Audit 306556

Finding 2023-001 – Significant Deficiency Award No.: 16.575, Crime Victim Assistance Federal Grantor: U.S. Department of Justice, Office for Victims of Crime Compliance Requirement: Other compliance requirements. Condition: The schedule of Expenditures of Federal Awards (SEFA) was not complete, and expenditures reported on the SEFA were revised during the single audit. Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.502 states, “The auditee should prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements.” Internal controls over the SEFA should be in place ensure accrual basis expenses incurred under the federal program are properly reported as expenses on the SEFA and are properly reported as revenue in the financial statements prior to the start of the single audit. Cause: SEFA was not fully reconciled and finalized until after the single audit began. Effect: The expenses included on the SEFA were revised during the single audit, which could have resulted in the auditor not selecting the correct major program or expenses for testing and could have resulted in the single audit not satisfying the requirements of the Uniform Guidance. Recommendation: We recommend additional review procedures be implemented to ensure the SEFA is complete and accurate when the single audit begins. Views of Responsible Officials and Planned Corrective Actions: Management’s response and planned corrective action is included in the Corrective Action Plan included at the end of the report.

Finding 2023-002 – Significant Deficiency Federal Grantor: U.S. Department of Justice Passed-through: California Governor’s Office of Emergency Services Pass-through Grantor’s No.: Various Compliance Requirement: Reporting Condition: The Organization submitted its Audited Financial Statements and Single Audit Report to the federal clearinghouse in May 2024, 2 months after it was due. Criteria: The Organization was required to submit its Audited Financial Statements and Single Audit Report to the federal audit clearinghouse no later than March 31, 2024, nine months after the fiscal year-end (2 Code of Federal Regulations §200.512). Effect: Federal awarding agencies may deny future federal awards or subject the Organization to additional cash monitoring requirements. This finding was not a result of internal control over individual federal programs and, accordingly, did not have a direct and material effect on the reporting requirements over the Organization’s major federal programs. Cause: The Organization failed to prepare its Audited Financial Statements and Schedule of Expenditures of Federal Awards in a timely manner due to turnover in personnel. Recommendation: The Organization needs to ensure that it can close its books and submit its audited financial statements and single audit to the federal audit clearinghouse no later than the statutory reporting deadline. Management’s Response: Management’s response to the finding is discussed in the attached Corrective Action Plan.

Finding 2023-001 – Significant Deficiency Award No.: 16.575, Crime Victim Assistance Federal Grantor: U.S. Department of Justice, Office for Victims of Crime Compliance Requirement: Other compliance requirements. Condition: The schedule of Expenditures of Federal Awards (SEFA) was not complete, and expenditures reported on the SEFA were revised during the single audit. Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.502 states, “The auditee should prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements.” Internal controls over the SEFA should be in place ensure accrual basis expenses incurred under the federal program are properly reported as expenses on the SEFA and are properly reported as revenue in the financial statements prior to the start of the single audit. Cause: SEFA was not fully reconciled and finalized until after the single audit began. Effect: The expenses included on the SEFA were revised during the single audit, which could have resulted in the auditor not selecting the correct major program or expenses for testing and could have resulted in the single audit not satisfying the requirements of the Uniform Guidance. Recommendation: We recommend additional review procedures be implemented to ensure the SEFA is complete and accurate when the single audit begins. Views of Responsible Officials and Planned Corrective Actions: Management’s response and planned corrective action is included in the Corrective Action Plan included at the end of the report.

Finding 2023-002 – Significant Deficiency Federal Grantor: U.S. Department of Justice Passed-through: California Governor’s Office of Emergency Services Pass-through Grantor’s No.: Various Compliance Requirement: Reporting Condition: The Organization submitted its Audited Financial Statements and Single Audit Report to the federal clearinghouse in May 2024, 2 months after it was due. Criteria: The Organization was required to submit its Audited Financial Statements and Single Audit Report to the federal audit clearinghouse no later than March 31, 2024, nine months after the fiscal year-end (2 Code of Federal Regulations §200.512). Effect: Federal awarding agencies may deny future federal awards or subject the Organization to additional cash monitoring requirements. This finding was not a result of internal control over individual federal programs and, accordingly, did not have a direct and material effect on the reporting requirements over the Organization’s major federal programs. Cause: The Organization failed to prepare its Audited Financial Statements and Schedule of Expenditures of Federal Awards in a timely manner due to turnover in personnel. Recommendation: The Organization needs to ensure that it can close its books and submit its audited financial statements and single audit to the federal audit clearinghouse no later than the statutory reporting deadline. Management’s Response: Management’s response to the finding is discussed in the attached Corrective Action Plan.