Maryhurst Inc.

Criteria: Funding from the U.S. Department of Health and Human Services (HHS) for the Provider Relief Funds requires the reporting of certain financial data on the Department?s reporting portal, in order to substantiate the funding is earned. Statement of Condition: It was noted that the Period 2 and Period 3 reports were filed on the portal using inaccurate financial data. Cause of Condition: In August 2021, the prior CFO left Maryhurst, resulting in the inability of Maryhurst to prepare and submit accurate reports. A new CFO was hired in late 2021. The Provider Relief Funds, reporting is unique in comparison to other grants, as the reporting occurs several months after the funds are received, and the period has ended for using the funds. The Period 2 funds were received in September 2020, with the deadline to use the funds by December 2021, and a reporting date of March 2022. The Period 3 funds were received in January 2021, with the date to use the funds by June 2022, and a reporting date of September 2022. Effect of Condition: The Period 2 and Period 3 reports were completed and filed using inaccurate revenues and salaries to substantiate the funds were used according to terms and conditions. While it was later determined that the funds were appropriately earned, through a combination of lost revenues and various COVID allowable expenditures, the amounts listed on the reports were inaccurate. Currently, there is not a means for amending these filings with HHS. Recommendation: Management should review its procedures of accurate completion and submission of the required Provider Relief Funds reporting in accordance with the terms and conditions. Views of Responsible Officials: Management agrees with this finding and has reviewed their procedures with accounting staff to ensure future compliance with required reporting.

Finding ? Compliance Significant Deficiency Finding 2022-001: FALN 93.498 Provider Relief American Rescue Plan Recommendation: Management should review its procedures of accurate completion and submission of the required Provider Relief Funds reporting in accordance with the terms and conditions. Action Taken: Management has reviewed their procedures with accounting staff to ensure future compliance with required reporting.