Audit 290359

Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of our audit, CliftonLarsonAllen LLP prepared the financial statements. Criteria or specific requirement: A well-designed system of internal control should include policies and procedures to provide management with reasonable assurance year-end reporting of financial information and related disclosures is accurate and in according with accounting principles generally accepted in the United States of America. Effect: The lack of staffing with sufficient knowledge indicates the possibility of the omission of necessary footnote disclosures consistent with generally accepted accounting principles. Cause: CliftonLarsonAllen LLP prepared the financial statements. Repeat Finding: See prior year finding 2022-001. Recommendation: The financial statement preparation process should be part of the internal control system, although the Inner Voice may be financially limited in the hiring of personnel with an up-to-date understanding of accounting preannouncements, proper mitigating factors should be reflected including oversight by management. Views of responsible officials and planned corrective actions: Management agrees with the finding. Inner Voice hired a Director of Finance with extensive experience in accounting and HR on October 16, 2023. The Director of Finance reports directly to the CFO.

Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of our audit, misstatements in the accounting record were detected as a result of audit procedures performed. An adjustment was posted by management to correct the misstatement. The corrected misstatements impacted beginning net assets without donor restrictions, revenue, accounts receivable and decreased the change in net assets by $49,377. Criteria or specific requirement: A well-designed system of internal control should include policies and procedures to provide management with reasonable assurance year-end reporting of financial information and related disclosures is accurate and in according with accounting principles generally accepted in the United States of America. Effect: Inaccurate financial reporting could adversely affect the decision-making process for the management of the Inner Voice. Cause: Accounting principles generally accepted in the United States of America were not followed over the accounting of a grants received that were unconditional. Repeat Finding: See prior finding 2022-002. Recommendation: We recommend that management review policies and procedures over year-end transactions to ensure that all necessary adjustments are being posted on a timely basis, in the appropriate period, and in accordance with generally accepted accounting principles. Views of responsible officials and planned corrective actions: Management agrees with the finding. Management will be reviewing policies and procedures in the month of May every year. Additionally, the Director of Finance has been hired and joined Inner Voice effective October 16, 2023. The additional member of the finance department will allow for stronger internal controls and segregation of duties.

Federal Agency: Department of Veterans Affairs Federal Program Name: VA Homeless Providers Grant and Per Diem Program Assistance Listing Number: 64.024 Federal Award Identification Number and Year: INNV143-1419-537-PD-21; INNV143-1620-537-TP-21; INNV143-1075-537-CM20; INNV143-2290-537-CM-22 Award Period: 10/1/20-9/30/21; 10/1/21-9/30/22; 10/1/20-9/30/23 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: Inner Voice is required to have documented procurement policies and procedures which comply with the compliance requirement UG §200.318 general procurement standards, UG §200.319 competition, and §200.320 methods of procurement to be followed. Condition: The Inner Voice did not have formal policies and procedures over procurement for the period July 1, 2022, through March 31, 2023. Questioned costs: Unknown. Context: The Inner Voice did not have formal policies and procedures over procurement to ensure requirements are met and properly documented the period July 1, 2022, through March 31, 2023. Cause: The current policy was not updated to comply with compliance requirement UG §200.318 general procurement standards, UG §200.319 competition, and §200.320 methods of procurement until April 1, 2023. Effect: Possible payment of federal funds to vendors that did not properly go through the required procurement steps in accordance with Uniform Guidance. Repeat Finding: See prior year finding 2022-005. Recommendation: The Inner Voice should implement a procurement policy and procedure that includes the selection and documentation of procurement rationale, controls and oversight. This policy should be followed for all procurement transactions and include compliance requirements UG §200.318 general procurement standards, UG §200.319 competition, and §200.320 methods of procurement. Views of responsible officials and planned corrective actions: Management agrees with the finding. Procurement policy in accordance with Uniform Guidance was implemented and effective as of April 1, 2023. The policy will be reviewed and updated as needed on an annual basis.

Federal Agency: Department of Veterans Affairs Federal Program Name: VA Homeless Providers Grant and Per Diem Program Assistance Listing Number: 64.024 Federal Award Identification Number and Year: INNV143-1419-537-PD-21; INNV143-1620-537-TP-21; INNV143-1075-537-CM20; INNV143-2290-537-CM-22 Award Period: 10/1/20-9/30/21; 10/1/21-9/30/22; 10/1/20-9/30/23 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: When Inner Voice enters a covered transaction with an entity at a lower tier, Inner Voice must verify that the non-Federal entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: In testing the suspension and debarment requirement, it was noted not all certifications with vendors were obtained prior to executing the procurement contract. Questioned costs: None. Context: We noted two out of five procurement transactions tested, suspension and/or debarment certifications were not obtained prior to executing the transaction. Cause: The Inner Voice was not aware of the need to verify non-Federal entities were not suspended or debarred prior to procurement. Effect: By not obtaining proper suspension and debarment certifications, Inner Voice runs the risk of securing a contract with a vendor who is suspended or debarred. Repeat Finding: This is not a repeat finding. Recommendation: We recommend Inner Voice verify all procurement contracts are with vendors who are not suspended or debarred. This verification may be accomplished by: 1. Checking the System for Award Management (SAM) Exclusions 2. Collecting a certification form, or 3. Adding a clause or condition to the covered transaction with that entity Views of responsible officials and planned corrective actions: Management agrees with the finding. Vendors who reached $20,000 in payments during the fiscal year will be reviewed in SAM for exclusions prior to procurement.

Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of our audit, CliftonLarsonAllen LLP prepared the financial statements. Criteria or specific requirement: A well-designed system of internal control should include policies and procedures to provide management with reasonable assurance year-end reporting of financial information and related disclosures is accurate and in according with accounting principles generally accepted in the United States of America. Effect: The lack of staffing with sufficient knowledge indicates the possibility of the omission of necessary footnote disclosures consistent with generally accepted accounting principles. Cause: CliftonLarsonAllen LLP prepared the financial statements. Repeat Finding: See prior year finding 2022-001. Recommendation: The financial statement preparation process should be part of the internal control system, although the Inner Voice may be financially limited in the hiring of personnel with an up-to-date understanding of accounting preannouncements, proper mitigating factors should be reflected including oversight by management. Views of responsible officials and planned corrective actions: Management agrees with the finding. Inner Voice hired a Director of Finance with extensive experience in accounting and HR on October 16, 2023. The Director of Finance reports directly to the CFO.

Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of our audit, misstatements in the accounting record were detected as a result of audit procedures performed. An adjustment was posted by management to correct the misstatement. The corrected misstatements impacted beginning net assets without donor restrictions, revenue, accounts receivable and decreased the change in net assets by $49,377. Criteria or specific requirement: A well-designed system of internal control should include policies and procedures to provide management with reasonable assurance year-end reporting of financial information and related disclosures is accurate and in according with accounting principles generally accepted in the United States of America. Effect: Inaccurate financial reporting could adversely affect the decision-making process for the management of the Inner Voice. Cause: Accounting principles generally accepted in the United States of America were not followed over the accounting of a grants received that were unconditional. Repeat Finding: See prior finding 2022-002. Recommendation: We recommend that management review policies and procedures over year-end transactions to ensure that all necessary adjustments are being posted on a timely basis, in the appropriate period, and in accordance with generally accepted accounting principles. Views of responsible officials and planned corrective actions: Management agrees with the finding. Management will be reviewing policies and procedures in the month of May every year. Additionally, the Director of Finance has been hired and joined Inner Voice effective October 16, 2023. The additional member of the finance department will allow for stronger internal controls and segregation of duties.

Federal Agency: Department of Veterans Affairs Federal Program Name: VA Homeless Providers Grant and Per Diem Program Assistance Listing Number: 64.024 Federal Award Identification Number and Year: INNV143-1419-537-PD-21; INNV143-1620-537-TP-21; INNV143-1075-537-CM20; INNV143-2290-537-CM-22 Award Period: 10/1/20-9/30/21; 10/1/21-9/30/22; 10/1/20-9/30/23 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: Inner Voice is required to have documented procurement policies and procedures which comply with the compliance requirement UG §200.318 general procurement standards, UG §200.319 competition, and §200.320 methods of procurement to be followed. Condition: The Inner Voice did not have formal policies and procedures over procurement for the period July 1, 2022, through March 31, 2023. Questioned costs: Unknown. Context: The Inner Voice did not have formal policies and procedures over procurement to ensure requirements are met and properly documented the period July 1, 2022, through March 31, 2023. Cause: The current policy was not updated to comply with compliance requirement UG §200.318 general procurement standards, UG §200.319 competition, and §200.320 methods of procurement until April 1, 2023. Effect: Possible payment of federal funds to vendors that did not properly go through the required procurement steps in accordance with Uniform Guidance. Repeat Finding: See prior year finding 2022-005. Recommendation: The Inner Voice should implement a procurement policy and procedure that includes the selection and documentation of procurement rationale, controls and oversight. This policy should be followed for all procurement transactions and include compliance requirements UG §200.318 general procurement standards, UG §200.319 competition, and §200.320 methods of procurement. Views of responsible officials and planned corrective actions: Management agrees with the finding. Procurement policy in accordance with Uniform Guidance was implemented and effective as of April 1, 2023. The policy will be reviewed and updated as needed on an annual basis.

Federal Agency: Department of Veterans Affairs Federal Program Name: VA Homeless Providers Grant and Per Diem Program Assistance Listing Number: 64.024 Federal Award Identification Number and Year: INNV143-1419-537-PD-21; INNV143-1620-537-TP-21; INNV143-1075-537-CM20; INNV143-2290-537-CM-22 Award Period: 10/1/20-9/30/21; 10/1/21-9/30/22; 10/1/20-9/30/23 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: When Inner Voice enters a covered transaction with an entity at a lower tier, Inner Voice must verify that the non-Federal entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Condition: In testing the suspension and debarment requirement, it was noted not all certifications with vendors were obtained prior to executing the procurement contract. Questioned costs: None. Context: We noted two out of five procurement transactions tested, suspension and/or debarment certifications were not obtained prior to executing the transaction. Cause: The Inner Voice was not aware of the need to verify non-Federal entities were not suspended or debarred prior to procurement. Effect: By not obtaining proper suspension and debarment certifications, Inner Voice runs the risk of securing a contract with a vendor who is suspended or debarred. Repeat Finding: This is not a repeat finding. Recommendation: We recommend Inner Voice verify all procurement contracts are with vendors who are not suspended or debarred. This verification may be accomplished by: 1. Checking the System for Award Management (SAM) Exclusions 2. Collecting a certification form, or 3. Adding a clause or condition to the covered transaction with that entity Views of responsible officials and planned corrective actions: Management agrees with the finding. Vendors who reached $20,000 in payments during the fiscal year will be reviewed in SAM for exclusions prior to procurement.