LEE MEMORIAL HEALTH SYSTEM

Reporting ? Submission of the Data Collection Form Information on Federal Programs: U.S. Department of Health and Human Services Assistance Listing Number: 93.498 Assistance Listing Name: Provider Relief Funds U.S. Department of Health and Human Services Assistance Listing Number: 93.461 Assistance Listing Name: COVID/CARES Act ? Testing for Uninsured Patients Criteria: In accordance with 2 CFR Section 200.512(a), the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection for the year ended September 30, 2021 was not filed with the Federal Audit Clearinghouse by the deadline of June 30, 2022. Cause: Although the schedule and notes thereto were prepared accurately and timely, the current phase of the federal award and evolvement of compliance guidance caused the System to untimely submit the reporting package and data collection form to the Federal Audit Clearinghouse. Questioned Costs: None noted. Context: This was a condition noted per review of the System?s compliance with the reporting requirements. Effect: Untimely reporting could affect future funding from government agencies. Recommendation: The System?s management was aware of the reporting deadline of its financial package and worked closely with its auditors to properly apply the evolving guidance relating to Provider Relief Funding and submit the financial package. We recommend the System continue to monitor any new guidance around this program or other new federal awards it may receive in the future to ensure proper compliance with all applicable requirements. Views of Responsible Official and Planned Corrective Actions: The System agrees with the federal award finding identified in the audit. The System?s response to this finding is described in the accompanying management?s planned corrective actions.

Management's View and Corrective Action Plan Report on Audit of Financial Statements and on Federal Award Programs in Accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) for the year ended September 30, 2021. 2021-001: Federal Award Findings and Questioned Costs U.S. Department of Health and Human Services Assistance Listing Number: 93.498 Assistance Listing Name: Provider Relief Funds U.S. Department of Health and Human Services Assistance Listing Number: 93.461 Assistance Listing Name: COVID/CARES Act - Testing for Uninsured Patients Award Year: 2021 Lee Memorial Health System (the 'System') is in agreement with the findings of our external audit firm, as it relates to the reporting of federal funds disclosed on the schedule of expenditures of federal awards ('SEFA'). Corrective Action Plan: The System's management was aware of the reporting deadline of its financial package and worked closely with its auditors to properly apply the evolving guidance relating to Provider Relief Funding and submit the financial package. We recommend the System continue to monitor any new guidance around this program or other new federal awards it may receive in the future to ensure proper compliance with all applicable requirements. The System and its auditors have worked closely together to understand and respond to reporting and auditing requirements related to these programs, including certain requirements resulting from guidance that continued to evolve past the reporting deadlines, thus leading to the compliance finding. The System and its auditors have since finalized and applied their understanding of such requirements. Thus, the circumstances that led to the reporting delay have been remediated and are not expected to reoccur.