THE CAROL MILGARD BREAST CENTERNon-Profit

Section III - Federal Award Findings and Questioned Costs Finding 2021-001 ? Reporting ? Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance Federal Program: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (Assistance Listing #93.498) Federal Agency: U.S. Department of Health and Human Services Award Year: 2020-2021 Criteria: Under the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program (the Program), providers are required to submit reporting to the Health Resources Services Administration (HRSA) that describes the uses of the funds and how the provider complied with the terms and conditions of the program. Condition: During our testing of the Program reporting of expenses that were reimbursed for Period 2, it was identified that approximately $167,000 of reported expenses were already included in the reporting for Period 1 and were therefore ineligible. However, sufficient lost revenues were reported in Period 1 and Period 2 to cover the duplicated expenses. Cause/Context: The Company misinterpreted the Program reporting instructions and erroneously included expenses from Period 1 again in Period 2 given the overlap of period of availability. Effect: Due to misunderstanding the Program reporting instructions, duplicate expenses and lower lost revenues were reported to HRSA in the reporting Period 2. However, sufficient lost revenues were reported to cover the duplicate expense amount reported of $167,000. Questioned costs: None to be reported. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: We recommend that the Company implement additional review controls for reporting requirements when dealing with new funding. Views of responsible officials: The Company will revise procedures for future reporting and implement additional controls as necessary for new funding.