VARR agrees with the finding and as VARR grows, it will seek opportunities beginning November 27, 2023 to delegate responsibilities to qualified individuals to provide a greater level of segregation of duties that will enhance our internal control. We also believe that our integrity and relationship with the Virginia Department of Behavioral Health Development Services and our recovery community centers provide an external layer of control that when tied into our software system known as REC-CAP will alert management when an error occurs. We expect that we will enhance the development of our systems to capture and provide for the seamless integration of this finding by
January 31, 2024. This action is in accordance with the requirements of Uniform Guidance 2 CFR §200.511(c).