Audit 302731

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Criteria or Specific Requirement: The CSBG Act at 42 USC 9910(b), requires that public organizations administer the CSBG program through a Tri-Partite board. Condition: Less than 1/3 of the members of the board of directors of IMPACT Community Action Partnership, Inc. were representative of the low-income sector in accordance with Community Service Block Grant (CSBG) requirements. Questioned Costs: None Effect: Due to the above noted conditions IMPACT Community Action Partnership, Inc. was not in compliance with this particular CSBG compliance requirement. Cause: IMPACT Community Action Partnership, Inc. had board vacancies and experienced board recruiting difficulties during the year, causing it to not be in compliance with the tri-partite board requirement. Repeat: No Auditor's Recommendation: We recommend IMPACT Community Action Partnership, Inc. recruit board members to comply with the tri-partite board composition requirement. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan.

Criteria or Specific Requirement: The CSBG Act at 42 USC 9910(b), requires that public organizations administer the CSBG program through a Tri-Partite board. Condition: Less than 1/3 of the members of the board of directors of IMPACT Community Action Partnership, Inc. were representative of the low-income sector in accordance with Community Service Block Grant (CSBG) requirements. Questioned Costs: None Effect: Due to the above noted conditions IMPACT Community Action Partnership, Inc. was not in compliance with this particular CSBG compliance requirement. Cause: IMPACT Community Action Partnership, Inc. had board vacancies and experienced board recruiting difficulties during the year, causing it to not be in compliance with the tri-partite board requirement. Repeat: No Auditor's Recommendation: We recommend IMPACT Community Action Partnership, Inc. recruit board members to comply with the tri-partite board composition requirement. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Condition: IMPACT does not have a written fiscal procedure for the review of journal entries. The Chief Financial Officer is responsible to preparing and posting journal entries to the general ledger. IMPACT’s practice is the Chief Operating Officer would review and approve the journal entries posted by the Chief Financial Officer. During the year ended September 30, 2022, journal entries posted by the Chief Financial Officer were not reviewed and approved by the Chief Operating Officer. During the audit, Wipfli selected 16 journal entries to observe supporting documentation was maintained for the journal entry. Supporting documentation as not maintained for 4 of the 16 entries. Management was able to reproduce the supporting documents. The Chief Financial Officer is also an authorized check signer for the agency, has access to the checks, and maintains the user rights within the accounting software. A segregation of duties does not exist within the responsibilities of the Chief Financial Officer as this role has full access to the accounting system, have physical access to IMPACT’s cash, and is an authorized check signer. Criteria or Specific Requirement: Uniform Guidance 200.303(a) states a non-federal entity must “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal 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 be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” Effect: A material weakness in internal control over financial reporting exists due to the lack of reviews surrounding journal entries, missing supporting documentation for journal entries, and a lack of segregations of duties within the Chief Financial Officer position. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel has resulted in additional responsibilities placed on the Chief Financial Officer and Chief Operating Officer. The transition to remote working has also resulted in difficulties with handling electronic documentation and approvals. Auditor's Recommendation: We recommend IMPACT implement procedures surrounding the journal entry review and approval process and review the duties assigned to the Chief Financial Officer position. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-002 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs.

Criteria or Specific Requirement: The CSBG Act at 42 USC 9910(b), requires that public organizations administer the CSBG program through a Tri-Partite board. Condition: Less than 1/3 of the members of the board of directors of IMPACT Community Action Partnership, Inc. were representative of the low-income sector in accordance with Community Service Block Grant (CSBG) requirements. Questioned Costs: None Effect: Due to the above noted conditions IMPACT Community Action Partnership, Inc. was not in compliance with this particular CSBG compliance requirement. Cause: IMPACT Community Action Partnership, Inc. had board vacancies and experienced board recruiting difficulties during the year, causing it to not be in compliance with the tri-partite board requirement. Repeat: No Auditor's Recommendation: We recommend IMPACT Community Action Partnership, Inc. recruit board members to comply with the tri-partite board composition requirement. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan.

Criteria or Specific Requirement: The CSBG Act at 42 USC 9910(b), requires that public organizations administer the CSBG program through a Tri-Partite board. Condition: Less than 1/3 of the members of the board of directors of IMPACT Community Action Partnership, Inc. were representative of the low-income sector in accordance with Community Service Block Grant (CSBG) requirements. Questioned Costs: None Effect: Due to the above noted conditions IMPACT Community Action Partnership, Inc. was not in compliance with this particular CSBG compliance requirement. Cause: IMPACT Community Action Partnership, Inc. had board vacancies and experienced board recruiting difficulties during the year, causing it to not be in compliance with the tri-partite board requirement. Repeat: No Auditor's Recommendation: We recommend IMPACT Community Action Partnership, Inc. recruit board members to comply with the tri-partite board composition requirement. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan.