WARREN COMMUNITY HOSPITAL, INC.

2021-003 Department of Health and Human Services Federal Assistance Listing/CFDA #93.498 COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution Applicable Federal Award Number and Year- Period 1 TIN #411384358 Preparation of the Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Health Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to assist in drafting the Schedule. Cause: Auditor assistance with preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Health Center meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Health Center would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding From Prior Years: No Recommendation: We recommend management be aware of the financial reporting requirements relating to the Health Center?s schedule of expenditures of federal awards and internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.

Finding 2021-003 Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution CFDA #93.498 Finding Summary: Eide Bailly LLP assisted in the preparation of our draft schedule of expenditures of federal awards and accompanying notes to the schedule of expenditures of federal awards. Responsible Individuals: Mitch Kotrba, CFO Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for the preparation of the schedule of expenditures of federal awards and accompanying notes. We requested that our auditors, Eide Bailly LLP, assist in the preparation of the schedule of expenditures of federal awards and the accompanying notes as a part of the single audit. We have designated a member of management to review the drafted schedule of expenditures of federal awards and accompanying notes. Anticipated Completion Date: Ongoing