NETWORK PROVIDER ASSOCIATES PC

Findings Reference Number: 2021-001 ? Material Weakness in Internal Control over Compliance and Noncompliance with Reporting Criteria The amounts reported to Health Resources & Services Administration as Other Provider Relief Fund Expenses for Payments Received During Payment Period: July 1, 2020 to December 31, 2020 should relate to non-reimbursed qualifying expenses. Condition We noted that the amounts reported as Other Provider Relief Fund Expenses for Payments Received During Payment Period: July 1, 2020 to December 31, 2020 related to supplies that were already reimbursed by patients. Cause The Company incorrectly reported supply expenses that were reimbursed rather than reporting other qualifying operating expenses that were non-reimbursed. Effect or Potential Effect As reported to Health Resources & Services Administration: Other Provider Relief Fund Expenses for Payments Received During Payment Period: July 1, 2020 to December 31, 2020 Q1 (2020) Q2 (2020) Q3 (2020) Q4 (2020) Q1 (2021) Q2 (2021) Q3 (2021) Q4 (2021) Total Supplies $ - $ 123,105 $ 349,503 $ 335,445 $ 170,389 $ - $ - $ - $ 978,442 As should have been reported to Health Resources & Services Administration: Other Provider Relief Fund Expenses for Payments Received During Payment Period: July 1, 2020 to December 31, 2020 Q1 (2020) Q2 (2020) Q3 (2020) Q4 (2020) Q1 (2021) Q2 (2021) Q3 (2021) Q4 (2021) Total Other G&A Expenses $ - $ 978,442 $ - $ - $ - $ - $ - $ - $978,442 We examined the Company?s updated expenses analysis and concluded that the Company did have sufficient operating expenses in those other categories that should have been reported to the Portal for their Period 2 submission. Recommendation Ensure reporting is in compliance with the requirements promulgated by the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program as administered by the Health Resources and Services Administration. Views of Responsible Officials Management of the Company will review our compliance procedures and implement additional controls to ensure proper compliance with future filings

Recommendation Ensure reporting is in compliance with the requirements promulgated by the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program as administered by the Health Resources and Services Administration. Views of Responsible Officials Management of the Company will review our compliance procedures and implement additional controls to ensure proper compliance with future filings.

Reference Number: 2021-002 ? Material Weakness in Internal Controls Criteria: 93.498 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Condition: During the course of the audit, we identified a material weakness in internal controls due to a lack of controls in the financial, accounting and reporting processes, including a lack of segregation of duties, and in the general controls over the Company?s information technology systems and environment. Cause: Segregation of duties were not appropriately designed from both a manual control or system perspective. Various systems had users that had inappropriate administrative access. Effect or Potential Effect: No material misstatements were identified as a result of the audit, but the lack of segregation of duties has the potential to result in a material misstatement. Recommendation: We recommend that management establish necessary controls to ensure the appropriate segregation of duties within the financial closing and reporting process including the systems used in that process. Views of responsible officials: Management of the Company will review our overall control environment, including segregation of duties matters within our financial, accounting and reporting processes and related system user roles and functionalities, and general controls over the Company?s information technology systems and environment and implement additional controls mitigate or compensation for applicable risks

Recommendation: We recommend that management establish necessary controls to ensure the appropriate segregation of duties within the financial closing and reporting process including the systems used in that process. Views of responsible officials: Management of the Company will review our overall control environment, including segregation of duties matters within our financial, accounting and reporting processes and related system user roles and functionalities, and general controls over the Company?s information technology systems and environment and implement additional controls mitigate or compensation for applicable risks.