Audit 321137

Section III – Federal Award Findings and Questioned Costs Finding Number 2019-001: Represents a material weakness in internal control over compliance with Community and Family Services, Inc.'s major federal programs. Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 condition - Throughout the course of the audit, Wipfli, LLP. noted that several significant accounts were not reconciled in an accurate or timely manner. As a result, material adjusting journal entries needed to be posted to the general ledger to accurately report account balances. Specifically, Wipfli LLP. proposed seven material journal entries including a prior period adjustment which changed grants receivable, inventory, property and equipment, deferred revenue, net assets, grant revenue and various expense accounts totaling $1,077,141. In addition, Wipfli,LLP prepared the financial statements due to management's inability to provide financial statements in accordance with generally accepted accounting principles generally accepted in the United States (GAAP). Criteria - Management is responsible for designing and implementing fiscal policies and procedures that result in accurate account balances that can be used to prepare financial statements. Management is also responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with GAAP. Effect or Potential Effects - As a result of the material adjusting journal entries and Wipfli, LLP preparing the financial statements, the Organization has a material weakness in internal control and compliance over financial reporting. Cause - The Organization has had turnover and has limited staff working in the accounting office. Auditor's Recommendation - We recommend that the Organization strengthen their controls around year end close reporting. Management should review and reconcile all statement of financial position accounts at least annually. Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Official - The Organization agrees with the finding and will investigate if this can be addressed internally by management.

Section III – Federal Award Findings and Questioned Costs Finding Number 2019-001: Represents a material weakness in internal control over compliance with Community and Family Services, Inc.'s major federal programs. Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 condition - Throughout the course of the audit, Wipfli, LLP. noted that several significant accounts were not reconciled in an accurate or timely manner. As a result, material adjusting journal entries needed to be posted to the general ledger to accurately report account balances. Specifically, Wipfli LLP. proposed seven material journal entries including a prior period adjustment which changed grants receivable, inventory, property and equipment, deferred revenue, net assets, grant revenue and various expense accounts totaling $1,077,141. In addition, Wipfli,LLP prepared the financial statements due to management's inability to provide financial statements in accordance with generally accepted accounting principles generally accepted in the United States (GAAP). Criteria - Management is responsible for designing and implementing fiscal policies and procedures that result in accurate account balances that can be used to prepare financial statements. Management is also responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with GAAP. Effect or Potential Effects - As a result of the material adjusting journal entries and Wipfli, LLP preparing the financial statements, the Organization has a material weakness in internal control and compliance over financial reporting. Cause - The Organization has had turnover and has limited staff working in the accounting office. Auditor's Recommendation - We recommend that the Organization strengthen their controls around year end close reporting. Management should review and reconcile all statement of financial position accounts at least annually. Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Official - The Organization agrees with the finding and will investigate if this can be addressed internally by management.

Section III – Federal Award Findings and Questioned Costs Finding Number 2019-001: Represents a material weakness in internal control over compliance with Community and Family Services, Inc.'s major federal programs. Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 condition - Throughout the course of the audit, Wipfli, LLP. noted that several significant accounts were not reconciled in an accurate or timely manner. As a result, material adjusting journal entries needed to be posted to the general ledger to accurately report account balances. Specifically, Wipfli LLP. proposed seven material journal entries including a prior period adjustment which changed grants receivable, inventory, property and equipment, deferred revenue, net assets, grant revenue and various expense accounts totaling $1,077,141. In addition, Wipfli,LLP prepared the financial statements due to management's inability to provide financial statements in accordance with generally accepted accounting principles generally accepted in the United States (GAAP). Criteria - Management is responsible for designing and implementing fiscal policies and procedures that result in accurate account balances that can be used to prepare financial statements. Management is also responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with GAAP. Effect or Potential Effects - As a result of the material adjusting journal entries and Wipfli, LLP preparing the financial statements, the Organization has a material weakness in internal control and compliance over financial reporting. Cause - The Organization has had turnover and has limited staff working in the accounting office. Auditor's Recommendation - We recommend that the Organization strengthen their controls around year end close reporting. Management should review and reconcile all statement of financial position accounts at least annually. Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Official - The Organization agrees with the finding and will investigate if this can be addressed internally by management.

inding Number 2019-002: Represents a material weakness in internal control over compliance with Community and Family Services, Inc.'s major federal programs. Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - Throughout the early stages of audit fieldwork management struggled to provide proper documentation to substantiate account balances. In order to substantiate balances, the audit team guided management in gathering and completing various schedules which ultimately was used as audit evidence. As a consequence the audit process lasted significantly longer than considered normal. Criteria - Management is responsible for establishing and maintaining a system of internal controls that includes keeping accurate records to support account balances. Effect or Potential Effects - As a result of improper documentation being stored and shared, the Organization has a material weakness in internal controls and compliance over financial reporting. Cause - The Organization has had turnover and has limited staff working in the accounting office. Auditor's Recommendation - We recommend that the Organization create systems to store required accurate records as part of their system of internal control. Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Official - The Organization agrees with the finding and will investigate if this can be addressed internally by management.

inding Number 2019-002: Represents a material weakness in internal control over compliance with Community and Family Services, Inc.'s major federal programs. Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - Throughout the early stages of audit fieldwork management struggled to provide proper documentation to substantiate account balances. In order to substantiate balances, the audit team guided management in gathering and completing various schedules which ultimately was used as audit evidence. As a consequence the audit process lasted significantly longer than considered normal. Criteria - Management is responsible for establishing and maintaining a system of internal controls that includes keeping accurate records to support account balances. Effect or Potential Effects - As a result of improper documentation being stored and shared, the Organization has a material weakness in internal controls and compliance over financial reporting. Cause - The Organization has had turnover and has limited staff working in the accounting office. Auditor's Recommendation - We recommend that the Organization create systems to store required accurate records as part of their system of internal control. Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Official - The Organization agrees with the finding and will investigate if this can be addressed internally by management.

inding Number 2019-002: Represents a material weakness in internal control over compliance with Community and Family Services, Inc.'s major federal programs. Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - Throughout the early stages of audit fieldwork management struggled to provide proper documentation to substantiate account balances. In order to substantiate balances, the audit team guided management in gathering and completing various schedules which ultimately was used as audit evidence. As a consequence the audit process lasted significantly longer than considered normal. Criteria - Management is responsible for establishing and maintaining a system of internal controls that includes keeping accurate records to support account balances. Effect or Potential Effects - As a result of improper documentation being stored and shared, the Organization has a material weakness in internal controls and compliance over financial reporting. Cause - The Organization has had turnover and has limited staff working in the accounting office. Auditor's Recommendation - We recommend that the Organization create systems to store required accurate records as part of their system of internal control. Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Official - The Organization agrees with the finding and will investigate if this can be addressed internally by management.

Finding Number: 2019-003 Data Collection Form Late Submission Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - The Organization did not submit the December 31, 2019 data collection form and reporting package to the Federal Audit Clearinghouse in a timely matter. Criteria - The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause - The Organization's December 31, 2019 audit was not completed prior to the due date. Effect - The Organization was not in compliance with audit submission requirements, resulting in a material weakness in internal control over compliance. Recommendations - We recommend the Organization implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan.

Finding Number: 2019-003 Data Collection Form Late Submission Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - The Organization did not submit the December 31, 2019 data collection form and reporting package to the Federal Audit Clearinghouse in a timely matter. Criteria - The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause - The Organization's December 31, 2019 audit was not completed prior to the due date. Effect - The Organization was not in compliance with audit submission requirements, resulting in a material weakness in internal control over compliance. Recommendations - We recommend the Organization implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan.

Finding Number: 2019-003 Data Collection Form Late Submission Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - The Organization did not submit the December 31, 2019 data collection form and reporting package to the Federal Audit Clearinghouse in a timely matter. Criteria - The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause - The Organization's December 31, 2019 audit was not completed prior to the due date. Effect - The Organization was not in compliance with audit submission requirements, resulting in a material weakness in internal control over compliance. Recommendations - We recommend the Organization implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan.

