Audit 353523

2022-004 - Strengthen SEFA Preparation and Performance Reporting Compliance Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Reporting Criteria: Effective grant management requires accurate financial and performance reporting, supported by strong internal controls to ensure compliance with federal regulations. The Schedule of Expenditures of Federal Awards (SEFA) must be complete, accurate, and aligned with grant agreements and accounting records, as it determines major program selection in the Single Audit. Performance reports should be consistent with supporting records to meet federal grant requirements and demonstrate compliance. Condition: Our audit identified opportunities to improve SEFA preparation and performance reporting to enhance accuracy, compliance, and efficiency. 1. SEFA Preparation-The SEFA required multiple revisions due to inaccuracies, including misaligned grant period dates, incorrect pass-through entity numbers, and errors in contract details for SAMHSA and SOR grants. Non-federal awards were mistakenly included, and expenditure totals for SOR contracts 2200648 and 230052 were miscalculated. 2. Performance Reporting- Performance reports contained inconsistencies with supporting documentation, discrepancies in reported outcomes versus internal records, and required performance measures for federal reporting were not always documented. Cause: SEFA preparation may not follow a structured review process, and additional training may be beneficial to ensure accurate reporting. Performance reporting processes may lack sufficient internal validation steps, leading to discrepancies in reported outcomes. Furthermore, documentation and internal control procedures may need enhancement to ensure consistency and transparency in financial and performance reporting. Potential Effect: The following are the potential effects of the condition:  Compliance Risks – Errors in SEFA and performance reporting could affect program selection, compliance testing, and overall federal compliance.  Audit & Operational Delays – Revisions and missing documentation can cause delays in the Single Audit, impacting financial reporting timelines.  Funding & Reputational Considerations – Inconsistent financial and performance reporting may raise concerns with funding agencies, affecting grant renewals and external stakeholder confidence.  Increased Administrative Burden – A lack of structured processes may increase the workload for finance staff, making grant reporting and performance tracking less efficient. Questioned Cost: Not quantifiable. Context: Our review covered the fiscal year ending December 31, 2022, and focused on transactions related to SOR grant programs administered through the Ohio Department of Mental Health and Addiction Services. During the audit, the SEFA underwent three revisions before being finalized. Additionally, we noted the following concerns:  Timely Access to Supporting Documentation – Documentation to verify SEFA information was not readily available, which delayed the validation process.  Performance Reporting Discrepancies – Performance reports submitted for federal compliance did not always match internal tracking records, indicating a need for improved validation. Recommendation: To strengthen financial reporting and compliance, we recommend the following actionable and achievable steps: 1. Establish a Structured SEFA Review Process Implement a two-step validation process before finalizing SEFA to ensure all information aligns with grant agreements and financial records. Assign a secondary reviewer (e.g., a senior accountant or compliance officer) to verify grant period dates, pass-through numbers, and award classifications. Use a grant reporting checklist to confirm all key reporting elements before submission. 2. Strengthen Performance Reporting Accuracy Establish a review process to validate performance reports against internal program data before submission. Develop standardized templates and reporting procedures to ensure consistency and completeness. Implement training for program staff to enhance understanding of performance reporting requirements. 3. Provide Targeted Training for Key Staff Offer Continuing Professional Education (CPE) courses focused on Single Audit requirements and federal grant reporting best practices. Conduct internal training for finance and program personnel to strengthen their understanding of federal compliance expectations. 4. Utilize Technology to Enhance Accuracy Leverage existing accounting software to improve SEFA accuracy. Implement automated grant tracking tools to reduce manual errors and improve efficiency. Utilize performance tracking software to enhance reporting accuracy. 5. Strengthen Internal Controls and Documentation. Develop and document clear policies and procedures for SEFA preparation and performance reporting. Maintain an organized grant documentation repository to ensure supporting records are easily accessible. Conduct periodic internal reviews to ensure ongoing compliance and process improvement. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-005 - Reinforce Cash Management Compliance Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Cash Management Criteria: Cash management for reimbursement-based grants must be based on actual expenditures paid, ensuring compliance with federal cash management regulations and preventing excess fund retention. Condition: Our audit identified areas where cash management can be reinforced based on these specific instances: 1. Supporting documentation was not readily available to confirm that expenses were paid before requesting reimbursement. 2. The general ledger did not reflect all transactions supporting grant disbursement requests for the period January 1, 2022 to December 31, 2022. Cause: Cash management procedures may not be fully aligned with federal compliance requirements, leading to manual calculations instead of relying on real-time accounting data. Furthermore, documentation and internal control procedures may need enhancement to ensure consistency and transparency in financial reporting. Potential Effect: Errors in cash management could result in non-compliance with federal cash handling requirements. Missing documentation can delay audit procedures. Additionally, non compliance may impact grant renewals. Questioned Cost: $817,254 Context: Reimbursement requests were not always backed by documentation confirming expenses were paid, and the general ledger did not fully capture all grant-related transactions. These issues suggest gaps in internal controls, reliance on manual calculations, and misalignment with federal compliance requirements. If unaddressed, these deficiencies could lead to non-compliance, audit delays, and potential risks to future grant funding. Strengthening financial controls and reconciliation processes is necessary to ensure compliance and transparency. Recommendation: To enhance compliance, streamline reconciliation, and strengthen internal controls, we recommend implementing the following practical, proactive measures: 1. Align Reimbursement Requests with the General Ledger Ensure that all reimbursement requests are directly tied to actual expenditures recorded in the general ledger, minimizing reliance on manual tracking. 2. Implement a Systematic Reconciliation Process Establish a structured reconciliation process that links each reimbursement request to paid expenses, with supporting documentation readily available for review. 3. Strengthen Real-Time Grant Cash Flow Tracking Utilize existing accounting software to have a real-time tracking system for grant-related cash flow to ensure compliance with reimbursement-based grant requirements. 4. Assign a Grant Compliance Lead Designate a finance or administrative team member to oversee cash management compliance, ensuring consistency and acting as the primary point of contact for grant related financial matters. 