Walter Knox Memorial Hospital doing business as Valor HealthLocal Government

2023-001 Policies and Procedures for Federal Awards Federal Agency U.S. Department of Health and Human Services Federal Assistance Listing Numbers 93.498 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria [ ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Recipients of federal awards should maintain written policies and procedures for the tracking and usage of federal awards. Condition The Hospital did not have written procurement policies and procedures with all of the required elements for federal awards for the year ended September 30, 2023. Context This finding appears to be a systemic problem. Cause Management is still developing and implementing internal controls as of September 30, 2023. Effect There is a risk that federal funds may be expended out of conformity with federal regulations and compliance requirements. Recommendation We recommend the Hospital write policies and procedures for the tracking and usage of federal awards that conform to federal regulations and compliance requirements. Views of responsible officials and planned corrective actions Valor Health completed a policy and procedure in FY23 to satisfy the previous year’s finding, and with this year’s audit it was discovered that additional details and procedures need to be included and outlined. Valor Health will work in collaboration with auditing firm to improve the current policy and procedures to include all the details and items necessary to satisfy this requirement. Auditing firm will supply samples and documents and ensure that we are compliant with this particular finding in the appropriate timeframes. The responsible parties from Valor Health will be the CFO and Controller.

2022-001 Policies and Procedures for Federal Awards Federal Agency U.S. Department of Homeland Security U.S. Department of Treasury Federal Assistance Listing Numbers 97.036 ? Disaster Grants-Public Assistance 21.019 ? Coronavirus Relief Fund Criteria [ ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Recipients of federal awards should maintain written policies and procedures for the tracking and usage of federal awards. Condition The Hospital did not have written procurement policies and procedures with all of the required elements for federal awards for the year ended September 30, 2022. Context This finding appears to be a systemic problem. Cause Management is still developing and implementing internal controls as of September 30, 2022. Effect There is a risk that federal funds may be expended out of conformity with federal regulations and compliance requirements. Recommendation We recommend the Hospital write policies and procedures for the tracking and usage of federal awards that conform to federal regulations and compliance requirements. Views of responsible officials and planned corrective actions We did not have a written policy and procedure in place for fiscal year end related to the tracking and usage of federal awards. We have had in place for several years a committee that meets monthly to review grant applications, the acceptance of grant funds, and the usage of those funds and submissions, we however never put this into a formal written policy. We will be putting into a written format a policy and procedure for the tracking and usage of federal awards that reflects the work we?ve already been doing for several years in this area.