Audit 49812

CareFlite SCHEDULE OF FINDINGS AND QUESTIONED COSTS - CONTINUED September 30, 2022 31 SECTION II - FINANCIAL STATEMENT FINDINGS No matters reported. SECTION III - FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS Finding: 2022-001 Federal Agency: Department of Health and Human Services Federal Program: Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Award Number: 93.498 Award Year: 2022 Type of Finding: Control Deficiency and Noncompliance Compliance Requirement: Reporting Criteria: Per the 2022 Compliance Supplement Part III Subpart L, suggested audit procedures to test for accuracy and completeness of financial reports includes `review accounting records and ascertain if all applicable accounts were included in the sampled reports?. Condition: The revenue detail used to obtain quarterly actual revenues for the PRF report did not include the correct parameters to ensure subsequent revenue adjustments were included in the correct quarter. These revenue amounts are used to calculate lost revenue per quarter to support the acceptance of the PRF funds. Questioned None Context: The detail of revenues used to calculate the revenue amount on the PRF for the quarters in fiscal years 2019 and 2020 differed from the audited amount for those quarters, and was therefore deemed not complete and accurate. However, we noted that lost revenue calculation with the correct amounts exceeded the amount of PRF funds accepted those quarters. Thus, no allowability issues were noted. Cause: Management did not perform a thorough review of the PRF report to ensure quarterly revenue amounts used were complete and accurate and agreed to fiscal 2019 and 2020 quarters. Effect or potential effect: Incomplete financial reports could result in inaccurate revenue amounts being submitted. Repeat Finding: No Recommendations: We recommend that management ensure controls are in place to ensure review of reports submitted are performed and information included in reports are complete and accurate. Views of responsible officials: Management agrees that the reports used to run the revenue detail per quarter did not include the correct parameters to ensure subsequent revenue adjustments were included in the correct quarter. Controls have been put in place to ensure reports are run with correct parameters and are reviewed prior to being submitted to granting agency.

CareFlite SCHEDULE OF FINDINGS AND QUESTIONED COSTS - CONTINUED September 30, 2022 31 SECTION II - FINANCIAL STATEMENT FINDINGS No matters reported. SECTION III - FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS Finding: 2022-001 Federal Agency: Department of Health and Human Services Federal Program: Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Award Number: 93.498 Award Year: 2022 Type of Finding: Control Deficiency and Noncompliance Compliance Requirement: Reporting Criteria: Per the 2022 Compliance Supplement Part III Subpart L, suggested audit procedures to test for accuracy and completeness of financial reports includes `review accounting records and ascertain if all applicable accounts were included in the sampled reports?. Condition: The revenue detail used to obtain quarterly actual revenues for the PRF report did not include the correct parameters to ensure subsequent revenue adjustments were included in the correct quarter. These revenue amounts are used to calculate lost revenue per quarter to support the acceptance of the PRF funds. Questioned None Context: The detail of revenues used to calculate the revenue amount on the PRF for the quarters in fiscal years 2019 and 2020 differed from the audited amount for those quarters, and was therefore deemed not complete and accurate. However, we noted that lost revenue calculation with the correct amounts exceeded the amount of PRF funds accepted those quarters. Thus, no allowability issues were noted. Cause: Management did not perform a thorough review of the PRF report to ensure quarterly revenue amounts used were complete and accurate and agreed to fiscal 2019 and 2020 quarters. Effect or potential effect: Incomplete financial reports could result in inaccurate revenue amounts being submitted. Repeat Finding: No Recommendations: We recommend that management ensure controls are in place to ensure review of reports submitted are performed and information included in reports are complete and accurate. Views of responsible officials: Management agrees that the reports used to run the revenue detail per quarter did not include the correct parameters to ensure subsequent revenue adjustments were included in the correct quarter. Controls have been put in place to ensure reports are run with correct parameters and are reviewed prior to being submitted to granting agency.

