Highpoint Health

Section III - Findings and questioned costs relating to Federal awards: 2022-001 – Submission of single audit reporting package - Criteria – The single audit reporting package was due to the Federal Audit Clearinghouse within nine months after the financial statement reporting period end. - Condition – The single audit reporting package was not submitted within this timeframe. -Questioned costs - $-- -Context – Single audit requirements direct the grant recipient to comply with the filing requisites. - Effect - The single audit reporting package was not submitted to the Federal Audit Clearinghouse within the timeframe which resulted in an instance of noncompliance. - Cause – Due to the execution of asset acquisition agreement with Saint Elizabeth Medical Center d/b/a Saint Elizabeth Healthcare and the eventual transfer of assets and liabilities to Dearborn County, Indiana, the Hospital encountered delays in completing the financial statement audit. As a result, the single audit reporting package was not submitted to the Federal Audit Clearinghouse within the timeframe. - Recommendation – The auditor recommends the Hospital file the single audit reporting package with the Federal Audit Clearinghouse. - Views of Responsible Officials and Planned Corrective Actions – Management understands the due date for single audit reporting package submission to the Federal Audit Clearinghouse and will file the single audit reporting package as soon as possible.

Highpoint Health (the Hospital) respectfully submits the following corrective action plan as of November 30, 2022 and for the period from March 1, 2021 through November 30, 2022. Name and address of independent public accounting firm: Blue & Co., LLC 500 N. Meridian Street, Suite 200 Indianapolis, Indiana 46204 Audit period – As of November 30, 2022 and for the period from March 1, 2021 through November 30, 2022. The finding from the 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule of findings and questioned costs. FINDING RELATED TO FEDERAL AWARDS 2022-001 – Submission of Single Audit Reporting Package Recommendation: The auditor recommended the Hospital file the single audit reporting package with the Federal Audit Clearinghouse. Planned Corrective Action: Management understands the due date for single audit reporting package submission to the Federal Audit Clearinghouse and will file the single audit reporting package as soon as possible. If there are any questions regarding this plan, please contact the Hospital administration office at 812.496.7000.