Finding 2022-001 Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution CFDA #93.498 Finding Summary: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The Organization did have two individuals involved in the reporting process, but did not have documented controls over the preparation and corresponding review of the required reporting during the period. Responsible Individuals: Donna Cordova, CFO and Cletus Thiebeau CEO Corrective Action Plan: VALLEYLIFE will add documentation in its Accounting & Finance Policies and Procedures that Federal Grant reporting will be reviewed, prior to submission to the federal granting agency, by the Supervisor of the individual preparing the reports. Anticipated Completion Date: This process will go into effect immediately and will be presented to the Finance Committee of the Board of Directors for approval at its March 2023 meeting as the VALLEYLIFE bylaws require.