Finding Number: 2019-004 Disbursement Documentation Repeat Finding: No Questioned Costs: None Funding Agency: Department of Health and Human Services Title: Head Start AL Numbers: 93.600 Award Year: Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - A sample of expenses were selected to test internal control over compliance and compliance with allowable costs/cost principles. Out of the items selected, we noted insufficient documentation/no documentation for 3 out of 40 expenses selected for testing. Criteria - The Organization should follow the Uniform Guidance requirements 200.302 (b)(3) which requires the Organization to maintain records that sufficiently identify the amount, source, and expenditure of funds for federal awards. These records are required to contain information necessary to identify federal awards, authorizations, financial obligations, unobligated balances, as well as assets, expenditures, income and interest. Cause - The Organization has had turnover and has limited staff working in the accounting office. Effect - The Organization could not provide source documentation for 3 expenses charged to the Head Start grant. Recommendations - We recommend the Organization implement systems and procedures to ensure it is following the documentation requirements listed under the Uniform Guidance. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan

Finding Number: 2019-004 Disbursement Documentation Repeat Finding: No Questioned Costs: None Funding Agency: Department of Health and Human Services Title: Head Start AL Numbers: 93.600 Award Year: Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - A sample of expenses were selected to test internal control over compliance and compliance with allowable costs/cost principles. Out of the items selected, we noted insufficient documentation/no documentation for 3 out of 40 expenses selected for testing. Criteria - The Organization should follow the Uniform Guidance requirements 200.302 (b)(3) which requires the Organization to maintain records that sufficiently identify the amount, source, and expenditure of funds for federal awards. These records are required to contain information necessary to identify federal awards, authorizations, financial obligations, unobligated balances, as well as assets, expenditures, income and interest. Cause - The Organization has had turnover and has limited staff working in the accounting office. Effect - The Organization could not provide source documentation for 3 expenses charged to the Head Start grant. Recommendations - We recommend the Organization implement systems and procedures to ensure it is following the documentation requirements listed under the Uniform Guidance. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan

Section III – Federal Award Findings and Questioned Costs Finding Number 2019-001: Represents a material weakness in internal control over compliance with Community and Family Services, Inc.'s major federal programs. Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 condition - Throughout the course of the audit, Wipfli, LLP. noted that several significant accounts were not reconciled in an accurate or timely manner. As a result, material adjusting journal entries needed to be posted to the general ledger to accurately report account balances. Specifically, Wipfli LLP. proposed seven material journal entries including a prior period adjustment which changed grants receivable, inventory, property and equipment, deferred revenue, net assets, grant revenue and various expense accounts totaling $1,077,141. In addition, Wipfli,LLP prepared the financial statements due to management's inability to provide financial statements in accordance with generally accepted accounting principles generally accepted in the United States (GAAP). Criteria - Management is responsible for designing and implementing fiscal policies and procedures that result in accurate account balances that can be used to prepare financial statements. Management is also responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with GAAP. Effect or Potential Effects - As a result of the material adjusting journal entries and Wipfli, LLP preparing the financial statements, the Organization has a material weakness in internal control and compliance over financial reporting. Cause - The Organization has had turnover and has limited staff working in the accounting office. Auditor's Recommendation - We recommend that the Organization strengthen their controls around year end close reporting. Management should review and reconcile all statement of financial position accounts at least annually. Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Official - The Organization agrees with the finding and will investigate if this can be addressed internally by management.

Section III – Federal Award Findings and Questioned Costs Finding Number 2019-001: Represents a material weakness in internal control over compliance with Community and Family Services, Inc.'s major federal programs. Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 condition - Throughout the course of the audit, Wipfli, LLP. noted that several significant accounts were not reconciled in an accurate or timely manner. As a result, material adjusting journal entries needed to be posted to the general ledger to accurately report account balances. Specifically, Wipfli LLP. proposed seven material journal entries including a prior period adjustment which changed grants receivable, inventory, property and equipment, deferred revenue, net assets, grant revenue and various expense accounts totaling $1,077,141. In addition, Wipfli,LLP prepared the financial statements due to management's inability to provide financial statements in accordance with generally accepted accounting principles generally accepted in the United States (GAAP). Criteria - Management is responsible for designing and implementing fiscal policies and procedures that result in accurate account balances that can be used to prepare financial statements. Management is also responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with GAAP. Effect or Potential Effects - As a result of the material adjusting journal entries and Wipfli, LLP preparing the financial statements, the Organization has a material weakness in internal control and compliance over financial reporting. Cause - The Organization has had turnover and has limited staff working in the accounting office. Auditor's Recommendation - We recommend that the Organization strengthen their controls around year end close reporting. Management should review and reconcile all statement of financial position accounts at least annually. Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Official - The Organization agrees with the finding and will investigate if this can be addressed internally by management.

