Audit 309553

Finding 2023-101 — Timeliness of Subrecipient Payments – Significant Deficiency in Internal Controls over Compliance (Special Tests) Federal program information: Funding agencies: U.S. Department of Housing and Urban Development Titles: Emergency Shelter Grants Program Assistance Listing Number: 14.231 Award numbers: C21-0580, 154900, 152126-0, ADES18-206228 Pass-Through grantors: City of Glendale, Arizona, City of Phoenix, Arizona and Arizona Department of Economic Security Compliance Requirements: Special Tests – Payments to Subrecipients Questioned Costs: N/A Criteria: Code of Federal Regulations § 576.203(c) Obligation, expenditure and payment requirements state that recipients of ESG funds must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For 8 of 30 subrecipient payments selected for review it was noted that the payments were not made within the 30 day allowable period. Per discussion with management it was determined that the payments were not made within the time limit as a result of missing or inaccurate information in the subrecipient’s drawdown requests. However, no additional documentation could be provided to show that items were missing from the drawdown requests. Cause and Effect: The organization does not have adequate policies and procedures in place to document the subrecipient drawdown review and they did not maintain adequate supporting documentation to show draw down requests were incomplete. The result is that there is increased chance of non-compliance with the requirements of the grant. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that drawdown requests are documented when received and should maintain adequate documentation to substantiate delays in payments made to subrecipients.

Finding 2023-101 — Timeliness of Subrecipient Payments – Significant Deficiency in Internal Controls over Compliance (Special Tests) Federal program information: Funding agencies: U.S. Department of Housing and Urban Development Titles: Emergency Shelter Grants Program Assistance Listing Number: 14.231 Award numbers: C21-0580, 154900, 152126-0, ADES18-206228 Pass-Through grantors: City of Glendale, Arizona, City of Phoenix, Arizona and Arizona Department of Economic Security Compliance Requirements: Special Tests – Payments to Subrecipients Questioned Costs: N/A Criteria: Code of Federal Regulations § 576.203(c) Obligation, expenditure and payment requirements state that recipients of ESG funds must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For 8 of 30 subrecipient payments selected for review it was noted that the payments were not made within the 30 day allowable period. Per discussion with management it was determined that the payments were not made within the time limit as a result of missing or inaccurate information in the subrecipient’s drawdown requests. However, no additional documentation could be provided to show that items were missing from the drawdown requests. Cause and Effect: The organization does not have adequate policies and procedures in place to document the subrecipient drawdown review and they did not maintain adequate supporting documentation to show draw down requests were incomplete. The result is that there is increased chance of non-compliance with the requirements of the grant. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that drawdown requests are documented when received and should maintain adequate documentation to substantiate delays in payments made to subrecipients.

Finding 2023-101 — Timeliness of Subrecipient Payments – Significant Deficiency in Internal Controls over Compliance (Special Tests) Federal program information: Funding agencies: U.S. Department of Housing and Urban Development Titles: Emergency Shelter Grants Program Assistance Listing Number: 14.231 Award numbers: C21-0580, 154900, 152126-0, ADES18-206228 Pass-Through grantors: City of Glendale, Arizona, City of Phoenix, Arizona and Arizona Department of Economic Security Compliance Requirements: Special Tests – Payments to Subrecipients Questioned Costs: N/A Criteria: Code of Federal Regulations § 576.203(c) Obligation, expenditure and payment requirements state that recipients of ESG funds must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For 8 of 30 subrecipient payments selected for review it was noted that the payments were not made within the 30 day allowable period. Per discussion with management it was determined that the payments were not made within the time limit as a result of missing or inaccurate information in the subrecipient’s drawdown requests. However, no additional documentation could be provided to show that items were missing from the drawdown requests. Cause and Effect: The organization does not have adequate policies and procedures in place to document the subrecipient drawdown review and they did not maintain adequate supporting documentation to show draw down requests were incomplete. The result is that there is increased chance of non-compliance with the requirements of the grant. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that drawdown requests are documented when received and should maintain adequate documentation to substantiate delays in payments made to subrecipients.

Finding 2023-101 — Timeliness of Subrecipient Payments – Significant Deficiency in Internal Controls over Compliance (Special Tests) Federal program information: Funding agencies: U.S. Department of Housing and Urban Development Titles: Emergency Shelter Grants Program Assistance Listing Number: 14.231 Award numbers: C21-0580, 154900, 152126-0, ADES18-206228 Pass-Through grantors: City of Glendale, Arizona, City of Phoenix, Arizona and Arizona Department of Economic Security Compliance Requirements: Special Tests – Payments to Subrecipients Questioned Costs: N/A Criteria: Code of Federal Regulations § 576.203(c) Obligation, expenditure and payment requirements state that recipients of ESG funds must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For 8 of 30 subrecipient payments selected for review it was noted that the payments were not made within the 30 day allowable period. Per discussion with management it was determined that the payments were not made within the time limit as a result of missing or inaccurate information in the subrecipient’s drawdown requests. However, no additional documentation could be provided to show that items were missing from the drawdown requests. Cause and Effect: The organization does not have adequate policies and procedures in place to document the subrecipient drawdown review and they did not maintain adequate supporting documentation to show draw down requests were incomplete. The result is that there is increased chance of non-compliance with the requirements of the grant. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that drawdown requests are documented when received and should maintain adequate documentation to substantiate delays in payments made to subrecipients.

Finding 2023-102 — Procurement – Significant Deficiency in Internal Controls over Compliance (Procurement) Federal program information: Funding agencies: U.S. Department of Treasury Titles: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award numbers: GR-ARPA-CASS-010123-01 Pass-Through grantors: Arizona Governor’s Office Compliance Requirements: Procurement Questioned Costs: N/A Criteria: The Coronavirus State and Local Fiscal Recovery grant requires that the organization obtain and maintain procurement documentation to ensure price quotes are obtained or document the need for a sole source vendor. Condition: For 1 of 3 vendors selected for testwork documentation could not be provided to support the methods and evaluation of the vendor selection process. The purchase was a large purchase requiring bids to be obtained. Cause and Effect: Due to the turnover in the department the documentation could not be located. The lack of a strong centralized procurement process, and the failure to adhere to established controls, subjects the Organization to the risk that inappropriate vendor contracts will be approved. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that documentation is obtained and maintained regarding the procurement process and vendor selection.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

Finding 2023-101 — Timeliness of Subrecipient Payments – Significant Deficiency in Internal Controls over Compliance (Special Tests) Federal program information: Funding agencies: U.S. Department of Housing and Urban Development Titles: Emergency Shelter Grants Program Assistance Listing Number: 14.231 Award numbers: C21-0580, 154900, 152126-0, ADES18-206228 Pass-Through grantors: City of Glendale, Arizona, City of Phoenix, Arizona and Arizona Department of Economic Security Compliance Requirements: Special Tests – Payments to Subrecipients Questioned Costs: N/A Criteria: Code of Federal Regulations § 576.203(c) Obligation, expenditure and payment requirements state that recipients of ESG funds must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For 8 of 30 subrecipient payments selected for review it was noted that the payments were not made within the 30 day allowable period. Per discussion with management it was determined that the payments were not made within the time limit as a result of missing or inaccurate information in the subrecipient’s drawdown requests. However, no additional documentation could be provided to show that items were missing from the drawdown requests. Cause and Effect: The organization does not have adequate policies and procedures in place to document the subrecipient drawdown review and they did not maintain adequate supporting documentation to show draw down requests were incomplete. The result is that there is increased chance of non-compliance with the requirements of the grant. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that drawdown requests are documented when received and should maintain adequate documentation to substantiate delays in payments made to subrecipients.

Finding 2023-101 — Timeliness of Subrecipient Payments – Significant Deficiency in Internal Controls over Compliance (Special Tests) Federal program information: Funding agencies: U.S. Department of Housing and Urban Development Titles: Emergency Shelter Grants Program Assistance Listing Number: 14.231 Award numbers: C21-0580, 154900, 152126-0, ADES18-206228 Pass-Through grantors: City of Glendale, Arizona, City of Phoenix, Arizona and Arizona Department of Economic Security Compliance Requirements: Special Tests – Payments to Subrecipients Questioned Costs: N/A Criteria: Code of Federal Regulations § 576.203(c) Obligation, expenditure and payment requirements state that recipients of ESG funds must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For 8 of 30 subrecipient payments selected for review it was noted that the payments were not made within the 30 day allowable period. Per discussion with management it was determined that the payments were not made within the time limit as a result of missing or inaccurate information in the subrecipient’s drawdown requests. However, no additional documentation could be provided to show that items were missing from the drawdown requests. Cause and Effect: The organization does not have adequate policies and procedures in place to document the subrecipient drawdown review and they did not maintain adequate supporting documentation to show draw down requests were incomplete. The result is that there is increased chance of non-compliance with the requirements of the grant. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that drawdown requests are documented when received and should maintain adequate documentation to substantiate delays in payments made to subrecipients.

