Audit 344160

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-002 Late Submission of Reporting Package and Data Collection Form FINDING TYPE Noncompliance of Reporting AGENCY U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services ALN 14.218 Community Development Block Grants/Entitlement Grants 14.267 Continuum of Care Program 93.958 Block Grants for Prevention and Treatment of Substance Abuse 93.778 Medical Assistance Program CRITERIA The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. CONDITION AND CONTEXT The Federal reporting deadline for the June 30, 2023 Single Audit Reporting Package was March 31, 2024; however, RHD did not submit its Single Audit Reporting Package until July 10, 2024. This finding was initially reported as part of the June 30, 2023 audit reporting package. Because the late submission was due during the year ended June 30, 2024, it is deemed to impact compliance for the year ended June 30, 2024 as well so it is being reported again. CAUSE With over 160 different governmental contracts, management has been tasked with significant reporting and audit requirements. In addition, due to financial conditions disclosed in note 3 to the financial statements, resources normally committed to the completion of the audit were utilized for financial analyses and treasury management which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2023 audit. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by RHD. REPEAT FINDING Yes. RECOMMENDATION We recommend that RHD improve its financial reporting processes, including timely closing of the general ledger, so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-004 Special Tests and Provisions – Application of Sliding Fees FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 42 USC 254b(k)(3)(E), (F), and (G); 42 CFR sections 51c.303(e), (f), and (g); and 42 CFR sections 56.303(e), (f), and (g) 2 CFR 200.302 (b)(3), health centers must prepare and apply a sliding fee discount schedule (SFDS) so that amounts owed for health center services by eligible patients are adjusted (discounted) based on the patient’s ability to pay. CONDITION AND CONTEXT During the year ended June 30, 2024, out of a sample of 40 transactions, we noted 12 instances where the sliding fee discount was either incorrectly calculated or not applied. In addition, we noted 4 items for which documentation supporting the fee was not available. The known error in the sample was $725 and the projected total error was $4,169. CAUSE Given the volume of patients served by the health center program, there were instances where the staff made errors in the application of the SFDS. EFFECT OR POTENTIAL EFFECT The organization was not consistently in compliance with the SFDS requirements of the health center program. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a review of its SFDS protocols and adjust processes and retrain staff to ensure consistent application of the SFDS. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

FINDING 2024-005 Procurement – Documentation FINDING TYPE Significant Deficiency in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.318(i), entities receiving federal funds are responsible for maintaining records that contain sufficient detail of the history of each procurement transaction. These records must include the rationale for the procurement method, contract type selection, contractors selection or rejections, and the basis for the contract price. CONDITION AND CONTEXT We selected four procurements for testing. Out of these four, we noted one instance where the documentation of the rationale behind the vendor selection was not available. Management was able to explain to us why the vendor offered an appropriate mix of price and value to the Federal program, but the documentation of the decision was not able to be presented. Also, for one out of four tested items, a record of the initial debarment/suspension check was not able to be produced. Management was able to show us a master vendor database compliance screening that was run after this vendor had been selected. However, documentation of the initial check was not available. CAUSE The staff involved with these procurement decisions did not have a consistent process for maintaining documentation related to procurement decisions. EFFECT OR POTENTIAL EFFECT Without consistent documentation, there is a risk that procurement decisions will not be in compliance with the procurement requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization reinforce to all personnel involved in procurement the importance of maintaining the required documentation for procurement decisions. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.