Section III – Federal Award Findings and Questioned Costs Finding Number 2019-001: Represents a material weakness in internal control over compliance with Community and Family Services, Inc.'s major federal programs. Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 condition - Throughout the course of the audit, Wipfli, LLP. noted that several significant accounts were not reconciled in an accurate or timely manner. As a result, material adjusting journal entries needed to be posted to the general ledger to accurately report account balances. Specifically, Wipfli LLP. proposed seven material journal entries including a prior period adjustment which changed grants receivable, inventory, property and equipment, deferred revenue, net assets, grant revenue and various expense accounts totaling $1,077,141. In addition, Wipfli,LLP prepared the financial statements due to management's inability to provide financial statements in accordance with generally accepted accounting principles generally accepted in the United States (GAAP). Criteria - Management is responsible for designing and implementing fiscal policies and procedures that result in accurate account balances that can be used to prepare financial statements. Management is also responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with GAAP. Effect or Potential Effects - As a result of the material adjusting journal entries and Wipfli, LLP preparing the financial statements, the Organization has a material weakness in internal control and compliance over financial reporting. Cause - The Organization has had turnover and has limited staff working in the accounting office. Auditor's Recommendation - We recommend that the Organization strengthen their controls around year end close reporting. Management should review and reconcile all statement of financial position accounts at least annually. Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Official - The Organization agrees with the finding and will investigate if this can be addressed internally by management.

inding Number 2019-002: Represents a material weakness in internal control over compliance with Community and Family Services, Inc.'s major federal programs. Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - Throughout the early stages of audit fieldwork management struggled to provide proper documentation to substantiate account balances. In order to substantiate balances, the audit team guided management in gathering and completing various schedules which ultimately was used as audit evidence. As a consequence the audit process lasted significantly longer than considered normal. Criteria - Management is responsible for establishing and maintaining a system of internal controls that includes keeping accurate records to support account balances. Effect or Potential Effects - As a result of improper documentation being stored and shared, the Organization has a material weakness in internal controls and compliance over financial reporting. Cause - The Organization has had turnover and has limited staff working in the accounting office. Auditor's Recommendation - We recommend that the Organization create systems to store required accurate records as part of their system of internal control. Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Official - The Organization agrees with the finding and will investigate if this can be addressed internally by management.

inding Number 2019-002: Represents a material weakness in internal control over compliance with Community and Family Services, Inc.'s major federal programs. Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - Throughout the early stages of audit fieldwork management struggled to provide proper documentation to substantiate account balances. In order to substantiate balances, the audit team guided management in gathering and completing various schedules which ultimately was used as audit evidence. As a consequence the audit process lasted significantly longer than considered normal. Criteria - Management is responsible for establishing and maintaining a system of internal controls that includes keeping accurate records to support account balances. Effect or Potential Effects - As a result of improper documentation being stored and shared, the Organization has a material weakness in internal controls and compliance over financial reporting. Cause - The Organization has had turnover and has limited staff working in the accounting office. Auditor's Recommendation - We recommend that the Organization create systems to store required accurate records as part of their system of internal control. Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Official - The Organization agrees with the finding and will investigate if this can be addressed internally by management.

inding Number 2019-002: Represents a material weakness in internal control over compliance with Community and Family Services, Inc.'s major federal programs. Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - Throughout the early stages of audit fieldwork management struggled to provide proper documentation to substantiate account balances. In order to substantiate balances, the audit team guided management in gathering and completing various schedules which ultimately was used as audit evidence. As a consequence the audit process lasted significantly longer than considered normal. Criteria - Management is responsible for establishing and maintaining a system of internal controls that includes keeping accurate records to support account balances. Effect or Potential Effects - As a result of improper documentation being stored and shared, the Organization has a material weakness in internal controls and compliance over financial reporting. Cause - The Organization has had turnover and has limited staff working in the accounting office. Auditor's Recommendation - We recommend that the Organization create systems to store required accurate records as part of their system of internal control. Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of Responsible Official - The Organization agrees with the finding and will investigate if this can be addressed internally by management.

Finding Number: 2019-003 Data Collection Form Late Submission Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - The Organization did not submit the December 31, 2019 data collection form and reporting package to the Federal Audit Clearinghouse in a timely matter. Criteria - The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause - The Organization's December 31, 2019 audit was not completed prior to the due date. Effect - The Organization was not in compliance with audit submission requirements, resulting in a material weakness in internal control over compliance. Recommendations - We recommend the Organization implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan.

Finding Number: 2019-003 Data Collection Form Late Submission Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - The Organization did not submit the December 31, 2019 data collection form and reporting package to the Federal Audit Clearinghouse in a timely matter. Criteria - The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause - The Organization's December 31, 2019 audit was not completed prior to the due date. Effect - The Organization was not in compliance with audit submission requirements, resulting in a material weakness in internal control over compliance. Recommendations - We recommend the Organization implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan.

Finding Number: 2019-003 Data Collection Form Late Submission Repeat Finding: No Questioned Costs: None Funding Agency: Department of Housing and Urban Development & Department of Health and Human Services Title: Section 8 and Head Start AL Numbers: 14.871 & 93.600 Award Year: Section 8: 01/01/19 - 12/31/19 Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - The Organization did not submit the December 31, 2019 data collection form and reporting package to the Federal Audit Clearinghouse in a timely matter. Criteria - The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause - The Organization's December 31, 2019 audit was not completed prior to the due date. Effect - The Organization was not in compliance with audit submission requirements, resulting in a material weakness in internal control over compliance. Recommendations - We recommend the Organization implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan.

Finding Number: 2019-004 Disbursement Documentation Repeat Finding: No Questioned Costs: None Funding Agency: Department of Health and Human Services Title: Head Start AL Numbers: 93.600 Award Year: Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - A sample of expenses were selected to test internal control over compliance and compliance with allowable costs/cost principles. Out of the items selected, we noted insufficient documentation/no documentation for 3 out of 40 expenses selected for testing. Criteria - The Organization should follow the Uniform Guidance requirements 200.302 (b)(3) which requires the Organization to maintain records that sufficiently identify the amount, source, and expenditure of funds for federal awards. These records are required to contain information necessary to identify federal awards, authorizations, financial obligations, unobligated balances, as well as assets, expenditures, income and interest. Cause - The Organization has had turnover and has limited staff working in the accounting office. Effect - The Organization could not provide source documentation for 3 expenses charged to the Head Start grant. Recommendations - We recommend the Organization implement systems and procedures to ensure it is following the documentation requirements listed under the Uniform Guidance. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan

Finding Number: 2019-004 Disbursement Documentation Repeat Finding: No Questioned Costs: None Funding Agency: Department of Health and Human Services Title: Head Start AL Numbers: 93.600 Award Year: Head Start: 11/1/2018 - 10/31/2019 Head Start: 11/1/2019 - 10/31/2020 Condition - A sample of expenses were selected to test internal control over compliance and compliance with allowable costs/cost principles. Out of the items selected, we noted insufficient documentation/no documentation for 3 out of 40 expenses selected for testing. Criteria - The Organization should follow the Uniform Guidance requirements 200.302 (b)(3) which requires the Organization to maintain records that sufficiently identify the amount, source, and expenditure of funds for federal awards. These records are required to contain information necessary to identify federal awards, authorizations, financial obligations, unobligated balances, as well as assets, expenditures, income and interest. Cause - The Organization has had turnover and has limited staff working in the accounting office. Effect - The Organization could not provide source documentation for 3 expenses charged to the Head Start grant. Recommendations - We recommend the Organization implement systems and procedures to ensure it is following the documentation requirements listed under the Uniform Guidance. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan