PLEASANT VIEW HOME, INC.

Finding: Allowable Costs/Cost Principles and Reporting U.S. Department of Health and Human Services Direct Program: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing No. 93.498, Period 4 Funding Criteria or specific requirement: Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Cost Principles (Pub L. No. 116-136, 134 Stat. 563 and Pub L. No. 116-139, 134 Stat. 622 and 623). The Provider Relief Fund (PRF) was established in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) to reimburse, through grants or other mechanisms, eligible health care providers for increased expenses or lost revenue attributable to Coronavirus Disease (COVID-19). Entities that received more than $10,000 (either one time or in the aggregate) are required to report the uses of their funds, including the lost revenue reimbursement and documentation of how the lost revenue was calculated. In addition, management is responsible for establishing and maintaining effective internal controls over costs directly and indirectly charged to federal awards. Condition: The Corporation claimed and reported duplicative direct COVID-19 expenditures or amounts that were not able to be supported. Questioned costs: $249,380 of COVID-19 expenses that were charged and reported were duplicative and/or unsupported. Context: The Corporation incorrectly re-reported and claimed $249,380 of Period 2 expenses in the Period 4 submission, which resulted in overstating expenses claimed against PRF funds of $249,380. Effect: The ARP Rural and Other PRF expenses for Payments Received included unallowable expenses on the portal submission. Cause: Unallowable costs were included on the portal submission due to the Corporation?s lack of appropriate management review. Identification as a repeat finding: Not applicable. Recommendation: The Corporation should continue to improve understanding of the guidance related to this type of reporting and implement additional controls over future reporting periods to help ensure guidance is followed: Views of responsible officials and planned corrective actions: The Corporation agrees with this finding. See separate auditee document for planned corrective action.

Pleasant View Home, Inc. Year Ended December 31, 2022 Corrective Action Plan Criteria or Specific Requirement ? During the testing of compliance for Federal Assistance Listing No. 93.498, U.S. Department of Health and Human Services Direct Program: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, it was determined that the Corporation had incorrectly re-reported $249,380 in Period 2 expenses in the Period 4 submission, which resulted in overstating expenses claimed against PRF funds of $249,380. This resulted in a total of $249,380 of COVID-19 expenses that were charged and reported which were duplicative and/or unsupported (Reference number 2022-002) Views of Responsible Officials and Corrective Action Plan ? The Corporation continues to improve its understanding of the nuances within the guidance as it relates to charging and reporting direct expenses. Additionally, the Corporation continues to implement additional controls over future reporting periods to help ensure guidance is followed, which is being achieved through educational sessions and additional layers of review over future reporting periods to help ensure guidance is properly followed. It should be noted that while certain expenses were erroneously double counted, the Corporation had sufficient unused Lost Revenues to cover the use of these funds. Personnel Responsible ? Tod Ritcha, CFO Anticipated Completion Date ? Change is in process and full adoption is anticipated by September 30, 2023