FMRS Health Systems, Inc.

2020-001: Block Grants for Prevention and Treatment of Substance Abuse -CFDA# 93.959, Procurement Policies and Procedures Condition: The Agency did not have complete, written procurement policies in compliance with the standards required by the Uniform Guidance (2 CFR Part 200) in place during audit period. Criteria: Under the requirements in the Uniform Guidance, all entities are required to have written procurement policies that conform to applicable Federal laws and regulations and standards. The complete procurement standards are located at 2 CFR Part 200, Sections 317 through 326. Cause: Management has not updated procurement policies in accordance with the Uniform Guidance. Effect: The lack of complete, written policies could result in an improper procurement using Federal funds.

Corrective Action Plan The Federal Audit Clearinghouse: FMRS Health Systems, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2020. Independent public accounting firm: Brown, Edwards and Company, L.L.P. 707 Virginia St E, Charleston, WV 25301 Audit period: June 30, 2020 The finding from the June 30, 2020 schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS - FEDERAL AW ARD PROGRAM AUDIT 2020-001: Block Grants for Prevention and Treatment of Substance Abuse -CFDA# 93.959, Procurement Policies and Procedures Condition: The Agency did not have complete, written procurement policies in compliance with the standards required by the Uniform Guidance (2 CFR Part 200) in place during audit period. Criteria: Under the requirements in the Uniform Guidance, all entities are required to have written procurement policies that conform to applicable Federal laws and regulations and standards. The complete procurement standards are located at 2 CFR Part 200, Sections 317 through 326. Cause: Management has not updated procurement policies in accordance with the Uniform Guidance. Effect: The lack of complete, written policies could result in an improper procurement using Federal funds. Recommendation: Subsequent to year end, management implemented written procurement procedures that align with the Uniform Guidance requirements for all purchases to be made with Federal funds. Views of Responsible Officials and Planned Corrective Actions: Management and Board of Directors updated all agency policies and procedures to comply with the Uniform Guidance. The new Procurement Policy was approved by the board at the December 14, 2020 board meeting. If the Federal Audit Clearinghouse has questions regarding this plan, please call Mary Redman, FMRS Health Systems, Inc., Chief Administrative Officer, 304-256-7100.

2019-001

2019-001: Block Grants for Prevention and Treatment of Substance Abuse -CFDA# 93.959, Procurement Policies and Procedures Condition: The Agency does not have complete, written procurement policies that are in compliance with the standards required by the Uniform Guidance (2 CFR Part 200). Criteria: Under the requirements in the Uniform Guidance, all entities are required to have written procurement policies that conform to applicable Federal laws and regulations and standards. The complete procurement standards are located at 2 CFR Part 200, Sections 317 through 326. Cause: Management has not updated procurement policies in accordance with the Uniform Guidance. Effect: The lack of complete, written policies could result in an improper procurement using Federal funds. Recommendation: Management should draft and implement written procurement procedures to align with the Uniform Guidance requirements for all purchases to be made with Federal funds. Views of Responsible Officials and Planned Corrective Actions: Management and Board of Directors are working on updating all agency policies and procedures to comply with the Uniform Guidance.

The Federal Audit Clearinghouse: FMRS Health Systems, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2019. Independent public accounting firm: Brown, Edwards and Company, L.L.P. 707 Virginia St E, Charleston, WV 25301 Audit period: June 30, 2019 The finding from the June 30, 2019 schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS ? FEDERAL AWARD PROGRAM AUDIT 2019-001: Block Grants for Prevention and Treatment of Substance Abuse -CFDA# 93.959, Procurement Policies and Procedures Condition: The Agency does not have complete, written procurement policies that are in compliance with the standards required by the Uniform Guidance (2 CFR Part 200). Criteria: Under the requirements in the Uniform Guidance, all entities are required to have written procurement policies that conform to applicable Federal laws and regulations and standards. The complete procurement standards are located at 2 CFR Part 200, Sections 317 through 326. Cause: Management has not updated procurement policies in accordance with the Uniform Guidance. Effect: The lack of complete, written policies could result in an improper procurement using Federal funds. Recommendation: Management should draft and implement written procurement procedures to align with the Uniform Guidance requirements for all purchases to be made with Federal funds. Views of Responsible Officials and Planned Corrective Actions: Management and Board of Directors are working on updating all agency policies and procedures to comply with the Uniform Guidance. Management expects the implementation of the corrective actions noted above to be completed by June 30, 2020. If the Federal Audit Clearinghouse has questions regarding this plan, please call Mary Redman, FMRS Health Systems, Inc., Chief Financial Officer, 304-929-5418.