5. Conduct Monthly Reconciliation Meetings Facilitate monthly reconciliation meetings between finance and program teams to align financial records with program expenditures and address any discrepancies proactively. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-006- Late Submission of Single Audit Report and Data Collection Form to the U.S Census Bureau (Repeated 2021-007) Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Reporting Criteria: Under the Uniform Guidance (2 CFR Part 200, Subpart F – Audit Requirements), non federal entities that expend $750,000 or more in federal funds in a fiscal year must submit their Single Audit Report and Data Collection Form to the Federal Audit Clearinghouse (U.S. Census Bureau) within nine months after the end of the fiscal year or within 30 days of receiving the auditor’s report, whichever comes first. Condition: The Organization did not submit the required DCF for the fiscal year ended December 31, 2022, by the required deadline. Cause: The delay was primarily due to the timing of providing the necessary financial documents for audit completion. As a result, the auditors required additional time to complete their review, which contributed to the later submission date. Potential Effect: RSNEO was late for its submission of its 2022 Single Audit Report and its Data Collection for to the U.S. Census Bureau and as such will be considered a “High Risk Auditee” for the next two years. Questioned Cost: Not quantifiable. Context: In the prior year, RSNEO submitted the 2021 Single Audit Report and Data Collection Form in February 2023, exceeding the extended deadline of September 30, 2022. Despite previous recommendations to improve timeliness, RSNEO encountered similar delays in submitting the 2022 Single Audit Report, indicating the need for enhanced measures to ensure compliance with federal reporting requirements. Recommendation: RSNEO should make every attempt to submit both its 2023 Single Audit Report and its Data Collection Form to the U. S. Census Bureau by the required due date. Additionally, to help ensure timely audit submissions, RSNEO should consider the following:  Engage Auditors Earlier – Finalize auditor engagement at least six months before the deadline.  Strengthen Compliance Oversight – Assign a compliance officer or team to track and enforce deadlines.  Implement a Monitoring System – Develop a structured timeline with key milestones and regular progress checks.  Improve Coordination – Establish a document submission schedule to provide auditors with necessary records in advance.  Develop a Contingency Plan – Establish an escalation process to address unexpected delays and explore alternative solutions. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-004 - Strengthen SEFA Preparation and Performance Reporting Compliance Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Reporting Criteria: Effective grant management requires accurate financial and performance reporting, supported by strong internal controls to ensure compliance with federal regulations. The Schedule of Expenditures of Federal Awards (SEFA) must be complete, accurate, and aligned with grant agreements and accounting records, as it determines major program selection in the Single Audit. Performance reports should be consistent with supporting records to meet federal grant requirements and demonstrate compliance. Condition: Our audit identified opportunities to improve SEFA preparation and performance reporting to enhance accuracy, compliance, and efficiency. 1. SEFA Preparation-The SEFA required multiple revisions due to inaccuracies, including misaligned grant period dates, incorrect pass-through entity numbers, and errors in contract details for SAMHSA and SOR grants. Non-federal awards were mistakenly included, and expenditure totals for SOR contracts 2200648 and 230052 were miscalculated. 2. Performance Reporting- Performance reports contained inconsistencies with supporting documentation, discrepancies in reported outcomes versus internal records, and required performance measures for federal reporting were not always documented. Cause: SEFA preparation may not follow a structured review process, and additional training may be beneficial to ensure accurate reporting. Performance reporting processes may lack sufficient internal validation steps, leading to discrepancies in reported outcomes. Furthermore, documentation and internal control procedures may need enhancement to ensure consistency and transparency in financial and performance reporting. Potential Effect: The following are the potential effects of the condition:  Compliance Risks – Errors in SEFA and performance reporting could affect program selection, compliance testing, and overall federal compliance.  Audit & Operational Delays – Revisions and missing documentation can cause delays in the Single Audit, impacting financial reporting timelines.  Funding & Reputational Considerations – Inconsistent financial and performance reporting may raise concerns with funding agencies, affecting grant renewals and external stakeholder confidence.  Increased Administrative Burden – A lack of structured processes may increase the workload for finance staff, making grant reporting and performance tracking less efficient. Questioned Cost: Not quantifiable. Context: Our review covered the fiscal year ending December 31, 2022, and focused on transactions related to SOR grant programs administered through the Ohio Department of Mental Health and Addiction Services. During the audit, the SEFA underwent three revisions before being finalized. Additionally, we noted the following concerns:  Timely Access to Supporting Documentation – Documentation to verify SEFA information was not readily available, which delayed the validation process.  Performance Reporting Discrepancies – Performance reports submitted for federal compliance did not always match internal tracking records, indicating a need for improved validation. Recommendation: To strengthen financial reporting and compliance, we recommend the following actionable and achievable steps: 1. Establish a Structured SEFA Review Process Implement a two-step validation process before finalizing SEFA to ensure all information aligns with grant agreements and financial records. Assign a secondary reviewer (e.g., a senior accountant or compliance officer) to verify grant period dates, pass-through numbers, and award classifications. Use a grant reporting checklist to confirm all key reporting elements before submission. 2. Strengthen Performance Reporting Accuracy Establish a review process to validate performance reports against internal program data before submission. Develop standardized templates and reporting procedures to ensure consistency and completeness. Implement training for program staff to enhance understanding of performance reporting requirements. 3. Provide Targeted Training for Key Staff Offer Continuing Professional Education (CPE) courses focused on Single Audit requirements and federal grant reporting best practices. Conduct internal training for finance and program personnel to strengthen their understanding of federal compliance expectations. 4. Utilize Technology to Enhance Accuracy Leverage existing accounting software to improve SEFA accuracy. Implement automated grant tracking tools to reduce manual errors and improve efficiency. Utilize performance tracking software to enhance reporting accuracy. 5. Strengthen Internal Controls and Documentation. Develop and document clear policies and procedures for SEFA preparation and performance reporting. Maintain an organized grant documentation repository to ensure supporting records are easily accessible. Conduct periodic internal reviews to ensure ongoing compliance and process improvement. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-005 - Reinforce Cash Management Compliance Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Cash Management Criteria: Cash management for reimbursement-based grants must be based on actual expenditures paid, ensuring compliance with federal cash management regulations and preventing excess fund retention. Condition: Our audit identified areas where cash management can be reinforced based on these specific instances: 1. Supporting documentation was not readily available to confirm that expenses were paid before requesting reimbursement. 