VALLEY VIEW HAVEN, INC.

2021-001: Significant Deficiency in Internal Control - Reporting Federal Program: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Pass-through Agency: N/A Award Number: N/A Award Year: 2020 Compliance Requirement: Reporting Questioned Costs: Not determinable Criteria: Provider Relief Fund (PRF) payment amounts (excluding Skilled Nursing Facility (SNF) and Nursing Home Infection Control Distribution payments) not fully expended on health care-related expenses attributable to coronavirus may be applied to patient care lost revenues, if applicable. Recipients may choose to apply PRF payments toward lost revenues using one of three options: Option i: of the difference between actual patient care revenues; Option ii: of the difference between budgeted and actual patient care revenues; Option iii: calculated by any reasonable method of estimating revenues. Condition and Context: In the Organization?s reporting submissions, the Organization incorrectly reported lost revenues under Option ii rather than Option iii. The Organization?s methodology for option ii was to use budget-to-actual patient revenues utilizing the 2020 Budget as the base period. The Organization did not have a 2021 budget approved within the appropriate time period indicated by the guidance. Effect: The amounts reported to the Health Resources and Services Administration (HRSA) were not in accordance with established U.S. Department of Health and Human Services reporting guidance. Cause: Management erroneously selected the wrong option. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed and understood, and that information used in preparation of the reports is reviewed, with errors addressed, prior to reporting. View of Responsible Officials: Management agrees with the finding and will choose the correct option on future periods.

Valley View Haven, Inc. Corrective Action Plan For the Year Ended December 31, 2021 Finding 2021-001 Condition In the Organization?s reporting submissions, the Organization incorrectly reported lost revenues under Option ii rather than Option iii. The Organization?s methodology for option ii was to use budget-to-actual patient revenues utilizing the 2020 Budget as the base period. The Organization did not have a 2021 budget approved within the appropriate time period indicated by the guidance. Corrective Action Plan Corrective Action Planned: The Organization agrees with the finding. The Organization confirms that they should have selected option iii when reporting lost revenues due to the 2021 budget not being available by March 27, 2020. Name of Contact Person Responsible for Corrective Action: Dennis Peachey, CFO Valley View Haven, Inc. 4702 E. Main Street Belleville, PA 17004-9251 dpeachey@vvrconline.org Phone: 717-935-2105 Anticipated Completion Date: Controls will be completed by January 31, 2023, for Period 4, which is the next applicable reporting period.