CommQuest Services Inc and SubsidiariesNon-Profit

Finding 2022-001 Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Provider Relief Fund Assistance Listing Number: 93.498 Federal Award Identification Number and Year: N/A - 2022 Award Period: July 1, 2020 ? December 31, 2020 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Compliance Requirement: Reporting Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: Management submitted the report required by the Department of Health and Human Services (HHS) using actual expenditures versus using the intended lost revenue calculation. Questioned costs: None Context: The Organization's internal controls over compliance related to reporting were not effective. Management erroneously submitted the report using mortgage expenditures rather than using the intended lost revenue calculation. Cause: Management oversight Effect: The Organization's internal controls around reporting were not effective causing management to erroneously report to HHS. Repeat Finding: N/A Recommendation: We recommend that management request that HHS re-open the portal so as to resubmit based on the lost revenue calculation versus based on the original reporting method which used expenditures as a basis. If unable to re-open the portal, verify for next submission to HHS, if applicable, that the organization submits report based on the lost revenue calculation. We also recommend that a review take place over this reporting submission.Views of responsible officials and planned corrective actions: Management agreed with the above finding and attempted to re-open the HHS portal to accurately report based on the lost revenue calculation, but given the timing of the request, were denied by HHS. The Organization?s lost revenue calculation exceeds the Provider Relief Funds received. The error in the report was due to management?s misunderstanding of the instructions that expenditures needed to be reported, when no expenditures at all should have been reported in order for the lost revenue calculation portion of the portal to populate.

2019-001 Account Reconciliations Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Condition: The Organization does not have an adequate monthly or annual closing process in place to appropriately reconcile accounts on a timely basis. Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP and that each area of the statement of financial position and statement of activities are appropriately and timely reconciled to the underlying sub-ledgers and supporting schedules. Context: While performing audit procedures, it was noted that management does not have internal controls in place to provide reasonable assurance that financial statements are closed timely on a monthly or annual basis, and that accounts are accurately reconciled in accordance with U.S. GAAP financial reporting. We noted through testing that several statement of financial position and statement of activities accounts held discrepancies between support obtained and balances presented on the trial balance which ultimately resulted in the recommendation of adjusting journal entries. Cause: The Organization has not adopted a process for timely and accurately reconciling all accounts and fully closing the books of the Organization at the end of each reporting period. Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected. Recommendation: We recommend reconciling all accounts at each month-end, and having the reconciliations reviewed timely by an appropriate individual, other than the preparer, to ensure reconciliations are accurate and complete. Views of responsible officials and planned corrective actions: Management understands the importance of appropriately and timely reconciling each account, and has implemented a stronger monthly and annual closing process to ensure all U.S. GAAP financial reporting reconciles to the underlying sub-ledgers and supporting schedules.

2019-002 Grant Reporting Federal agency: Department of Health and Human Services Federal program title: Block Grants for Prevention and Treatment of Substance Abuse CFDA Number: 93.959 Award Period: Fiscal Year 2019 Type of Finding: Significant Deficiency in Internal Control over Compliance; Other Matter Criteria or specific requirement: All required reports should be submitted to the grantor by their due date unless the Organization receives an extension to file. Condition: During our testing, we noted CommQuest did not have adequate internal controls designed to ensure all required compliance reports were submitted timely. Of the 15 reports selected for testing, 4 were submitted to StarkMHAR after the due date. Questioned costs: None Context: There were 15 reports tested in connection with reporting testing. There were 4 instances in the sample selected where reports were submitted to StarkMHAR after the due date. All reports filed did contain the appropriate and necessary information. Cause: CommQuest did not have proper controls in place to ensure all required reports were filed timely. During the year ended June 30, 2019 the Organization went through transitions in management positions which ultimately led to late reporting. Once current management was adequately informed of the reporting requirements, reports were submitted timely and with the appropriate and necessary information. Effect: The lack of controls in place to ensure timely reporting increases the risk of misstatements, fraud, or errors occurring related to the reporting of federal funds. Repeat Finding: No. Recommendation: We recommend all required report submissions be included in each month end financial closing checklist. This will serve as a reminder for the management team's timely submission. Views of responsible officials: There is no disagreement with the audit finding.

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