2. The general ledger did not reflect all transactions supporting grant disbursement requests for the period January 1, 2022 to December 31, 2022. Cause: Cash management procedures may not be fully aligned with federal compliance requirements, leading to manual calculations instead of relying on real-time accounting data. Furthermore, documentation and internal control procedures may need enhancement to ensure consistency and transparency in financial reporting. Potential Effect: Errors in cash management could result in non-compliance with federal cash handling requirements. Missing documentation can delay audit procedures. Additionally, non compliance may impact grant renewals. Questioned Cost: $817,254 Context: Reimbursement requests were not always backed by documentation confirming expenses were paid, and the general ledger did not fully capture all grant-related transactions. These issues suggest gaps in internal controls, reliance on manual calculations, and misalignment with federal compliance requirements. If unaddressed, these deficiencies could lead to non-compliance, audit delays, and potential risks to future grant funding. Strengthening financial controls and reconciliation processes is necessary to ensure compliance and transparency. Recommendation: To enhance compliance, streamline reconciliation, and strengthen internal controls, we recommend implementing the following practical, proactive measures: 1. Align Reimbursement Requests with the General Ledger Ensure that all reimbursement requests are directly tied to actual expenditures recorded in the general ledger, minimizing reliance on manual tracking. 2. Implement a Systematic Reconciliation Process Establish a structured reconciliation process that links each reimbursement request to paid expenses, with supporting documentation readily available for review. 3. Strengthen Real-Time Grant Cash Flow Tracking Utilize existing accounting software to have a real-time tracking system for grant-related cash flow to ensure compliance with reimbursement-based grant requirements. 4. Assign a Grant Compliance Lead Designate a finance or administrative team member to oversee cash management compliance, ensuring consistency and acting as the primary point of contact for grant related financial matters. 5. Conduct Monthly Reconciliation Meetings Facilitate monthly reconciliation meetings between finance and program teams to align financial records with program expenditures and address any discrepancies proactively. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-006- Late Submission of Single Audit Report and Data Collection Form to the U.S Census Bureau (Repeated 2021-007) Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Reporting Criteria: Under the Uniform Guidance (2 CFR Part 200, Subpart F – Audit Requirements), non federal entities that expend $750,000 or more in federal funds in a fiscal year must submit their Single Audit Report and Data Collection Form to the Federal Audit Clearinghouse (U.S. Census Bureau) within nine months after the end of the fiscal year or within 30 days of receiving the auditor’s report, whichever comes first. Condition: The Organization did not submit the required DCF for the fiscal year ended December 31, 2022, by the required deadline. Cause: The delay was primarily due to the timing of providing the necessary financial documents for audit completion. As a result, the auditors required additional time to complete their review, which contributed to the later submission date. Potential Effect: RSNEO was late for its submission of its 2022 Single Audit Report and its Data Collection for to the U.S. Census Bureau and as such will be considered a “High Risk Auditee” for the next two years. Questioned Cost: Not quantifiable. Context: In the prior year, RSNEO submitted the 2021 Single Audit Report and Data Collection Form in February 2023, exceeding the extended deadline of September 30, 2022. Despite previous recommendations to improve timeliness, RSNEO encountered similar delays in submitting the 2022 Single Audit Report, indicating the need for enhanced measures to ensure compliance with federal reporting requirements. Recommendation: RSNEO should make every attempt to submit both its 2023 Single Audit Report and its Data Collection Form to the U. S. Census Bureau by the required due date. Additionally, to help ensure timely audit submissions, RSNEO should consider the following:  Engage Auditors Earlier – Finalize auditor engagement at least six months before the deadline.  Strengthen Compliance Oversight – Assign a compliance officer or team to track and enforce deadlines.  Implement a Monitoring System – Develop a structured timeline with key milestones and regular progress checks.  Improve Coordination – Establish a document submission schedule to provide auditors with necessary records in advance.  Develop a Contingency Plan – Establish an escalation process to address unexpected delays and explore alternative solutions. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-004 - Strengthen SEFA Preparation and Performance Reporting Compliance Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Reporting Criteria: Effective grant management requires accurate financial and performance reporting, supported by strong internal controls to ensure compliance with federal regulations. The Schedule of Expenditures of Federal Awards (SEFA) must be complete, accurate, and aligned with grant agreements and accounting records, as it determines major program selection in the Single Audit. Performance reports should be consistent with supporting records to meet federal grant requirements and demonstrate compliance. Condition: Our audit identified opportunities to improve SEFA preparation and performance reporting to enhance accuracy, compliance, and efficiency. 1. SEFA Preparation-The SEFA required multiple revisions due to inaccuracies, including misaligned grant period dates, incorrect pass-through entity numbers, and errors in contract details for SAMHSA and SOR grants. Non-federal awards were mistakenly included, and expenditure totals for SOR contracts 2200648 and 230052 were miscalculated. 2. Performance Reporting- Performance reports contained inconsistencies with supporting documentation, discrepancies in reported outcomes versus internal records, and required performance measures for federal reporting were not always documented. Cause: SEFA preparation may not follow a structured review process, and additional training may be beneficial to ensure accurate reporting. Performance reporting processes may lack sufficient internal validation steps, leading to discrepancies in reported outcomes. Furthermore, documentation and internal control procedures may need enhancement to ensure consistency and transparency in financial and performance reporting. Potential Effect: The following are the potential effects of the condition:  Compliance Risks – Errors in SEFA and performance reporting could affect program selection, compliance testing, and overall federal compliance.  Audit & Operational Delays – Revisions and missing documentation can cause delays in the Single Audit, impacting financial reporting timelines.  Funding & Reputational Considerations – Inconsistent financial and performance reporting may raise concerns with funding agencies, affecting grant renewals and external stakeholder confidence.  Increased Administrative Burden – A lack of structured processes may increase the workload for finance staff, making grant reporting and performance tracking less efficient. Questioned Cost: Not quantifiable. Context: Our review covered the fiscal year ending December 31, 2022, and focused on transactions related to SOR grant programs administered through the Ohio Department of Mental Health and Addiction Services. During the audit, the SEFA underwent three revisions before being finalized. Additionally, we noted the following concerns:  Timely Access to Supporting Documentation – Documentation to verify SEFA information was not readily available, which delayed the validation process.  