EDWARDSVILLE NH LLC

ITEM: 2021-001 REPORTING ON THE PROVIDER RELIEF PORTAL Finding Type: Compliance and Significant Deficiency. Condition: During our testing, it was noted that there was a reporting error in the amount of Lost Revenues utilizing the Alternative Reasonable Method that occurred in the Organization?s HHS Reporting Portal (the ?Portal?) submission for Period Two. Specifically, the Organization: ? Did not report quarterly lost revenues ?net of bad debts? for both 2020 and 2021. ? The lost revenue calculations for each of the quarters in 2020 was correctly reported and utilized a budget that was approved before the March 27, 2020 published deadline. However, the lost revenue calculations for each of the quarters in 2021 utilized a budget that was approved after the March 27, 2020 published deadline. Criteria: Internal controls should be in place that provide reasonable assurance that the amounts reported are reported consistent with the published guidelines. Cause: There were not sufficient internal controls to assure that the formula utilized to calculate lost revenue included all of the components and restrictions consistent with published guidelines. Effect: The amounts of lost revenue reported by quarter in the Portal were misstated. However, these misstatements had no impact on the amounts reported on the accompanying SEFA. The Organization had actual expenditures and lost revenues incurred to prevent, prepare for and respond to COVID-19, and infection control to support the full utilization of the PRF distributions received. Accordingly, while we are reporting the error as a finding, it did not result in a questioned cost. Recommendation: Procedures should be implemented requiring a review from an appropriate independent member of management to ensure that the formula and components are consistent with published guidelines. Additionally, based on current guidance from HRSA, the Organization should update the amounts of reported lost revenue for each of the quarters for 2020 and 2021 in the next available Portal submission (e.g., Period Four) so that the corrected lost revenues amounts are reflected in the Portal. Questioned Costs: None Management?s Response and Correction Action Plan: The Organization has created a Corrective Action Plan which includes adoption of new internal control procedures to have an additional member of management review the calculations and portal submission. The Organization has further performed a full reconciliation of quarterly lost revenues for 2020 and 2021 to determine the actual amounts that should have been reported. The lost revenues for 2020 and 2021 will be updated in the next available reporting period where Portal submissions are permitted. Management believes that this measure will assure that there are no further errors in future reporting.

The Organization agrees with the finding and the following additional internal control procedure has been adopted into our internal control procedures: ?The Controller and the Chief Financial Officer will review guidelines for any federal awards or other assistance received. Additionally, both the Controller and Chief Financial Officer will review and signoff on any supporting calculations and data submission requested by the awarding agency (or designate) prior to final submission? for accuracy and consistency with published guidelines.? While there were no questioned costs because allowable expenditures and lost revenues exceeded the awards received, the Organization understands the importance of proper reporting. The Organization has assigned Jacqueline Price, Chief Financial Officer, to update the HRSA Portal with the corrected information at the next available filing window the Portal is open for reporting anticipated to be completed no later than March 31, 2023. Additionally, Jacqueline Price will monitor to ensure compliance with this recommendation. If there are any questions regarding this plan, please contact Jacqueline Price at (813) 675-2339.