CareFlite SCHEDULE OF FINDINGS AND QUESTIONED COSTS - CONTINUED September 30, 2022 31 SECTION II - FINANCIAL STATEMENT FINDINGS No matters reported. SECTION III - FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS Finding: 2022-001 Federal Agency: Department of Health and Human Services Federal Program: Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Award Number: 93.498 Award Year: 2022 Type of Finding: Control Deficiency and Noncompliance Compliance Requirement: Reporting Criteria: Per the 2022 Compliance Supplement Part III Subpart L, suggested audit procedures to test for accuracy and completeness of financial reports includes `review accounting records and ascertain if all applicable accounts were included in the sampled reports?. Condition: The revenue detail used to obtain quarterly actual revenues for the PRF report did not include the correct parameters to ensure subsequent revenue adjustments were included in the correct quarter. These revenue amounts are used to calculate lost revenue per quarter to support the acceptance of the PRF funds. Questioned None Context: The detail of revenues used to calculate the revenue amount on the PRF for the quarters in fiscal years 2019 and 2020 differed from the audited amount for those quarters, and was therefore deemed not complete and accurate. However, we noted that lost revenue calculation with the correct amounts exceeded the amount of PRF funds accepted those quarters. Thus, no allowability issues were noted. Cause: Management did not perform a thorough review of the PRF report to ensure quarterly revenue amounts used were complete and accurate and agreed to fiscal 2019 and 2020 quarters. Effect or potential effect: Incomplete financial reports could result in inaccurate revenue amounts being submitted. Repeat Finding: No Recommendations: We recommend that management ensure controls are in place to ensure review of reports submitted are performed and information included in reports are complete and accurate. Views of responsible officials: Management agrees that the reports used to run the revenue detail per quarter did not include the correct parameters to ensure subsequent revenue adjustments were included in the correct quarter. Controls have been put in place to ensure reports are run with correct parameters and are reviewed prior to being submitted to granting agency.

CareFlite SCHEDULE OF FINDINGS AND QUESTIONED COSTS - CONTINUED September 30, 2022 31 SECTION II - FINANCIAL STATEMENT FINDINGS No matters reported. SECTION III - FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS Finding: 2022-001 Federal Agency: Department of Health and Human Services Federal Program: Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Award Number: 93.498 Award Year: 2022 Type of Finding: Control Deficiency and Noncompliance Compliance Requirement: Reporting Criteria: Per the 2022 Compliance Supplement Part III Subpart L, suggested audit procedures to test for accuracy and completeness of financial reports includes `review accounting records and ascertain if all applicable accounts were included in the sampled reports?. Condition: The revenue detail used to obtain quarterly actual revenues for the PRF report did not include the correct parameters to ensure subsequent revenue adjustments were included in the correct quarter. These revenue amounts are used to calculate lost revenue per quarter to support the acceptance of the PRF funds. Questioned None Context: The detail of revenues used to calculate the revenue amount on the PRF for the quarters in fiscal years 2019 and 2020 differed from the audited amount for those quarters, and was therefore deemed not complete and accurate. However, we noted that lost revenue calculation with the correct amounts exceeded the amount of PRF funds accepted those quarters. Thus, no allowability issues were noted. Cause: Management did not perform a thorough review of the PRF report to ensure quarterly revenue amounts used were complete and accurate and agreed to fiscal 2019 and 2020 quarters. Effect or potential effect: Incomplete financial reports could result in inaccurate revenue amounts being submitted. Repeat Finding: No Recommendations: We recommend that management ensure controls are in place to ensure review of reports submitted are performed and information included in reports are complete and accurate. Views of responsible officials: Management agrees that the reports used to run the revenue detail per quarter did not include the correct parameters to ensure subsequent revenue adjustments were included in the correct quarter. Controls have been put in place to ensure reports are run with correct parameters and are reviewed prior to being submitted to granting agency.