DAUGHTERS OF ISRAEL, INC.

2021 Corrective Action Plan SUMMARY The Board of Directors and Executive Management of Daughters of Israel, Inc. acknowledge receipt of the audited financial from WithumSmith+Brown, PC for the years ended December 31, 2021 and 2020. David Stafford, Chief Financial Officer, is responsible for ensuring that Daughters of Israel, Inc. implements policies and controls related to the finding below. Management will implement these changes during the year ended December 31, 2022 to ensure any future reporting to HRSA is updated. Listed below is management?s responses to the audit finding which is outlined in the audited financial statements for the year ended December 31, 2021. SECTION II - FINANCIAL STATEMENT FINDINGS There are no current year financial statement findings. SECTION III ? FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS Finding # 2021-001: Criteria/Specific Requirement: Per the U.S. Department Health and Human Services? Post-Payment Notice of Reporting Requirements dated January 15, 2021, ?Provider Relief Fund (PRF) recipients, who received one or more payments exceeding $10,000 in the aggregate?will be required to report as part of the post-payment reporting process.? Condition and Context: HRSA requires that recipients of Provider Relief Fund and American Rescue Plan Rural Distribution program funds file financial and informational reports on a semi-annual basis. The HRSA required reporting is based on the timing and amount of funds received. The report for Period 1 and Period 2 filed by Daughters of Israel, Inc. utilized numbers based upon a combination of actual and estimates. Cause: Daughters of Israel, Inc. did not have procedures in place to reconcile expenditures included in the general ledger to the Period 1 and Period 2 reporting within the HRSA Reporting Portal prior to report submission and did not have a process in place to have independent review and approval of the reports before they were submitted. Effect: Claimed costs to the federal awards could not be reconciled resulting in potential incorrect amounts reported in the HRSA Reporting Portal. Questioned Costs: No questioned costs were noted. Recommendation: Withum recommends that Daughters of Israel, Inc. establish procedures to reconcile the amounts included in the general ledger to the HRSA Reporting Portal and implement review and approval of the reports prior to submission to validate accuracy and completeness of reporting in the HRSA Reporting Portal. In addition, we recommend that Daughter of Israel, Inc. reach out to HRSA and determine any required corrective action including reporting. Management?s Response and Corrective Action Plan Going forward, David Stafford will work with accounting department team to implement procedures to reconcile the amounts included in the general ledger to the HRSA Reporting Portal prior to report submission. Expenditures incurred by Daughters of Israel, Inc. exceeded the total amount received related to the program. David Stafford will reach out to HRSA to determine whether any revised reporting is required.