Audit 20813

Condition The Organization did not have controls properly implemented to ensure that federal grant revenue was recorded accurately. Criteria Generally accepted accounting principles requires revenues to be recorded when earned. Context Our audit procedures detected, misstatements to revenue related to Crime Victims Assistance for expenditures incurred in the prior period. The result was an understatement of revenue for cost-reimburseable expenditures in the prior fiscal year and an overstatement of revenue in the current fiscal year in the amount of $19,501. Effect Revenue was over stated in the current fiscal year and the auditor recorded adjustments to correct the error. Cause The Organization's internal controls over financial reporting did not ensure that revenue was recorded in the proper p Recommendation that revenue is recognized when federal expenditures under cost reimbursement contracta are reported when incurred. Management Response After further discussion with the auditor and grant program management, the Organization understands the justification underlying the finding identified, as the finding is required by nature of the fact that there were adjustments to the Organization?s financial statements made during, and as a result of, the audit. The Organization acknowledges this finding and understands the continued need to ensure proper reporting of financial statements, including the need to incorporate the adjustments made during this review.

Reference Number: 2022-002 Prior Year Finding: N/A Federal Agency: U.S. Department of Justice State Agency: California Governor's Office of Emergency Services Federal Program: Crime Victim Assistance - COVID 19 Assistance Listing Number: 16.575 Award Number and Year: N/A Compliance Requirement: Reporting: Schedule of Expenditures of Federal Awards Type of Finding Deficiency Criteria or specific requirement: Questioned Costs: Undetermined COMMUNITY RESOURCE CENTER SCHEDULE OF FINDINGS AND QUESTIONED COSTS June 30, 2022 Control: Per 2 CFR section 200.303(a), a nonfederal entity must: Establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should comply with the guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control-Integrated Framework," issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee?s financial statements which must include the total federal awards expended as determined in accordance with Section 200.502. The schedule must list individual federal programs by federal agency and provide total federal awards expended for each individual federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. Condition: The Schedule of Expenditures of Federal Awards (SEFA) submitted to auditors for test work was missing expenditures for a program which was later determined to be part of major Type A program. Context: When reconciling the SEFA submitted to auditors during test work, it was discovered that approximately $28,000 in expenditures for assistance listing 16.575-Crime Victim Assistance - COVID had been omitted. After the error was detected, this program was determined to be part of major Type A program. Cause: Procedures and internal controls were not sufficient to ensure that expenditures were properly reported on the SEFA. Effect: Federal expenditures were incorrectly compiled and not reported on the SEFA which was used to determine Type A and Type B programs for the FY 2022 Single Audit. Recommendation: We recommend that Accounting and Grant Management improve its SEFA compilation process to ensure that program expenditures reported on the SEFA are complete and accurate. Procedures and controls should include a process to identify contracts that are new and ensure they are included on the SEFA. 38 Section III ? Findings and Questioned Costs ? Major Federal Programs COMMUNITY RESOURCE CENTER SCHEDULE OF FINDINGS AND QUESTIONED COSTS June 30, 2022 Views of Responsible Officials: The Organization acknowledges and accepts this finding. The Organization regards this finding as an isolated incident specific to COVID-19 contracts that were erroneously not designated as government contracts. The Organization has implemented a full review of the contracts at year end to make sure all expenses are assigned to a funder code in the accounting system. In additional, as a final control procedure, Accounting will run a final report for all contracts that have been identified as federal vs actual invoiced expenditures and further compared to what has been expensed per the financial statements and provide to the Chief Program Officer to compare and reconcile to the SEFA. 39

Condition The Organization did not have controls properly implemented to ensure that federal grant revenue was recorded accurately. Criteria Generally accepted accounting principles requires revenues to be recorded when earned. Context Our audit procedures detected, misstatements to revenue related to Crime Victims Assistance for expenditures incurred in the prior period. The result was an understatement of revenue for cost-reimburseable expenditures in the prior fiscal year and an overstatement of revenue in the current fiscal year in the amount of $19,501. Effect Revenue was over stated in the current fiscal year and the auditor recorded adjustments to correct the error. Cause The Organization's internal controls over financial reporting did not ensure that revenue was recorded in the proper p Recommendation that revenue is recognized when federal expenditures under cost reimbursement contracta are reported when incurred. Management Response After further discussion with the auditor and grant program management, the Organization understands the justification underlying the finding identified, as the finding is required by nature of the fact that there were adjustments to the Organization?s financial statements made during, and as a result of, the audit. The Organization acknowledges this finding and understands the continued need to ensure proper reporting of financial statements, including the need to incorporate the adjustments made during this review.

Reference Number: 2022-002 Prior Year Finding: N/A Federal Agency: U.S. Department of Justice State Agency: California Governor's Office of Emergency Services Federal Program: Crime Victim Assistance - COVID 19 Assistance Listing Number: 16.575 Award Number and Year: N/A Compliance Requirement: Reporting: Schedule of Expenditures of Federal Awards Type of Finding Deficiency Criteria or specific requirement: Questioned Costs: Undetermined COMMUNITY RESOURCE CENTER SCHEDULE OF FINDINGS AND QUESTIONED COSTS June 30, 2022 Control: Per 2 CFR section 200.303(a), a nonfederal entity must: Establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should comply with the guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control-Integrated Framework," issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee?s financial statements which must include the total federal awards expended as determined in accordance with Section 200.502. The schedule must list individual federal programs by federal agency and provide total federal awards expended for each individual federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. Condition: The Schedule of Expenditures of Federal Awards (SEFA) submitted to auditors for test work was missing expenditures for a program which was later determined to be part of major Type A program. Context: When reconciling the SEFA submitted to auditors during test work, it was discovered that approximately $28,000 in expenditures for assistance listing 16.575-Crime Victim Assistance - COVID had been omitted. After the error was detected, this program was determined to be part of major Type A program. Cause: Procedures and internal controls were not sufficient to ensure that expenditures were properly reported on the SEFA. Effect: Federal expenditures were incorrectly compiled and not reported on the SEFA which was used to determine Type A and Type B programs for the FY 2022 Single Audit. Recommendation: We recommend that Accounting and Grant Management improve its SEFA compilation process to ensure that program expenditures reported on the SEFA are complete and accurate. Procedures and controls should include a process to identify contracts that are new and ensure they are included on the SEFA. 38 Section III ? Findings and Questioned Costs ? Major Federal Programs COMMUNITY RESOURCE CENTER SCHEDULE OF FINDINGS AND QUESTIONED COSTS June 30, 2022 Views of Responsible Officials: The Organization acknowledges and accepts this finding. The Organization regards this finding as an isolated incident specific to COVID-19 contracts that were erroneously not designated as government contracts. The Organization has implemented a full review of the contracts at year end to make sure all expenses are assigned to a funder code in the accounting system. In additional, as a final control procedure, Accounting will run a final report for all contracts that have been identified as federal vs actual invoiced expenditures and further compared to what has been expensed per the financial statements and provide to the Chief Program Officer to compare and reconcile to the SEFA. 39