Performance Reporting Discrepancies – Performance reports submitted for federal compliance did not always match internal tracking records, indicating a need for improved validation. Recommendation: To strengthen financial reporting and compliance, we recommend the following actionable and achievable steps: 1. Establish a Structured SEFA Review Process Implement a two-step validation process before finalizing SEFA to ensure all information aligns with grant agreements and financial records. Assign a secondary reviewer (e.g., a senior accountant or compliance officer) to verify grant period dates, pass-through numbers, and award classifications. Use a grant reporting checklist to confirm all key reporting elements before submission. 2. Strengthen Performance Reporting Accuracy Establish a review process to validate performance reports against internal program data before submission. Develop standardized templates and reporting procedures to ensure consistency and completeness. Implement training for program staff to enhance understanding of performance reporting requirements. 3. Provide Targeted Training for Key Staff Offer Continuing Professional Education (CPE) courses focused on Single Audit requirements and federal grant reporting best practices. Conduct internal training for finance and program personnel to strengthen their understanding of federal compliance expectations. 4. Utilize Technology to Enhance Accuracy Leverage existing accounting software to improve SEFA accuracy. Implement automated grant tracking tools to reduce manual errors and improve efficiency. Utilize performance tracking software to enhance reporting accuracy. 5. Strengthen Internal Controls and Documentation. Develop and document clear policies and procedures for SEFA preparation and performance reporting. Maintain an organized grant documentation repository to ensure supporting records are easily accessible. Conduct periodic internal reviews to ensure ongoing compliance and process improvement. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-005 - Reinforce Cash Management Compliance Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Cash Management Criteria: Cash management for reimbursement-based grants must be based on actual expenditures paid, ensuring compliance with federal cash management regulations and preventing excess fund retention. Condition: Our audit identified areas where cash management can be reinforced based on these specific instances: 1. Supporting documentation was not readily available to confirm that expenses were paid before requesting reimbursement. 2. The general ledger did not reflect all transactions supporting grant disbursement requests for the period January 1, 2022 to December 31, 2022. Cause: Cash management procedures may not be fully aligned with federal compliance requirements, leading to manual calculations instead of relying on real-time accounting data. Furthermore, documentation and internal control procedures may need enhancement to ensure consistency and transparency in financial reporting. Potential Effect: Errors in cash management could result in non-compliance with federal cash handling requirements. Missing documentation can delay audit procedures. Additionally, non compliance may impact grant renewals. Questioned Cost: $817,254 Context: Reimbursement requests were not always backed by documentation confirming expenses were paid, and the general ledger did not fully capture all grant-related transactions. These issues suggest gaps in internal controls, reliance on manual calculations, and misalignment with federal compliance requirements. If unaddressed, these deficiencies could lead to non-compliance, audit delays, and potential risks to future grant funding. Strengthening financial controls and reconciliation processes is necessary to ensure compliance and transparency. Recommendation: To enhance compliance, streamline reconciliation, and strengthen internal controls, we recommend implementing the following practical, proactive measures: 1. Align Reimbursement Requests with the General Ledger Ensure that all reimbursement requests are directly tied to actual expenditures recorded in the general ledger, minimizing reliance on manual tracking. 2. Implement a Systematic Reconciliation Process Establish a structured reconciliation process that links each reimbursement request to paid expenses, with supporting documentation readily available for review. 3. Strengthen Real-Time Grant Cash Flow Tracking Utilize existing accounting software to have a real-time tracking system for grant-related cash flow to ensure compliance with reimbursement-based grant requirements. 4. Assign a Grant Compliance Lead Designate a finance or administrative team member to oversee cash management compliance, ensuring consistency and acting as the primary point of contact for grant related financial matters. 5. Conduct Monthly Reconciliation Meetings Facilitate monthly reconciliation meetings between finance and program teams to align financial records with program expenditures and address any discrepancies proactively. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-006- Late Submission of Single Audit Report and Data Collection Form to the U.S Census Bureau (Repeated 2021-007) Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Reporting Criteria: Under the Uniform Guidance (2 CFR Part 200, Subpart F – Audit Requirements), non federal entities that expend $750,000 or more in federal funds in a fiscal year must submit their Single Audit Report and Data Collection Form to the Federal Audit Clearinghouse (U.S. Census Bureau) within nine months after the end of the fiscal year or within 30 days of receiving the auditor’s report, whichever comes first. Condition: The Organization did not submit the required DCF for the fiscal year ended December 31, 2022, by the required deadline. Cause: The delay was primarily due to the timing of providing the necessary financial documents for audit completion. As a result, the auditors required additional time to complete their review, which contributed to the later submission date. Potential Effect: RSNEO was late for its submission of its 2022 Single Audit Report and its Data Collection for to the U.S. Census Bureau and as such will be considered a “High Risk Auditee” for the next two years. Questioned Cost: Not quantifiable. Context: In the prior year, RSNEO submitted the 2021 Single Audit Report and Data Collection Form in February 2023, exceeding the extended deadline of September 30, 2022. Despite previous recommendations to improve timeliness, RSNEO encountered similar delays in submitting the 2022 Single Audit Report, indicating the need for enhanced measures to ensure compliance with federal reporting requirements. Recommendation: RSNEO should make every attempt to submit both its 2023 Single Audit Report and its Data Collection Form to the U. S. Census Bureau by the required due date. Additionally, to help ensure timely audit submissions, RSNEO should consider the following:  Engage Auditors Earlier – Finalize auditor engagement at least six months before the deadline.  Strengthen Compliance Oversight – Assign a compliance officer or team to track and enforce deadlines.  Implement a Monitoring System – Develop a structured timeline with key milestones and regular progress checks.  Improve Coordination – Establish a document submission schedule to provide auditors with necessary records in advance.  Develop a Contingency Plan – Establish an escalation process to address unexpected delays and explore alternative solutions. