CORRECTIVE ACTION PLAN U.S. Department of Health & Human Services: Finger Lakes Regional Health System, Inc. (the System) respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Bonadio & Co., LLP 171 Sully?s Trail Pittsford, New York 14534 Audit period: January 1, 2022 ? December 31, 2022 The findings from the 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS ? MAJOR FEDERAL AWARD PROGRAM SIGNIFICANT DEFICIENCY 2022-001 Assistance Listing No. 84.425 ?COVID-19 Education Stabilization Fund Recommendation: Our auditors noted that competitive bidding procurement requirements for HEERF awards were not met and competitive bids were not obtained for the School of Nursing project funded by HEERF. While the System worked collaboratively with the general contractor in the selection of subcontractors for the capital projects, competitive proposals were not obtained for the general contractor in accordance with the requirements of the Uniform Guidance procedure standards. While the System did review and select subcontractors with input from the general contractor, the System?s process for bidding relative to the subcontractors, including the final review and engagement of the subcontractors was not documented. Our auditors recommended that the System establish a formal documented procurement policy to meet federal compliance requirements. Action Taken: Management has established a grant funding committee that is establishing written procurement procedures and documentation requirements for transactions including acquisition of property or services to ensure competitive bidding is obtained when required by federal funders. Trisha Koczent, CFO is responsible for implementing this plan and can be reached at (315) 787-4000.