BRATTLEBORO RETREAT

Finding 2021-002 Criteria: Management is responsible for the design, implementation, and maintenance of effective internal control over financial reporting that provides reasonable assurance the internal control will prevent misstatements, intentional or unintentional, from occurring, or detect and correct misstatements on a timely basis. Additionally, management is responsible for maintaining complete and accurate financial records. Condition: The information entered by the Retreat into the Provider Relief Funds (PRF) Portal (Portal) for Period 1 and Period 2 was not reported timely, was inadvertently summarized, and lacked sufficient review prior to submission. Cause: The federal program is a new program as a result of the COVID-19 pandemic and, due to a large amount of staff turnover in the finance department and multiple priorities, management had not focused on the PRF reporting requirements and the need to implement sufficient review prior to submitting the information in the Portal. Effect: The Retreat did not report the following information timely, accurately and/or correctly for Portal reporting Periods 1 and/or 2: a. Other assistance received in Quarters 1 and 2 of 2020 omitted ~ $6.6 million of State funds received under the Coronavirus Relief Fund b. Other PRF and unreimbursed expenses were not correctly classified c. 2020 net patient service revenue was understated by approximately $3.6M d. Lost revenues were not correctly reported due to item (b) above Recommendation: We recommend management provide education to employees responsible for grant management and reporting and implement a review system for any future submissions, placing higher scrutiny on the source documentation of the information being reported. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and recommendation. See Corrective Action Plan on page 39. Responsible party: Linda Rossi; Interim Chief Executive Officer; (802) 258-3737.

RE: Finding 2021-002 The Brattleboro Retreat's management agrees with finding 2021-002 noted in the "Schedule of Finding and Questioned Costs" for the reporting year ending December 31, 2021. As part of the Corrective Action Plan, prior to the next reporting period the Brattleboro Retreat will provide on-line training and additional continuing professional education to those staff members responsible for the facility's Grant Management processes. Additionally, the Brattleboro Retreat will implement a procedure whereby a formal review by the facility's Chief Financial Officer will be conducted prior to the required portal submission(s). Linda Rossi, Interim CEO and President The Brattleboro Retreat