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-004 - Strengthen SEFA Preparation and Performance Reporting Compliance Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Reporting Criteria: Effective grant management requires accurate financial and performance reporting, supported by strong internal controls to ensure compliance with federal regulations. The Schedule of Expenditures of Federal Awards (SEFA) must be complete, accurate, and aligned with grant agreements and accounting records, as it determines major program selection in the Single Audit. Performance reports should be consistent with supporting records to meet federal grant requirements and demonstrate compliance. Condition: Our audit identified opportunities to improve SEFA preparation and performance reporting to enhance accuracy, compliance, and efficiency. 1. SEFA Preparation-The SEFA required multiple revisions due to inaccuracies, including misaligned grant period dates, incorrect pass-through entity numbers, and errors in contract details for SAMHSA and SOR grants. Non-federal awards were mistakenly included, and expenditure totals for SOR contracts 2200648 and 230052 were miscalculated. 2. Performance Reporting- Performance reports contained inconsistencies with supporting documentation, discrepancies in reported outcomes versus internal records, and required performance measures for federal reporting were not always documented. Cause: SEFA preparation may not follow a structured review process, and additional training may be beneficial to ensure accurate reporting. Performance reporting processes may lack sufficient internal validation steps, leading to discrepancies in reported outcomes. Furthermore, documentation and internal control procedures may need enhancement to ensure consistency and transparency in financial and performance reporting. Potential Effect: The following are the potential effects of the condition:  Compliance Risks – Errors in SEFA and performance reporting could affect program selection, compliance testing, and overall federal compliance.  Audit & Operational Delays – Revisions and missing documentation can cause delays in the Single Audit, impacting financial reporting timelines.  Funding & Reputational Considerations – Inconsistent financial and performance reporting may raise concerns with funding agencies, affecting grant renewals and external stakeholder confidence.  Increased Administrative Burden – A lack of structured processes may increase the workload for finance staff, making grant reporting and performance tracking less efficient. Questioned Cost: Not quantifiable. Context: Our review covered the fiscal year ending December 31, 2022, and focused on transactions related to SOR grant programs administered through the Ohio Department of Mental Health and Addiction Services. During the audit, the SEFA underwent three revisions before being finalized. Additionally, we noted the following concerns:  Timely Access to Supporting Documentation – Documentation to verify SEFA information was not readily available, which delayed the validation process.  Performance Reporting Discrepancies – Performance reports submitted for federal compliance did not always match internal tracking records, indicating a need for improved validation. Recommendation: To strengthen financial reporting and compliance, we recommend the following actionable and achievable steps: 1. Establish a Structured SEFA Review Process Implement a two-step validation process before finalizing SEFA to ensure all information aligns with grant agreements and financial records. Assign a secondary reviewer (e.g., a senior accountant or compliance officer) to verify grant period dates, pass-through numbers, and award classifications. Use a grant reporting checklist to confirm all key reporting elements before submission. 2. Strengthen Performance Reporting Accuracy Establish a review process to validate performance reports against internal program data before submission. Develop standardized templates and reporting procedures to ensure consistency and completeness. Implement training for program staff to enhance understanding of performance reporting requirements. 3. Provide Targeted Training for Key Staff Offer Continuing Professional Education (CPE) courses focused on Single Audit requirements and federal grant reporting best practices. Conduct internal training for finance and program personnel to strengthen their understanding of federal compliance expectations. 4. Utilize Technology to Enhance Accuracy Leverage existing accounting software to improve SEFA accuracy. Implement automated grant tracking tools to reduce manual errors and improve efficiency. Utilize performance tracking software to enhance reporting accuracy. 5. Strengthen Internal Controls and Documentation. Develop and document clear policies and procedures for SEFA preparation and performance reporting. Maintain an organized grant documentation repository to ensure supporting records are easily accessible. Conduct periodic internal reviews to ensure ongoing compliance and process improvement. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-005 - Reinforce Cash Management Compliance Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Cash Management Criteria: Cash management for reimbursement-based grants must be based on actual expenditures paid, ensuring compliance with federal cash management regulations and preventing excess fund retention. Condition: Our audit identified areas where cash management can be reinforced based on these specific instances: 1. Supporting documentation was not readily available to confirm that expenses were paid before requesting reimbursement. 2. The general ledger did not reflect all transactions supporting grant disbursement requests for the period January 1, 2022 to December 31, 2022. Cause: Cash management procedures may not be fully aligned with federal compliance requirements, leading to manual calculations instead of relying on real-time accounting data. Furthermore, documentation and internal control procedures may need enhancement to ensure consistency and transparency in financial reporting. Potential Effect: Errors in cash management could result in non-compliance with federal cash handling requirements. Missing documentation can delay audit procedures. Additionally, non compliance may impact grant renewals. Questioned Cost: $817,254 Context: Reimbursement requests were not always backed by documentation confirming expenses were paid, and the general ledger did not fully capture all grant-related transactions. These issues suggest gaps in internal controls, reliance on manual calculations, and misalignment with federal compliance requirements. If unaddressed, these deficiencies could lead to non-compliance, audit delays, and potential risks to future grant funding. Strengthening financial controls and reconciliation processes is necessary to ensure compliance and transparency. Recommendation: To enhance compliance, streamline reconciliation, and strengthen internal controls, we recommend implementing the following practical, proactive measures: 1. Align Reimbursement Requests with the General Ledger Ensure that all reimbursement requests are directly tied to actual expenditures recorded in the general ledger, minimizing reliance on manual tracking. 2. Implement a Systematic Reconciliation Process Establish a structured reconciliation process that links each reimbursement request to paid expenses, with supporting documentation readily available for review. 3. Strengthen Real-Time Grant Cash Flow Tracking Utilize existing accounting software to have a real-time tracking system for grant-related cash flow to ensure compliance with reimbursement-based grant requirements. 4. Assign a Grant Compliance Lead Designate a finance or administrative team member to oversee cash management compliance, ensuring consistency and acting as the primary point of contact for grant related financial matters. 5. Conduct Monthly Reconciliation Meetings Facilitate monthly reconciliation meetings between finance and program teams to align financial records with program expenditures and address any discrepancies proactively. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-006- Late Submission of Single Audit Report and Data Collection Form to the U.S Census Bureau (Repeated 2021-007) Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Reporting Criteria: Under the Uniform Guidance (2 CFR Part 200, Subpart F – Audit Requirements), non federal entities that expend $750,000 or more in federal funds in a fiscal year must submit their Single Audit Report and Data Collection Form to the Federal Audit Clearinghouse (U.S. Census Bureau) within nine months after the end of the fiscal year or within 30 days of receiving the auditor’s report, whichever comes first. Condition: The Organization did not submit the required DCF for the fiscal year ended December 31, 2022, by the required deadline. Cause: The delay was primarily due to the timing of providing the necessary financial documents for audit completion. As a result, the auditors required additional time to complete their review, which contributed to the later submission date. Potential Effect: RSNEO was late for its submission of its 2022 Single Audit Report and its Data Collection for to the U.S. Census Bureau and as such will be considered a “High Risk Auditee” for the next two years. Questioned Cost: Not quantifiable. Context: In the prior year, RSNEO submitted the 2021 Single Audit Report and Data Collection Form in February 2023, exceeding the extended deadline of September 30, 2022. Despite previous recommendations to improve timeliness, RSNEO encountered similar delays in submitting the 2022 Single Audit Report, indicating the need for enhanced measures to ensure compliance with federal reporting requirements. Recommendation: RSNEO should make every attempt to submit both its 2023 Single Audit Report and its Data Collection Form to the U. S. Census Bureau by the required due date. Additionally, to help ensure timely audit submissions, RSNEO should consider the following:  Engage Auditors Earlier – Finalize auditor engagement at least six months before the deadline.  Strengthen Compliance Oversight – Assign a compliance officer or team to track and enforce deadlines.  Implement a Monitoring System – Develop a structured timeline with key milestones and regular progress checks.  Improve Coordination – Establish a document submission schedule to provide auditors with necessary records in advance.  Develop a Contingency Plan – Establish an escalation process to address unexpected delays and explore alternative solutions. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-004 - Strengthen SEFA Preparation and Performance Reporting Compliance Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Reporting Criteria: Effective grant management requires accurate financial and performance reporting, supported by strong internal controls to ensure compliance with federal regulations. The Schedule of Expenditures of Federal Awards (SEFA) must be complete, accurate, and aligned with grant agreements and accounting records, as it determines major program selection in the Single Audit. Performance reports should be consistent with supporting records to meet federal grant requirements and demonstrate compliance. Condition: Our audit identified opportunities to improve SEFA preparation and performance reporting to enhance accuracy, compliance, and efficiency. 1. SEFA Preparation-The SEFA required multiple revisions due to inaccuracies, including misaligned grant period dates, incorrect pass-through entity numbers, and errors in contract details for SAMHSA and SOR grants. Non-federal awards were mistakenly included, and expenditure totals for SOR contracts 2200648 and 230052 were miscalculated. 2. Performance Reporting- Performance reports contained inconsistencies with supporting documentation, discrepancies in reported outcomes versus internal records, and required performance measures for federal reporting were not always documented. Cause: SEFA preparation may not follow a structured review process, and additional training may be beneficial to ensure accurate reporting. Performance reporting processes may lack sufficient internal validation steps, leading to discrepancies in reported outcomes. Furthermore, documentation and internal control procedures may need enhancement to ensure consistency and transparency in financial and performance reporting. Potential Effect: The following are the potential effects of the condition:  Compliance Risks – Errors in SEFA and performance reporting could affect program selection, compliance testing, and overall federal compliance.  Audit & Operational Delays – Revisions and missing documentation can cause delays in the Single Audit, impacting financial reporting timelines.  Funding & Reputational Considerations – Inconsistent financial and performance reporting may raise concerns with funding agencies, affecting grant renewals and external stakeholder confidence.  Increased Administrative Burden – A lack of structured processes may increase the workload for finance staff, making grant reporting and performance tracking less efficient. Questioned Cost: Not quantifiable. Context: Our review covered the fiscal year ending December 31, 2022, and focused on transactions related to SOR grant programs administered through the Ohio Department of Mental Health and Addiction Services. During the audit, the SEFA underwent three revisions before being finalized. Additionally, we noted the following concerns:  Timely Access to Supporting Documentation – Documentation to verify SEFA information was not readily available, which delayed the validation process.  Performance Reporting Discrepancies – Performance reports submitted for federal compliance did not always match internal tracking records, indicating a need for improved validation. Recommendation: To strengthen financial reporting and compliance, we recommend the following actionable and achievable steps: 1. Establish a Structured SEFA Review Process Implement a two-step validation process before finalizing SEFA to ensure all information aligns with grant agreements and financial records. Assign a secondary reviewer (e.g., a senior accountant or compliance officer) to verify grant period dates, pass-through numbers, and award classifications. Use a grant reporting checklist to confirm all key reporting elements before submission. 2. Strengthen Performance Reporting Accuracy Establish a review process to validate performance reports against internal program data before submission. Develop standardized templates and reporting procedures to ensure consistency and completeness. Implement training for program staff to enhance understanding of performance reporting requirements. 3. Provide Targeted Training for Key Staff Offer Continuing Professional Education (CPE) courses focused on Single Audit requirements and federal grant reporting best practices. Conduct internal training for finance and program personnel to strengthen their understanding of federal compliance expectations. 4. Utilize Technology to Enhance Accuracy Leverage existing accounting software to improve SEFA accuracy. Implement automated grant tracking tools to reduce manual errors and improve efficiency. Utilize performance tracking software to enhance reporting accuracy. 5. Strengthen Internal Controls and Documentation. Develop and document clear policies and procedures for SEFA preparation and performance reporting. Maintain an organized grant documentation repository to ensure supporting records are easily accessible. Conduct periodic internal reviews to ensure ongoing compliance and process improvement. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-005 - Reinforce Cash Management Compliance Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Cash Management Criteria: Cash management for reimbursement-based grants must be based on actual expenditures paid, ensuring compliance with federal cash management regulations and preventing excess fund retention. Condition: Our audit identified areas where cash management can be reinforced based on these specific instances: 1. Supporting documentation was not readily available to confirm that expenses were paid before requesting reimbursement. 2. The general ledger did not reflect all transactions supporting grant disbursement requests for the period January 1, 2022 to December 31, 2022. Cause: Cash management procedures may not be fully aligned with federal compliance requirements, leading to manual calculations instead of relying on real-time accounting data. Furthermore, documentation and internal control procedures may need enhancement to ensure consistency and transparency in financial reporting. Potential Effect: Errors in cash management could result in non-compliance with federal cash handling requirements. Missing documentation can delay audit procedures. Additionally, non compliance may impact grant renewals. Questioned Cost: $817,254 Context: Reimbursement requests were not always backed by documentation confirming expenses were paid, and the general ledger did not fully capture all grant-related transactions. These issues suggest gaps in internal controls, reliance on manual calculations, and misalignment with federal compliance requirements. If unaddressed, these deficiencies could lead to non-compliance, audit delays, and potential risks to future grant funding. Strengthening financial controls and reconciliation processes is necessary to ensure compliance and transparency. Recommendation: To enhance compliance, streamline reconciliation, and strengthen internal controls, we recommend implementing the following practical, proactive measures: 1. Align Reimbursement Requests with the General Ledger Ensure that all reimbursement requests are directly tied to actual expenditures recorded in the general ledger, minimizing reliance on manual tracking. 2. Implement a Systematic Reconciliation Process Establish a structured reconciliation process that links each reimbursement request to paid expenses, with supporting documentation readily available for review. 3. Strengthen Real-Time Grant Cash Flow Tracking Utilize existing accounting software to have a real-time tracking system for grant-related cash flow to ensure compliance with reimbursement-based grant requirements. 4. Assign a Grant Compliance Lead Designate a finance or administrative team member to oversee cash management compliance, ensuring consistency and acting as the primary point of contact for grant related financial matters. 5. Conduct Monthly Reconciliation Meetings Facilitate monthly reconciliation meetings between finance and program teams to align financial records with program expenditures and address any discrepancies proactively. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-006- Late Submission of Single Audit Report and Data Collection Form to the U.S Census Bureau (Repeated 2021-007) Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Reporting Criteria: Under the Uniform Guidance (2 CFR Part 200, Subpart F – Audit Requirements), non federal entities that expend $750,000 or more in federal funds in a fiscal year must submit their Single Audit Report and Data Collection Form to the Federal Audit Clearinghouse (U.S. Census Bureau) within nine months after the end of the fiscal year or within 30 days of receiving the auditor’s report, whichever comes first. Condition: The Organization did not submit the required DCF for the fiscal year ended December 31, 2022, by the required deadline. Cause: The delay was primarily due to the timing of providing the necessary financial documents for audit completion. As a result, the auditors required additional time to complete their review, which contributed to the later submission date. Potential Effect: RSNEO was late for its submission of its 2022 Single Audit Report and its Data Collection for to the U.S. Census Bureau and as such will be considered a “High Risk Auditee” for the next two years. Questioned Cost: Not quantifiable. Context: In the prior year, RSNEO submitted the 2021 Single Audit Report and Data Collection Form in February 2023, exceeding the extended deadline of September 30, 2022. Despite previous recommendations to improve timeliness, RSNEO encountered similar delays in submitting the 2022 Single Audit Report, indicating the need for enhanced measures to ensure compliance with federal reporting requirements. Recommendation: RSNEO should make every attempt to submit both its 2023 Single Audit Report and its Data Collection Form to the U. S. Census Bureau by the required due date. Additionally, to help ensure timely audit submissions, RSNEO should consider the following:  Engage Auditors Earlier – Finalize auditor engagement at least six months before the deadline.  Strengthen Compliance Oversight – Assign a compliance officer or team to track and enforce deadlines.  Implement a Monitoring System – Develop a structured timeline with key milestones and regular progress checks.  Improve Coordination – Establish a document submission schedule to provide auditors with necessary records in advance.  Develop a Contingency Plan – Establish an escalation process to address unexpected delays and explore alternative solutions. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-004 - Strengthen SEFA Preparation and Performance Reporting Compliance Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Reporting Criteria: Effective grant management requires accurate financial and performance reporting, supported by strong internal controls to ensure compliance with federal regulations. The Schedule of Expenditures of Federal Awards (SEFA) must be complete, accurate, and aligned with grant agreements and accounting records, as it determines major program selection in the Single Audit. Performance reports should be consistent with supporting records to meet federal grant requirements and demonstrate compliance. Condition: Our audit identified opportunities to improve SEFA preparation and performance reporting to enhance accuracy, compliance, and efficiency. 1. SEFA Preparation-The SEFA required multiple revisions due to inaccuracies, including misaligned grant period dates, incorrect pass-through entity numbers, and errors in contract details for SAMHSA and SOR grants. Non-federal awards were mistakenly included, and expenditure totals for SOR contracts 2200648 and 230052 were miscalculated. 2. Performance Reporting- Performance reports contained inconsistencies with supporting documentation, discrepancies in reported outcomes versus internal records, and required performance measures for federal reporting were not always documented. Cause: SEFA preparation may not follow a structured review process, and additional training may be beneficial to ensure accurate reporting. Performance reporting processes may lack sufficient internal validation steps, leading to discrepancies in reported outcomes. Furthermore, documentation and internal control procedures may need enhancement to ensure consistency and transparency in financial and performance reporting. Potential Effect: The following are the potential effects of the condition:  Compliance Risks – Errors in SEFA and performance reporting could affect program selection, compliance testing, and overall federal compliance.  Audit & Operational Delays – Revisions and missing documentation can cause delays in the Single Audit, impacting financial reporting timelines.  Funding & Reputational Considerations – Inconsistent financial and performance reporting may raise concerns with funding agencies, affecting grant renewals and external stakeholder confidence.  Increased Administrative Burden – A lack of structured processes may increase the workload for finance staff, making grant reporting and performance tracking less efficient. Questioned Cost: Not quantifiable. Context: Our review covered the fiscal year ending December 31, 2022, and focused on transactions related to SOR grant programs administered through the Ohio Department of Mental Health and Addiction Services. During the audit, the SEFA underwent three revisions before being finalized. Additionally, we noted the following concerns:  Timely Access to Supporting Documentation – Documentation to verify SEFA information was not readily available, which delayed the validation process.  