FRIENDSHIP HEALTH AND REHAB CENTER, INC.

2021-001: Provider Relief Fund ? AL# 93.498, Late Filing of Data Collection Form and Submission of Audit Condition: The Foundation did not file their fiscal year 2021 data collection form or audit with the Federal Audit Clearinghouse by the required deadline. Criteria: Under the requirements in the Uniform Guidance and the Office of Management and Budget (OMB), all entities are required to file the annual data collection form with the Federal Audit Clearinghouse the earlier of either 30 days after the issuance of the entity?s annual audit or nine months after the entity?s fiscal year end. With extensions for the COVID-19 pandemic, all entities were granted an additional six months automatically, meaning they had up to fifteen months after year-end, resulting in the Foundation needing to file by September 30, 2022. Cause: The audit was not completed by the deadline, resulting in the inability to file by the deadline as well. Effect: The entity?s form was submitted to the Federal Audit Clearinghouse late, delaying completion of all annual audit requirements for the Foundation. Recommendation: Management should take steps to ensure that the form is filed timely in the future.

CORRECTIVE ACTION PLAN November 3, 2022 The Federal Audit Clearinghouse: Friendship Foundation and Subsidiaries respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 3906 Electric Road Roanoke, VA 24018 Audit period: June 30, 2021 The findings from the June 30, 2021 Schedule of Findings and Questioned Costs (the "Schedule") are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT 2022-001: Provider Relief Fund - AL# 93.498, Late Filing of Data Collection Form and Submission of Audit Condition: The Foundation did not file their fiscal year 2021 data collection form or audit with the Federal Audit Clearinghouse by the required deadline. Criteria: Under the requirements in the Uniform Guidance and the Office of Management and Budget (0MB), all entities are required to file the annual data collection form with the Federal Audit Clearinghouse the earlier of either 30 days after the issuance of the entity's annual audit or nine months after the entity's fiscal year end. With extensions for the COVID-19 pandemic, all entities were granted an additional six months automatically, meaning they had up to fifteen months after year-end, resulting in the Foundation needing to file by September 30, 2022. Cause: The audit was not completed by the deadline, resulting in the inability to file by the deadline as well. Effect: The entity's form was submitted to the Federal Audit Clearinghouse late, delaying completion of all annual audit requirements for the Foundatio n. Questioned Costs: None. Repeat Finding: No. Recommendation: Management should take steps to ensure that the form is filed timely in the future. Corrective Action: In early consultation with the auditors, Management was under the impression that the reporting period for these funds would be part of the June 30, 2022 audit. Upon discovery that these funds were to be reported as of June 30, 2021, management immediately took the necessary steps to ensure that the audit would be completed and filed. Unfortunately, this resulted in a delay of approximately one month past the filing deadline. If the Federal Audit Clearinghouse has questions regarding this plan, please call Mary Rodger, Director of Accounting at 540-265-2177. Sincerely yours, Mary Rodger Director of Accounting