Gregory N. Lee, CPA
1310 E Main Street
Humboldt, TN 38343
731-784-9452
731-784-7751
Contemporary Community Solution, LLC
Audited Financial Statements
December 31, 2022
Contemporary Community Solution, LLC
Table of Contents
Independent Auditor's Report ......................................................................................................1
Financial Statements
Balance Sheet ...................................................................................................................................3
Statement of Income ........................................................................................................................4
Statement of Cash Flows .................................................................................................................5
Notes to Financial Statements ..........................................................................................................6
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards ......................................................................................................9
Schedule of Disposition of Prior Year Findings ............................................................................11
Schedule of Findings and Responses .............................................................................................12
Management’s Corrective Action Plan ..........................................................................................14
Member American Institute of Certified Public Accountants and Tennessee Society of Certified Public Accountants
1
Gregory N. Lee
Certified Public Accountant
1310 Main Street
Humboldt, TN 38343
Tel: 731-784-9452
Fax: 731-784-7751
Independent Auditor’s Report
To the Members
of Contemporary Community Solution, LLC
Memphis, Tennessee
Disclaimer of Opinion
We were engaged to audit the financial statements of Contemporary Community Solution, LLC (a limited liability
company), which comprise the balance sheet as of December 31, 2022, and the related statements of income, and cash
flows for the year then ended, and the related notes to the financial statements.
We do not express an opinion on the accompanying financial statements of Contemporary Community Solution, LLC.
Because of the significance of the matter described in the Basis for Disclaimer of Opinion section of our report, we
have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial
statements.
Basis for Disclaimer of Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of
Contemporary Community Solution, LLC and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit.
We were unable to obtain sufficient appropriate audit evidence to substantiate reported receivables and expenses
because supporting documentation could not be provided.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about Contemporary Community Solution, LLC's ability to
continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
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In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards,
we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include examining,
on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
Contemporary Community Solution, LLC’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about Contemporary Community Solution, LLC’s ability to continue as a going concern
for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified
during the audit.
We are required to be independent of Contemporary Community Solution, LLC and to meet our other ethical
responsibilities in accordance with the relevant ethical requirements relating to our audit.
However, because of the matter described in the Basis for Disclaimer of Opinion section of our report, we were not
able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 13, 2024, on our
consideration of Contemporary Community Solution, LLC’s internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of Contemporary
Community Solution, LLC’s internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering Contemporary Community
Solution, LLC’s internal control over financial reporting and compliance.
Gregory N. Lee, CPA
Humboldt, Tennessee
June 13, 2024
Contemporary Community Solution, LLC
Balance Sheet
December 31, 2022
Assets
Current Assets
Cash & Cash Equivalents 91,529$
Accounts Receivable 162,232
Total Current Assets 253,761$
Total Assets 253,761$
Liabilities and Member Equity
Current Liabilities
Accounts Payabl
e
21,049$
Accrued Payrol
l
51,401
Current Portion of Long-Term-Deb
t
38,377
Total Current Liabilities 110,827$
Long-Term Liabilities
Notes Payabl
e
188,277
Less: Current Portio
n
(38,377)
Total Long-Term Liabilitie
s
149,900
Total Liabilities 260,727
Member Equit
y
Retained Earnings (212,359)
Additional Paid-in-Capital 197,666
Member Distributions (60,249)
Net Income (Loss
)
67,976
Total Member Equit
y
(6,966)
Total Liabilities and Member Equity 253,761$
The Notes to the Financial Statements are an integral part of this statement.
3
Contemporary Community Solution, LLC
Statement of Income
For Year Ended December 31, 2022
Revenue
Income from Services 1,582,515$
Total Revenue 1,582,515$
Expenses
Salaries & Wages 1,035,036
Payroll Taxes 98,017
Employee Benefits 1,190
Contract Labo
r
200,591
Auto Expense 7,139
Bank Service Charges 1,309
Client Expense 48,652
Dues & Subscriptions 3,691
Insurance Expense 29,190
Interest Expense 4,947
Legal & Professiona
l
16,215
Meals 1,927
Miscellaneous 1,103
Office Supplies 12,126
Rent Expense 25,214
Repairs and Maintenance 239
Supplies 894
Taxes 8,828
Travel 4,616
Utilities 13,615
Total Expenses 1,514,539
Net Income (Loss) 67,976$
The Notes to the Financial Statements are an integral part of this statement.
4
Contemporary Community Solution, LLC
Statement of Cash Flow
For Year Ended December 31, 2022
Cash Flows from Operating Activities
Net Incom
e
67,976$
Adjustments to reconcile net income (loss) to net cas
h
provided by operating activitie
s
Increase (Decrease) in:
Accounts Receivable (32,832)
(Increase) Decrease in:
Accounts Payabl
e
1,135
Payroll Liabilitie
s
(2,542)
Prior Year Adjustmen
t
(19,863)
Total Adjustments (54,102)
Net Cash Provided (Used) by Operating Activities 13,874
Cash Flows from Investing Activities
Additional Paid-in-Capital 169,429
Member Distributions (60,249)
Net Cash Provided (Used) by Investing Activities 109,180
Cash Flows from Financing Activities
Net Debt Proceeds/Payment
s
(69,393)
Net Cash Provided (Used) by Financing Activities (69,393)
Net Increase (Decrease) in Cash 53,661
Cash and Cash Equivalents, Beginning 37,868
Cash and Cash Equivalents, Ending 91,529$
Interest Paid: 4,947$
The Notes to the Financial Statements are an integral part of this statement.
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Contemporary Community Solution, LLC
Notes to the Financial Statements
December 31, 2022
6
Note 1 - Summary of Significant Accounting Policies
Nature of Activities
Contemporary Community Solution, LLC (the Company) is a home healthcare provider licensed
through the State of Tennessee Department of Intellectual and Developmental Disabilities (DIDS).
The Company receives revenue for these services through a state-funded contract with the DIDS.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect certain reported
amounts and disclosures. Accordingly, actual results could differ from those estimates.
Basis of Accounting
The Company uses the accrual basis of accounting. Revenues are recorded when earned, and
expenses are recorded when incurred.
Tax Status
The company was organized as a Tennessee Limited Liability Company in 2018. As such, the
members’ liability is generally limited to their investment in the Company. As an LLC, the
company is general treated as a pass-through entity for federal income tax reporting purposes. As
such, taxable income is reportable by the members on their individual income tax returns;
therefore, no provision for income taxes has been recorded.
Property and Equipment
Property and equipment are recorded at cost. The Company’s capitalization policy is to review
the need for capitalization on a case-by-case basis. Depreciation is recorded over the estimated
useful lives of the assets using the straight-line method for all asset classes. As of the financial
statement date, the company owned no property or equipment.
Intangibles Amortization
Intangible assets are amortized over the estimated useful lives of the assets using the straight-line
method.
Cash Equivalents
For purposes of the Statement of Cash Flows, cash equivalents consist of short-term, highly liquid
investments which are readily convertible into cash within ninety (90) days of purchase.
Contemporary Community Solution, LLC
Notes to the Financial Statements
December 31, 2022
7
Advertising
Advertising costs are expensed as incurred.
Trade Accounts Receivable
Accounts receivable is recorded at the amount the Company expects to collect on balances
outstanding at year-end. Management closely monitors outstanding balances and writes off, as of
year-end, all balances that are not collectible at the time the financial statements are issued.
Note 2 – Accrued Compensated Absences
The Company has not accrued compensated absences because the amount cannot be reasonably
estimated.
Note 3 – Description of Leasing Arrangements
The Company leases certain buildings and space under long-term operating leases that expire over
the next three years. The following table details all of the leases entered into by the Company and
includes their end date, minimum monthly payment, and each individual future minimum lease
payments. All of the leases contain renewal options.
The following is a schedule of future minimum lease payments required under the leases:
The above leases do not meet the qualifications of ASC Topic 842, Leases, and, therefore, lease
payments are recorded as expenses
Property Description Began Ends
Montly Lease
Pmt
Future
Mini mum
Lease Pmt
Building 12/1/2020 11/30/2023 1,696 18,981
Storage Space 5/25/2021 n/a 99 n/a
1,795 18,981
Y
ear Endin
g
Dec 31, Amount
2023 18,981
Thereafter -
Total $18,981
Contemporary Community Solution, LLC
Notes to the Financial Statements
December 31, 2022
8
Note 4 – Notes Payable
Notes payable as of the financial statement date consisted of the following:
Note 5 - Vulnerability Due to Certain Concentrations
The Company’s operations are dependent on its contract with the Tennessee Department of
Intellectual Disabilities (DIDS), which is a heavily regulated environment. The operations of the
Company are subject to the administrative directives, rules, and regulations of federal, state, and
local regulatory agencies.