Performance Reporting Discrepancies – Performance reports submitted for federal compliance did not always match internal tracking records, indicating a need for improved validation. Recommendation: To strengthen financial reporting and compliance, we recommend the following actionable and achievable steps: 1. Establish a Structured SEFA Review Process Implement a two-step validation process before finalizing SEFA to ensure all information aligns with grant agreements and financial records. Assign a secondary reviewer (e.g., a senior accountant or compliance officer) to verify grant period dates, pass-through numbers, and award classifications. Use a grant reporting checklist to confirm all key reporting elements before submission. 2. Strengthen Performance Reporting Accuracy Establish a review process to validate performance reports against internal program data before submission. Develop standardized templates and reporting procedures to ensure consistency and completeness. Implement training for program staff to enhance understanding of performance reporting requirements. 3. Provide Targeted Training for Key Staff Offer Continuing Professional Education (CPE) courses focused on Single Audit requirements and federal grant reporting best practices. Conduct internal training for finance and program personnel to strengthen their understanding of federal compliance expectations. 4. Utilize Technology to Enhance Accuracy Leverage existing accounting software to improve SEFA accuracy. Implement automated grant tracking tools to reduce manual errors and improve efficiency. Utilize performance tracking software to enhance reporting accuracy. 5. Strengthen Internal Controls and Documentation. Develop and document clear policies and procedures for SEFA preparation and performance reporting. Maintain an organized grant documentation repository to ensure supporting records are easily accessible. Conduct periodic internal reviews to ensure ongoing compliance and process improvement. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-005 - Reinforce Cash Management Compliance Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Cash Management Criteria: Cash management for reimbursement-based grants must be based on actual expenditures paid, ensuring compliance with federal cash management regulations and preventing excess fund retention. Condition: Our audit identified areas where cash management can be reinforced based on these specific instances: 1. Supporting documentation was not readily available to confirm that expenses were paid before requesting reimbursement. 2. The general ledger did not reflect all transactions supporting grant disbursement requests for the period January 1, 2022 to December 31, 2022. Cause: Cash management procedures may not be fully aligned with federal compliance requirements, leading to manual calculations instead of relying on real-time accounting data. Furthermore, documentation and internal control procedures may need enhancement to ensure consistency and transparency in financial reporting. Potential Effect: Errors in cash management could result in non-compliance with federal cash handling requirements. Missing documentation can delay audit procedures. Additionally, non compliance may impact grant renewals. Questioned Cost: $817,254 Context: Reimbursement requests were not always backed by documentation confirming expenses were paid, and the general ledger did not fully capture all grant-related transactions. These issues suggest gaps in internal controls, reliance on manual calculations, and misalignment with federal compliance requirements. If unaddressed, these deficiencies could lead to non-compliance, audit delays, and potential risks to future grant funding. Strengthening financial controls and reconciliation processes is necessary to ensure compliance and transparency. Recommendation: To enhance compliance, streamline reconciliation, and strengthen internal controls, we recommend implementing the following practical, proactive measures: 1. Align Reimbursement Requests with the General Ledger Ensure that all reimbursement requests are directly tied to actual expenditures recorded in the general ledger, minimizing reliance on manual tracking. 2. Implement a Systematic Reconciliation Process Establish a structured reconciliation process that links each reimbursement request to paid expenses, with supporting documentation readily available for review. 3. Strengthen Real-Time Grant Cash Flow Tracking Utilize existing accounting software to have a real-time tracking system for grant-related cash flow to ensure compliance with reimbursement-based grant requirements. 4. Assign a Grant Compliance Lead Designate a finance or administrative team member to oversee cash management compliance, ensuring consistency and acting as the primary point of contact for grant related financial matters. 5. Conduct Monthly Reconciliation Meetings Facilitate monthly reconciliation meetings between finance and program teams to align financial records with program expenditures and address any discrepancies proactively. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.

2022-006- Late Submission of Single Audit Report and Data Collection Form to the U.S Census Bureau (Repeated 2021-007) Program Name/ Assistance Listing Number: 93.788 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Applicable Pass-through Entity: Ohio Department of Mental Health and Addiction Services (Ohio MHAS) Type of Findings: Significant Deficiencies and Material Weakness Compliance Requirement: Reporting Criteria: Under the Uniform Guidance (2 CFR Part 200, Subpart F – Audit Requirements), non federal entities that expend $750,000 or more in federal funds in a fiscal year must submit their Single Audit Report and Data Collection Form to the Federal Audit Clearinghouse (U.S. Census Bureau) within nine months after the end of the fiscal year or within 30 days of receiving the auditor’s report, whichever comes first. Condition: The Organization did not submit the required DCF for the fiscal year ended December 31, 2022, by the required deadline. Cause: The delay was primarily due to the timing of providing the necessary financial documents for audit completion. As a result, the auditors required additional time to complete their review, which contributed to the later submission date. Potential Effect: RSNEO was late for its submission of its 2022 Single Audit Report and its Data Collection for to the U.S. Census Bureau and as such will be considered a “High Risk Auditee” for the next two years. Questioned Cost: Not quantifiable. Context: In the prior year, RSNEO submitted the 2021 Single Audit Report and Data Collection Form in February 2023, exceeding the extended deadline of September 30, 2022. Despite previous recommendations to improve timeliness, RSNEO encountered similar delays in submitting the 2022 Single Audit Report, indicating the need for enhanced measures to ensure compliance with federal reporting requirements. Recommendation: RSNEO should make every attempt to submit both its 2023 Single Audit Report and its Data Collection Form to the U. S. Census Bureau by the required due date. Additionally, to help ensure timely audit submissions, RSNEO should consider the following:  Engage Auditors Earlier – Finalize auditor engagement at least six months before the deadline.  Strengthen Compliance Oversight – Assign a compliance officer or team to track and enforce deadlines.  Implement a Monitoring System – Develop a structured timeline with key milestones and regular progress checks.  Improve Coordination – Establish a document submission schedule to provide auditors with necessary records in advance.  Develop a Contingency Plan – Establish an escalation process to address unexpected delays and explore alternative solutions. Views of Responsible Official: RSNEO agrees with the findings and will adhere to the corrective action plan outlined.