Rimrock Foundation

2022-004 – Department of Health and Human Services CFDA #93.829 Section 223 Demonstration Programs to Improve Community Health Services (CCBHC) Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance, and Reporting Material Weakness in Internal Control over Compliance Criteria – 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 entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition – Rimrock Foundation’s final expenditures identified as eligible and claimed under the federal program were reviewed and approved by separate individuals outside of the preparer. However, the expense submissions for reimbursement had no evidence of review and approval by a separate individual outside of the preparer. Rimrock Foundation’s statistical reports submitted under the federal program had no evidence of review and approval by a separate individual outside of the preparer. Cause – Rimrock Foundation has multiple individuals identifying and compiling eligible costs and statistics, however, Rimrock Foundation did not have an internal control process in place to ensure evidence of a secondary review and approval of eligible expenditures and statistical data that were summarized from the underlying supporting spreadsheets to the final expenditure listing and the final statistical reports. The final expenditure listing was used to claim allowable costs under the federal program. The review and approval of the final expenditure listing and the statistical reports submitted to the Substance Abuse and Mental Health Services Administration was not performed by someone other than the preparer of the report. Effect – Without a secondary review and approval, there is a possibility that ineligible expenditures may be claimed under the program and the reports of statistical data may not be accurately completed. Questioned Costs – None reported. Context/Sampling – A nonstatistical sample of 60 expenditures was selected, from reports submitted to the Substance Abuse and Mental Health Services Administration, for testing of payroll, supplies, and equipment for activities allowed and unallowed and allowable costs/cost principles. The 20 statistical reports and forms submitted to the Substance Abuse and Mental Health Services Administration were all tested for internal controls and compliance. Repeat Finding from Prior Year – Yes. Recommendation – While we recognize that this condition is not unusual for an organization with limited staffing, it is important that Rimrock Foundation is aware of this condition for financial reporting purposes. Management and the board of directors should continually be aware of the financial accounting and reporting of Rimrock Foundation and any changes in the accounting and reporting requirements. We recommend a review and approval process which is documented in writing, by someone other than the preparer, of any reimbursement requests or any statistical reports submitted to the Substance Abuse and Mental Health Services Administration. Views of Responsible Officials – Management agrees with the finding.

2022-004 - Year Ended December 31, 2022 Department of Health and Human Services CFDA #93.829 Section 223 Demonstration Programs to Improve Community Health Services (CCBHC) Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Reporting Material Weakness in Internal Control over Compliance Finding Summa,y: - Rimrock Foundation's final expenditures identified as eligible and claimed under the federal program were reviewed and approved by separate individuals outside of the preparer. However, the reports submitted for reimbursement had no evidence of review and approval by a separate individual outside of the preparer. Rimrock Foundation's statistical reports submitted under the federal program also had no evidence of review and approval by a separate individual outside of the preparer. Responsible Individuals: Jeffrey Keller, CEO and Shirley Ehlang, Lead Financial Accountant Corrective Action Plan: Rimrock will have the statistical reports prepared by the Grant Financial Specialist and reviewed by the Lead Financial Account. The payment will be requested by the Lead Financial Accountant and the CFO or CEO will review the entire packet of documentation. Completion Date: December 2022

2021-004

2021-004 ? Department of Health and Human Services CFDA #93.829 Section 223 Demonstration Programs to Improve Community Health Services (CCBHC) Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Reporting Material Weakness in Internal Control over Compliance Criteria ? 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 entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition ? Rimrock Foundation?s final expenditures identified as eligible and claimed under the federal program were reviewed and approved by separate individuals outside of the preparer. However, the reports submitted for reimbursement had no evidence of review and approval by a separate individual outside of the preparer. Rimrock Foundation?s statistical reports submitted under the federal program had no evidence of review and approval by a separate individual outside of the preparer. Cause ? Rimrock Foundation has multiple individuals identifying and compiling eligible costs and statistics, however, Rimrock Foundation did not have an internal control process in place to ensure evidence of a secondary review and approval of eligible expenditures and statistical data that were summarized from the underlying supporting spreadsheets to the final expenditure listing and the final statistical reports. The final expenditure listing was used to claim allowable costs under the federal program. The review and approval of the final expenditure listing and the statistical reports submitted to the Substance Abuse and Mental Health Services Administration was not performed by someone other than the preparer of the report. Effect ? Without a secondary review and approval, there is a possibility that ineligible expenditures may be claimed under the program and the reports of statistical data may not be accurately completed. Questioned Costs ? None reported. Context/Sampling ? A nonstatistical sample of 60 expenditures was selected, from reports submitted to the Substance Abuse and Mental Health Services Administration, for testing of payroll, supplies, and equipment for activities allowed and unallowed and allowable costs/cost principles. The 20 statistical reports and forms submitted to the Substance Abuse and Mental Health Services Administration were all tested for internal controls and compliance. Repeat Finding from Prior Year ? No. Recommendation ? While we recognize that this condition is not unusual for an organization with limited staffing, it is important that Rimrock Foundation is aware of this condition for financial reporting purposes. Management and the board of directors should continually be aware of the financial accounting and reporting of Rimrock Foundation and any changes in the accounting and reporting requirements. We recommend a review and approval process which is documented in writing, by someone other than the preparer, of any reimbursement requests or any statistical reports submitted to the Substance Abuse and Mental Health Services Administration. Views of Responsible Officials ? Management agrees with the finding.

2021-004 ? Year Ended December 31, 2021 Department of Health and Human Services CFDA #93.829 Section 223 Demonstration Programs to Improve Community Health Services (CCBHC) Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Reporting Material Weakness in Internal Control over Compliance Finding Summary: ? Rimrock Foundation?s final expenditures identified as eligible and claimed under the federal program were reviewed and approved by separate individuals outside of the preparer. However, the reports submitted for reimbursement had no evidence of review and approval by a separate individual outside of the preparer. Rimrock Foundation?s statistical reports submitted under the federal program also had no evidence of review and approval by a separate individual outside of the preparer. Responsible Individuals: Burke Kufeld, Chief Financial Officer Corrective Action Plan: Rimrock Foundation will change the current process to include review and approval by individual at Senior Level (C.E.O. or C.F.O.) before submission. Anticipated Completion Date: December 31, 2022