Finding 2023-101 — Timeliness of Subrecipient Payments – Significant Deficiency in Internal Controls over Compliance (Special Tests) Federal program information: Funding agencies: U.S. Department of Housing and Urban Development Titles: Emergency Shelter Grants Program Assistance Listing Number: 14.231 Award numbers: C21-0580, 154900, 152126-0, ADES18-206228 Pass-Through grantors: City of Glendale, Arizona, City of Phoenix, Arizona and Arizona Department of Economic Security Compliance Requirements: Special Tests – Payments to Subrecipients Questioned Costs: N/A Criteria: Code of Federal Regulations § 576.203(c) Obligation, expenditure and payment requirements state that recipients of ESG funds must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For 8 of 30 subrecipient payments selected for review it was noted that the payments were not made within the 30 day allowable period. Per discussion with management it was determined that the payments were not made within the time limit as a result of missing or inaccurate information in the subrecipient’s drawdown requests. However, no additional documentation could be provided to show that items were missing from the drawdown requests. Cause and Effect: The organization does not have adequate policies and procedures in place to document the subrecipient drawdown review and they did not maintain adequate supporting documentation to show draw down requests were incomplete. The result is that there is increased chance of non-compliance with the requirements of the grant. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that drawdown requests are documented when received and should maintain adequate documentation to substantiate delays in payments made to subrecipients.

Finding 2023-101 — Timeliness of Subrecipient Payments – Significant Deficiency in Internal Controls over Compliance (Special Tests) Federal program information: Funding agencies: U.S. Department of Housing and Urban Development Titles: Emergency Shelter Grants Program Assistance Listing Number: 14.231 Award numbers: C21-0580, 154900, 152126-0, ADES18-206228 Pass-Through grantors: City of Glendale, Arizona, City of Phoenix, Arizona and Arizona Department of Economic Security Compliance Requirements: Special Tests – Payments to Subrecipients Questioned Costs: N/A Criteria: Code of Federal Regulations § 576.203(c) Obligation, expenditure and payment requirements state that recipients of ESG funds must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For 8 of 30 subrecipient payments selected for review it was noted that the payments were not made within the 30 day allowable period. Per discussion with management it was determined that the payments were not made within the time limit as a result of missing or inaccurate information in the subrecipient’s drawdown requests. However, no additional documentation could be provided to show that items were missing from the drawdown requests. Cause and Effect: The organization does not have adequate policies and procedures in place to document the subrecipient drawdown review and they did not maintain adequate supporting documentation to show draw down requests were incomplete. The result is that there is increased chance of non-compliance with the requirements of the grant. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that drawdown requests are documented when received and should maintain adequate documentation to substantiate delays in payments made to subrecipients.

Finding 2023-102 — Procurement – Significant Deficiency in Internal Controls over Compliance (Procurement) Federal program information: Funding agencies: U.S. Department of Treasury Titles: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award numbers: GR-ARPA-CASS-010123-01 Pass-Through grantors: Arizona Governor’s Office Compliance Requirements: Procurement Questioned Costs: N/A Criteria: The Coronavirus State and Local Fiscal Recovery grant requires that the organization obtain and maintain procurement documentation to ensure price quotes are obtained or document the need for a sole source vendor. Condition: For 1 of 3 vendors selected for testwork documentation could not be provided to support the methods and evaluation of the vendor selection process. The purchase was a large purchase requiring bids to be obtained. Cause and Effect: Due to the turnover in the department the documentation could not be located. The lack of a strong centralized procurement process, and the failure to adhere to established controls, subjects the Organization to the risk that inappropriate vendor contracts will be approved. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that documentation is obtained and maintained regarding the procurement process and vendor selection.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.

over Compliance (Reporting) Federal program information: Funding agencies: U.S. Department of Treasury, U.S. Department of Housing and Urban Development Titles: Community Development Block Grants/Entitlement Grants Funds, Emergency Shelter Grants Program, Coronavirus State and Local Fiscal Recovery Assistance Listing Number: 14.218, 14.231, 21.027 Award numbers: Multiple Pass-Through grantors: Multiple Compliance Requirements: Reporting Questioned Costs: N/A Criteria: The terms of the Department’s federally funded grants and contracts and the Uniform Guidance require the submission of a single audit reporting package to the Federal Audit Clearinghouse within nine months of the auditees’ fiscal year. Condition: The Department’s single audit reporting package for the fiscal year ended June 30, 2023, was not submitted to the Federal Audit Clearinghouse within nine months after the organization’s year-end. Cause and Effect: Due to the turnover in the organization, there were delays in completing the year-end close of the financial statements and SEFA. The audit firm was also not able to complete the audit within the short engagement time frame. The effect is untimely submission of the single audit reporting package to the Federal Audit Clearinghouse resulting in noncompliance with federal requirements. Auditors’ Recommendations: The organization should evaluate its resources necessary to complete the year-end closing and financial reporting process and consider the need to devote additional resources to the financial reporting process. Doing so will improve the timeliness of the organization’s submittal to the Federal Audit Clearinghouse.