AUBURN SENIOR SERVICES, INC.Non-Profit

U.S. Department of Health and Human Services: Provider Relief Fund and American Rescue Plan (ARP) Rural Distributions (Federal Assistance Listing Number 93.498) Finding No. 2021-02 ? Lost Revenue Reporting ? Compliance Finding Criteria: Under the terms and conditions of the awards, accurate amounts that agree with the entity's financial records are required to be reported in the Provider Relief Fund report. Condition: The Period 1 Provider Relief Fund report was submitted on November 29, 2021 based on preliminary internal financial statement net patient service revenues for the various quarters in 2020 which did not include final adjustments after year end posted to the trial balance. As a result, the auditee reported actual revenues for 2020 that were not accurate and did not agree to 2020 audited financial statements. Context: This finding appears to be an isolated instance. Effect: The actual revenue for 2020 was understated by $164,338, which resulted in an overstatement of lost revenue. However, the reporting did not impact the PRF funding received and retained by the auditee from this error as they had significantly more lost revenue than PRF funding received. Cause: Auditee used preliminary internal year to date trial balance net patient service revenue amounts instead of the final adjusted trial balance net patient service revenues after final closing and audit adjustments. Questioned Costs: None reported. Recommendation: We recommend the auditee update the revenue data for 2020 to actual revenue in future HRSA PRF reporting periods. Views of Responsible Official: Management agrees with this finding. See corrective action plan.

Finding No. 2021-03 ? Reporting ? Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: There were certain amounts relating to net patient service revenues for 2020 that did not agree to the 2020 audited financial statements on the Period 1 report submitted on the HRSA portal. There was no evidence retained that this special report submitted in November 2021 to the Department of Health and Human Services for Period 1 was reviewed and approved by a separate individual outside of the preparer Context: This finding appears to be an isolated instance. Effect: Without documentation of a secondary review and approval, demonstrating internal controls over compliance is difficult. Cause: There was turnover of several financial positions and staff shortages during 2021. Due to the turnover, the auditee did not have an internal control process in place to ensure review and approval of the lost revenue calculation claimed under the federal program and the report submitted to the Department of Health and Human Services for Period 1. Questioned Costs: None reported. Recommendation: We recommend that management implement a control process which includes a documented secondary review and approval. Views of Responsible Official: Management agrees with this finding. See corrective action plan.