CHRISTIAN LIVING SERVICESNon-Profit

CFDA Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID-19 Provider Relief Fund Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - The Organization should have internal controls in place to ensure that the calculation of lost revenue attributable to coronavirus is properly calculated and reported within the provider relief funding reporting portal (the "portal") in accordance with Health Resources and Services Administration (HRSA) guidance. Condition - The same individual prepared, reviewed, and input the respective amounts for the lost revenue attributable to coronavirus computation into the provider relief funding reporting portal. For the period 1 submission, the Organization's calculation was incorrectly reported in the portal. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The calculation of lost revenue attributable to coronavirus reported during the second quarter of 2021 in period 1 was approximately $341,000 when actual lost revenue attributable to coronavirus for that respective quarter was $0. The Organization has since corrected the lost revenue calculation in the aggregate as evident in review of their period 2 submission. Cause and Effect - Although the Organization has a methodology and process in place to calculate and report lost revenue attributable to coronavirus, there were no control procedures in place to detect the errors that occurred in the process, including a review by somebody other than the preparer. This resulted in a reporting error with the period 1 portal submission where the Organization reported approximately $5 million in lost revenue when actual lost revenue was approximately $4.7 million. Recommendation - The Organization should implement additional internal control procedures to ensure the computations of lost revenue attributable to coronavirus are reviewed by somebody other than the preparer and that the amounts reported in the portal align with internal financial statements. Views of Responsible Officials and Corrective Action Plan - Management corrected the lost revenue amounts during the period 2 submission and have implemented corrective actions to the Organization's process as of April 2022 to address the finding above.

CFDA Number, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services, COVID 19 Provider Relief Fund Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - The Organization should have internal controls in place to ensure expenses incurred and applied to provider relief funds are supported by the guidance, FAQ's and examples published by the Health Resources and Services Administration (HRSA). Condition - The Organization identified and reported $23,171.50 of expenses incurred as allowable provider relief fund COVID 19 expenses; however during the audit, it was determined that the costs incurred were not clearly identified as being allowable with the guidance, FAQs and examples provided by HRSA. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The Organization identified and reported within the HRSA period submissions approximately $1.3 million of expenditures incurred to prevent, prepare for, and respond to COVID 19. The Organization also reported allowable lost patient care revenue of approximately $5.4 million. During our testing of expenditures, we noted one item for $23,171.50 which did not appear to comply with requirements in accordance with the guidance, FAQs and examples provided by HRSA. The Organization had additional allowable lost patient care revenue of approximately $4.2 million to replace the ineligible cost to fully support amounts received and recognized within the Organization's financial statements the Organization is adjusting the lost patient care revenue and expenses reported in the period 3 portal reporting to reflect the change in allocation. As a result, there are no questioned costs. Cause and Effect - Although the Organization has a process in place to identify and report allowable COVID 19 expenses being charged to the provider relief funds as they are incurred, the aforementioned costs charged to the grant could not be clearly supported as being eligible based on specific guidance, FAQ's and examples published by HRSA. As a result, certain expenses were deemed to be incorrectly identified and reported as an allowable COVID 19 expense covered by provider relief funds. Recommendation - The Organization should implement additional internal control procedures to ensure costs identified and reported are allowable in accordance with the provider relief fund program. Views of Responsible Officials and Planned Corrective Actions - Management understands the finding; however, given the limited guidance regarding identification of allowable costs, believes the costs identified were incurred as a result of funding sought to support COVID 19 expenses and which were not otherwise supported by other funding sources. As noted, the Organization has additional allowable lost patient care revenue to replace the ineligible cost and has adjusted its documentation accordingly in the period 3 portal reporting. Management will avoid identification and assignment of costs not otherwise deemed explicitly allowable.