Note 7 – Subsequent Events
Events subsequent to the financial statement date have been reviewed and evaluated to determine
their inclusion and disclosure in the financial statements and notes to the financial statements.
Subsequent events have been evaluated through June 13, 2024, the financial statement issuance
date.
Note 8 – Prior Year Adjustment
Retained Earnings have been restated as of December 31, 2021, to reflect correction of an error in
long-term debt. The net effect of this change was a decrease of $19,863.
Balance
Line of Credit, Pinnacle Bank, at variable interest rate. Currenly paying
interest onl
y
. Matures June, 2023.
$38,377
SBA Loan Payable. This loan will remain payable until either the bank
provides a notice of forgiveness, or principal payments are made
149,900
Total $188,277
Member American Institute of Certified Public Accountants and Tennessee Society of Certified Public Accountants
9
Gregory N. Lee
Certified Public Accountant
1310 Main Street
Humboldt, TN 38343
Tel: 731-784-9452
Fax: 731-784-7751
Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
To the Members of
Contemporary Community Solution, LLC
We were engaged to audit, in accordance with the auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the financial
statements of Contemporary Community Solution, LLC(a Limited Liability Company), which
comprise the balance sheet as of December 31, 2022, and the related statements of income, and
cash flows for the year then ended, and the related notes to the financial statements, and have
issued our report thereon dated June 13, 2024. Our report disclaims an opinion on such financial
statements because we were unable to obtain sufficient appropriate audit evidence about the
amount recognized for operating expenses.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Contemporary
Community Solution, LLC’s internal control over financial reporting (internal control) as a basis
for designing audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinion on the financial statements, but not for the purpose of expressing an opinion
on the effectiveness of Contemporary Community Solution, LLC’s internal control. Accordingly,
we do not express an opinion on the effectiveness of Contemporary Community Solution, LLC’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the entity’s financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of the internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control that
might be material weaknesses or significant deficiencies and therefore, material weaknesses or
significant deficiencies may exist that were not identified. We identified certain deficiencies in
internal control, described in the accompanying schedule of findings and responses as items 2022-
001 and 2022-002 that we consider to be material weaknesses.
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Contemporary Community Solution,
LLC’s financial statements are free from material misstatement, we performed tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
Contemporary Community Solution, LLC’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on
Contemporary Community Solution, LLC’s response to the findings identified in our audit and
described in the accompanying schedule of findings and questioned costs. Contemporary
Community Solution, LLC’s response was not subjected to the other auditing procedures applied
in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
organization’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the organization’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Gregory N. Lee, CPA
Humboldt, Tennessee
June 13, 2024
Contemporary Community Solution, LLC
Schedule of Disposition of Prior Year Findings
December 31, 2022
11
Financial Statement Findings
Prior Year Finding
Number Finding Title
Status/Current
Year Finding
Number
2021-001 Se
g
re
g
ation of Duties
Repeated
2022-001
2021-002 Supportin
g
Documentation
Repeated
2022-002
2021-003
Compliance with Secretar
y
of State
Correcte
d
Contemporary Community Solution, LLC
Schedule of Findings and Responses
December 31, 2022
12
2022-001 – Segregation of Duties
Condition:
There is, in general, no segregation of duties. The same individual writes and signs all checks;
records all transactions in the accounting system; and reconciles the bank statements.
Criteria:
Duties should be sufficiently segregated to provide a good system of internal control.
Cause:
Poorly designed policies and procedures.
Effect:
Misstatements due to error or fraud could occur and not be detected.
Recommendation:
Duties should be segregated so that misstatements due to error or fraud can be prevented or
detected.
Corrective Action:
See Management’s Corrective Action Plan
2022-002 – Supporting Documentation
Condition:
Record retention is inadequate. Client could not provide documentation for support, expenses,
leases, loans, etc.
Criteria:
Internal Controls should include a system of record retention and filing.
Cause:
Poorly designed policies and procedures.
Effect:
Misstatements due to fraud or error could occur and not be detected. Inability to provide
documentation could result in substantial income taxes and penalties in the event of an IRS audit.
Contemporary Community Solution, LLC
Schedule of Findings and Responses
December 31, 2022
13
Recommendation:
Policies and procedures should be established to ensure that all supporting documentation is
retained. Invoices/receipts should be obtained for all revenue and expenditures; all
invoices/receipts should be retained and safeguarded using an alphabetical filing system that
allows documents to be located easily.
Corrective Action:
See Management’s Corrective Action Plan
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