COMMUNITY BRIDGES, INC

Item: 2025-001 Assistance Listing Number: 21.027 Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Agencies: City of Phoenix, Arizona Department of Economic Security Contract Numbers: CTR062832; 157666-005; 163621-0; 159341 Award Year: October 1, 2024 – September 30, 2025 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit periodic financial and programmatic reports for each contract within certain prescribed timeframes. Documentation should be maintained to support that the reports required were submitted to the granting agencies and that the submissions were submitted timely. Condition: In a nonstatistical sample of 14 financial reports and 40 programmatic reports, we noted one financial report and seven programmatic reports were not submitted to the granting agency within the prescribed reporting deadlines. Questioned Costs: N/A Context: In a population of 136 financial reports and over 250 programmatic reports, we conducted a nonstatistical sample resulting in 14 financial reports and 40 programmatic reports being selected for testing. Of the 14 financial reports and 40 programmatic reports selected for testing, we noted one financial report and seven programmatic reports were not submitted to the granting agency within the prescribed reporting deadlines. Effect: Untimely reporting can increase the risk that the pass-through entity and federal agency did not have timely information to monitor grant performance and cash needs, and could lead to delayed reimbursements, questioned costs, or other administrative actions. Late reporting also impairs management’s ability to make informed decisions, weakens accountability over federal funds, and may adversely affect the entity’s eligibility for future funding or impose additional oversight by the awarding agency. This is deemed to be a material weakness in internal control over compliance. Cause: The delays occurred due to insufficient internal controls over the reporting process, including lack of a centralized compliance calendar with established internal due dates, and inadequate supervisory review to ensure completeness and timeliness. Identification as a Repeat Finding: Repeat finding. See 2024-002. Recommendation: Management should strengthen the reporting control environment by assigning clear ownership for each required report, establishing written procedures that include a centralized compliance calendar with internal due dates prior to the federal deadlines, and implementing automated reminders and supervisory review checkpoints. The Organization should also provide periodic training on federal and pass-through reporting requirements, ensure cross-training to mitigate the impact of turnover, and perform a retrospective review to identify and remediate bottlenecks in the report preparation and approval process. Policies and procedures should also be updated to reflect these controls, and management should monitor compliance with the new process and report results to governance. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

Item: 2025-002 Assistance Listing Number: 93.788 Program: Opioid STR Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Mercy Care Contract Numbers: YH22-0061R-01 Award Year: October 1, 2024 – September 30, 2025 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit periodic financial reports for each contract within certain prescribed timeframes. Documentation should be maintained to support that the reports required were submitted to the granting agencies and that the submissions were submitted timely. Condition: In a nonstatistical sample of 9 financial reports, we noted one financial report was not submitted to the granting agency within the prescribed reporting deadlines. Questioned Costs: N/A Context: In a population of 84 financial reports, we conducted a nonstatistical sample resulting in 9 financial reports being selected for testing. Of the 9 financial reports selected for testing, we noted one financial report was not submitted to the granting agency within the prescribed reporting deadlines. Effect: Untimely reporting can increase the risk that the pass-through entity and federal agency did not have timely information to monitor grant performance and cash needs, and could lead to delayed reimbursements, questioned costs, or other administrative actions. Late reporting also impairs management’s ability to make informed decisions, weakens accountability over federal funds, and may adversely affect the entity’s eligibility for future funding or impose additional oversight by the awarding agency. This is deemed to be a material weakness in internal control over compliance. Cause: The delays occurred due to insufficient internal controls over the reporting process, including lack of a centralized compliance calendar with established internal due dates, and inadequate supervisory review to ensure completeness and timeliness. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend strengthening the reporting control environment by assigning clear ownership for each required report, establishing written procedures that include a centralized compliance calendar with internal due dates prior to the federal deadlines, and implementing automated reminders and supervisory review checkpoints. The Organization should also provide periodic training on federal and pass-through reporting requirements, ensure cross-training to mitigate the impact of turnover, and perform a retrospective review to identify and remediate bottlenecks in the report preparation and approval process. Policies and procedures should also be updated to reflect these controls, and management should monitor compliance with the new process and report results to governance. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

Item: 2025-003 Assistance Listing Number: 93.958 Program: Block Grants for Community Mental Health Services Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Complete Health - North (Care1st) Contract Numbers: Unknown Award Year: October 1, 2024 – September 30, 2025 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit periodic financial and programmatic reports for each contract within certain prescribed timeframes. Documentation should be maintained to support that the reports required were submitted to the granting agencies and that the submissions were submitted timely. Condition: In a nonstatistical sample of 7 programmatic reports, we noted 5 programmatic reports were not submitted to the granting agency within the prescribed reporting deadlines. Additionally, we noted that the Organization was not able to provide documentation supporting that one report was completed and submitted to the granting agency. Questioned Costs: N/A Context: In a population of 74 programmatic reports, we conducted a nonstatistical sample resulting in 7 programmatic reports being selected for testing. Of the 7 programmatic reports selected for testing, we noted 5 programmatic reports were not submitted to the granting agency within the prescribed reporting deadlines. Additionally, we noted that the Organization was not able to provide documentation supporting that one report was completed and submitted to the granting agency. Effect: Untimely reporting can increase the risk that the pass-through entity and federal agency did not have timely information to monitor grant performance and cash needs, and could lead to delayed reimbursements, questioned costs, or other administrative actions. Late reporting also impairs management’s ability to make informed decisions, weakens accountability over federal funds, and may adversely affect the entity’s eligibility for future funding or impose additional oversight by the awarding agency. This is deemed to be a material weakness in internal control over compliance. Cause: The delays and omission occurred due to insufficient internal controls over the reporting process, including lack of a centralized compliance calendar with established internal due dates, and inadequate supervisory review to ensure completeness and timeliness. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend management determine if the one missing report had been completed and submitted to the granting agency. Additionally, management should strengthen the reporting control environment by assigning clear ownership for each required report, establishing written procedures that include a centralized compliance calendar with internal due dates prior to the federal deadlines, and implementing automated reminders and supervisory review checkpoints. The Organization should also provide periodic training on federal and pass-through reporting requirements, ensure cross-training to mitigate the impact of turnover, and perform a retrospective review to identify and remediate bottlenecks in the report preparation and approval process. Policies and procedures should also be updated to reflect these controls, and management should monitor compliance with the new process and report results to governance. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

