MOUNT OLIVET CAREVIEW HOME AND MOUNT OLIVET HOME

2021-001 Federal agency: U.S Department of Health and Human Services Federal program title: Provider Relief Fund Assistance Living Number: 93.498 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus Condition: The Organization?s internal controls over compliance related to payroll were not effective. Questioned costs: $3,716.80 Context: During the audit, it was determined that 4 of the 22 payroll disbursements tested were not recorded accurately under the Provider Relief Fund. Four of the payroll expenditures selected were amounts more than the support presented, that portion is unallowable. However, it was noted that the Organization had sufficient expenditures that covered the portion of the expenditure that was unallowed. Cause: Management Oversight Effect: The Organization?s internal controls around compliance were not effective. Repeat Finding: N/A Recommendation: We recommend that management review all expenditures for accuracy and allowability under the criterial provided by the Department of Health and Human Services. However, it was noted that the Organization has enough excess unreimbursed expenses to cover the disbursements noted above and retain the grant funding. Views of responsible officials: There is no disagreement with the audit finding.

U.S. Department of Health and Human Services Mount Olivet Careview Home and Mount Olivet Home respectfully submits the following corrective action plan for the year ended December 31, 2021. Audit period: January 1, 2021 ? December 31, 2021 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS ? MAJOR FEDERAL PROGRAMS AUDIT Department of Health and Human Services 2021-001 & 2021-002 Provider Relief Funds ? Assistance Listing No. 93.498 Recommendation: We recommend that management review all expenditures for accuracy and allowability under the criterial provided by the Department of Health and Human Services. However, it was noted that the Organization has enough excess unreimbursed expenses to cover the disbursements noted above and retain the grant funding. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review and update their policies and procedures to ensure the accuracy of reporting and allowability of expenses under the criterial provided by the Department of Health and Human Services. Name of the contact person responsible for corrective action: Sharon Flack, Controller Planned completion date for corrective action plan: December 2022 If the U.S. Department of Health and Human Services has any questions regarding this plan, please call Sharon Flack at 612-827-5677.

2021-002 Federal agency: U.S Department of Health and Human Services Federal program title: Provider Relief Fund Assistance Living Number: 93.498 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus Condition: The Organization?s internal controls over compliance related to tracking of reportable healthcare related expenses were not effective.Questioned costs: $14,728 Context: During the Audit it was determined that $14,728 of the expenses reported in Quarter 4 of 2020 for reporting period one was not supported. Cause: Management Oversight Effect: The Organization?s internal controls around compliance were not effective. Repeat Finding: N/A Recommendation: We recommend that management review all expenditures for accuracy and allowability under the criterial provided by the Department of Health and Human Services. However, it was noted that the Organization has enough excess unreimbursed expenses to cover the disbursements noted above and retain the grant funding. Views of responsible officials: There is no disagreement with the audit finding.

U.S. Department of Health and Human Services Mount Olivet Careview Home and Mount Olivet Home respectfully submits the following corrective action plan for the year ended December 31, 2021. Audit period: January 1, 2021 ? December 31, 2021 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS ? MAJOR FEDERAL PROGRAMS AUDIT Department of Health and Human Services 2021-001 & 2021-002 Provider Relief Funds ? Assistance Listing No. 93.498 Recommendation: We recommend that management review all expenditures for accuracy and allowability under the criterial provided by the Department of Health and Human Services. However, it was noted that the Organization has enough excess unreimbursed expenses to cover the disbursements noted above and retain the grant funding. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review and update their policies and procedures to ensure the accuracy of reporting and allowability of expenses under the criterial provided by the Department of Health and Human Services. Name of the contact person responsible for corrective action: Sharon Flack, Controller Planned completion date for corrective action plan: December 2022 If the U.S. Department of Health and Human Services has any questions regarding this plan, please call Sharon Flack at 612-827-5677.

2021-003 Type of Finding: ? Material Weakness in Internal Control over Financial Reporting Condition: The Organization does not have a policy in place to provide reasonable assurance that financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP); therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the Corporation?s internal controls. Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Context: While performing audit procedures, it was noted that management does not have internal controls in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected. Cause: The Organization has not adopted a policy to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP; however, management has reviewed and approved the annual financial statements and related notes, as prepared by the audit firm, and has accepted responsibility for those financial statements. Repeat Finding: N/A Recommendation: The Organization should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of responsible officials and planned corrective actions: Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.

Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.