Audit 316953

Federal agency: Neighborhood Reinvestment Corporation (Pass-Through Grantor) Federal program title: Housing Stability Counseling Program Assistance Listing Number: 99.U19 Award Period: September 8, 2021 – April 30, 2024 • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria: Uniform Grant Guidance requires compliance with the provisions of internal controls. 2 CFR Part 200.303 states that recipients of federal funds are required to establish and maintain effective internal control over the federal awards to provide reasonable assurance that the recipient of federal funds is in compliance with federal statutes, regulations and the terms and conditions of the federal award. The Foundation should have internal controls designed and effectively operating to ensure compliance with those provisions. Condition: The Foundation was not able to produce audit evidence of the review and approval of its financial and quarterly performance reports. Two out of two financial reports and three out of three quarterly performance reports did not have adequate evidence to show the reports were reviewed and approved. Questioned costs: None. Cause: The Foundation does not have policies and procedures in place to ensure formal documentation of review and approval of the financial and quarterly performance reports. Effect: The lack of effective internal controls over reporting compliance requirements provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend that the Foundation update its policies and procedures to ensure formal documented review and approval over financial and performance reports. Procedures must include documentation and proper sign offs from preparer and reviewer of the reports. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.

Federal agency: Neighborhood Reinvestment Corporation (Pass-Through Grantor) Federal program title: Housing Stability Counseling Program Assistance Listing Number: 99.U19 Award Period: September 8, 2021 – April 30, 2024 • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria: Uniform Grant Guidance requires compliance with the provisions of internal controls. 2 CFR Part 200.303 states that recipients of federal funds are required to establish and maintain effective internal control over the federal awards to provide reasonable assurance that the recipient of federal funds is in compliance with federal statutes, regulations and the terms and conditions of the federal award. The Foundation should have internal controls designed and effectively operating to ensure compliance with those provisions. Condition: The Foundation was not able to produce audit evidence of the review and approval of its financial and quarterly performance reports. Two out of two financial reports and three out of three quarterly performance reports did not have adequate evidence to show the reports were reviewed and approved. Questioned costs: None. Cause: The Foundation does not have policies and procedures in place to ensure formal documentation of review and approval of the financial and quarterly performance reports. Effect: The lack of effective internal controls over reporting compliance requirements provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend that the Foundation update its policies and procedures to ensure formal documented review and approval over financial and performance reports. Procedures must include documentation and proper sign offs from preparer and reviewer of the reports. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.