Material Weakness Finding: 2025-002 Cash Management – Federal Grants Federal Programs: Department of Health and Human Services Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement Assistance Listing No. 93.912 Criteria: Cash Management, 2 CFR 200.305(b)(1) Condition: The Organization did not reconcile federal grant expenditures in a timely manner, resulting in a lack of draws of federal funds for which qualifying expenditures had been made prior to the end of the Organization’s financial statement year end. This resulted in unrecorded revenue and receivables of approximately $224,564 at March 31, 2025. Without proper reconciliations and timely draws of federal grant funds, the Organization could be impacted by lost federal funding. Cause: The Organization did not reconcile federal grant expenditures or make federal grant draws in a timely manner. Effect: The Organization failed to properly recognize federal grant revenue and receivables of $224,564. Questioned Costs: None Context/Sampling: Not applicable. Repeat Finding from Prior Year: No Recommendation: The Organization should ensure that qualifying expenditures are reconciled, recorded in the Organization’s financial statements, and drawn from the Payment Management System in a timely manner. Views of Responsible Officials: The Organization understands the importance of timely reconciliations of federal grant expenditures and timely draws of federal grant funds. The Organization will review its processes and procedures to ensure that federal grants are reconciled in a timely manner. Contact Person: Brian Morton, CFO Anticipated Date of Completion: November 30, 2025