Item: 2024-001 Assistance Listing Number: 93.243 Program: Substance Abuse and Mental Health Services, Projects of Regional and National Significance Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: N/A Contract Number: 5H79TI082775-02 Award Year: 9/30/2023 – 9/29/2024 Compliance Requirement: Cash Management, Reporting Criteria: Per 2 CFR 200.305, under the reimbursement method, expenditures must be incurred prior to the date of the reimbursement request. The Organization is also responsible for submitting an annual Federal Financial Report (“FFR” or SF-425) to the U.S. Department of Health and Human Services, Substance Abuse and Mental Health Services Administration. Condition: The Organization erroneously included a duplicate request for reimbursement in a monthly reimbursement request report submitted to the granting agency and was overpaid by the amount of this duplicate request for reimbursement totaling $41,042. Additionally, the total expenditures reported in the FFR/SF-425 were misstated by $23,058. Questioned Costs: $41,042 Context: In our testing of the annual FFR/SF-425, we noted that the total expenditures reported did not agree to the expenditures reported on the Schedule of Expenditures of Federal Awards by $23,058. Upon further investigation and review of each monthly request for reimbursement submitted for fiscal 2024, we noted a duplicate reimbursement request totaling $41,042. Additionally, we noted that $17,984 representing an expense accrual at September 30, 2024, while properly reflected on the Schedule of Expenditures of Federal Awards, was not properly included in the detail of expenditures noted in the FFR/SF-425 for fiscal 2024. As a result, the FFR/SF-425 misreported expenditures by $23,058, the net of the two errors noted above. Effect: The duplicate federal draw request resulted in a duplicate payment from the grantor. Thus, the Organization has drawn federal funds in excess of the federal expenditures incurred totaling $41,042, which is reported as a questioned cost as the overpayment is due back to the granting agency. Additionally, the expenditures reported on the FFR/SF-425 for fiscal 2024 were misstated by $23,058. This is deemed to be a material weakness in internal control over compliance. Cause: Review and approval controls of the monthly reimbursement request and the annual FFR/SF-425 report were not operating effectively. Identification as a Repeat Finding: Not a repeat finding Recommendation: The Organization should ensure monthly requests for reimbursement and reviewed and approved prior to submission. Additionally, the annual FFR/SF-425 should be reviewed and reconciled to the monthly draws. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

Item: 2024-002 Assistance Listing Number: 21.027 Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of the Treasury Pass-Through Agencies: Maricopa County, City of Phoenix Contract Numbers: C-22-20-029-3-12, 220141; 157666-005, 159341-0 , 160315-0 Award Year: 10/1/2023 – 9/30/2024 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit monthly program reports for each contract within certain prescribed timeframes. Documentation should be maintained to support that the required reports were submitted to the granting agencies and that the submissions were timely. Condition: For seven reports tested, there was no documentation supporting that the reports were submitted to the granting agencies. Questioned Costs: N/A Context: In a population of 160 monthly program reports, we conducted a non-statistical sample of twenty-four reports. For seven of the 24 reports tested, we noted no evidence of documentation to support submission of the required reports to the granting agencies. However, subsequently, the Organization was able to obtain confirmation/verification from the granting agencies that the reports were submitted and were submitted timely. Effect: The system of internal controls was not properly implemented to ensure documentation supporting the submission of required reports to the granting agencies was maintained. This is considered to be a material weakness in internal control over compliance. Cause: Controls to ensure documentation supporting the submission of required reports to the granting agencies was maintained were not operating effectively. Identification as a Repeat Finding: Not a repeat finding Recommendation: The Organization should enhance its existing controls to ensure documentation of submission of monthly program reporting to granting agencies is maintained. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

Item: 2024-003 Assistance Listing Number: 16.812 Program: Second Chance Act Reentry Initiative Federal Agency: U.S. Department of Justice Pass-Through Agency: Pima County Contract Number: CT-BH-21-378 Award Year: 10/01/2023 – 9/30/2024 Compliance Requirement: Reporting Criteria: In accordance with the grant agreement, the Organization is required to submit monthly reports to the grantor within 10 days following the end of each month. Condition: For all 4 of the monthly reports tested, the reports were submitted subsequent to the 10th day following the end of each respective month. Questioned Costs: N/A Context: In a population of 12 monthly reports, we conducted a non-statistical sample of 4 reports. For all 4 reports tested, we noted the reports were submitted subsequent to the 10th day following the end of each respective month. Effect: The system of internal controls was not properly implemented to ensure review, approval and submission of reports in a timely manner. This is deemed to be a material weakness in internal control over compliance. Cause: Review and approval controls of the monthly reports were not operating timely or effectively. Identification as a Repeat Finding: Not a repeat finding Recommendation: The Organization should ensure monthly reports are reviewed and approved in a timely manner to ensure grant reporting deadlines are met. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

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