemented a process whereby an independent, detailed review of payroll activity that compares the time recorded in the electronic medical record to the time paid via ADP. Management also implemented a more formal approval process, which strengthens our internal control around the validity of payroll process to include small number of authorized individuals making change requests to payroll. Lastly, Management developed an internal payroll audit process performed by Finance team to audit payroll registers monthly to address areas of weakness to our controls related to finding number 2021-001. In addition to the monthly audit process to registers, Management is also performing `surprise? audits on a quarterly basis to payroll records without informing the payroll department as this process will inform management how the internal controls within our payroll system are working while keeping clear audit objectives to eliminate the risk of deficiencies to our internal controls. The Finance team will be documenting all audit procedures and they will be reviewed by the Chief Financial Officer who will sign off on the approval of the audit. These documents will be presented to our external audit firm as part of the interim fieldwork addressing the internal controls of Androscoggin Home Health Services, Inc.