Audit 331207

Finding 2023-003: Activities Allowed and Allowable Costs Criteria ESG funds may be used for five program components: street outreach, emergency shelter, homelessness prevention, rapid re-housing assistance, and HMIS; as well as administrative activities. The five program components and the eligible activities that may be funded under each are set forth in 24 CFR 576.101 through 576.107. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments. Questioned Costs $19,128 How the Questioned Costs were Computed Total Amount Charged to the Program from forensic report that were documented as Improper, Inconclusive or Insufficient Information Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments. Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements. Management also notified the State of New Jersey Department of Community Affairs Office of Auditing. Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel. 47

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-004: Activities Allowed and Allowable Costs and Eligibility Criteria The Homeless Veterans Comprehensive Service Programs Act of 1992 (Public Law 102-590) established the VA Homeless Providers Grant and Per Diem Program to fund the costs of creating or improving transitional supportive housing facilities or services centers, and grants to support case managers to assist Veterans in attaining or retaining permanent housing. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Questioned Costs $18,691 How the Questioned Costs were Computed Total Amount Charged to the Program from forensic report that were documented as Improper, Inconclusive or Insufficient Information Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments. Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements.Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-004: Activities Allowed and Allowable Costs and Eligibility Criteria The Homeless Veterans Comprehensive Service Programs Act of 1992 (Public Law 102-590) established the VA Homeless Providers Grant and Per Diem Program to fund the costs of creating or improving transitional supportive housing facilities or services centers, and grants to support case managers to assist Veterans in attaining or retaining permanent housing. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Questioned Costs $18,691 How the Questioned Costs were Computed Total Amount Charged to the Program from forensic report that were documented as Improper, Inconclusive or Insufficient Information Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments. Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements.Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-005: Activities Allowed and Allowable Costs and Eligibility Criteria TANF funds monthly cash assistance payments to low-income families with children. The Homeless Veterans Comprehensive Service Programs Act of 1992 (Public Law 102-590) established the VA Homeless Providers Grant and Per Diem Program to fund the costs of creating or improving transitional supportive housing facilities or services centers, and grants to support case managers to assist Veterans in attaining or retaining permanent housing. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments.Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements. Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-005: Activities Allowed and Allowable Costs and Eligibility Criteria TANF funds monthly cash assistance payments to low-income families with children. The Homeless Veterans Comprehensive Service Programs Act of 1992 (Public Law 102-590) established the VA Homeless Providers Grant and Per Diem Program to fund the costs of creating or improving transitional supportive housing facilities or services centers, and grants to support case managers to assist Veterans in attaining or retaining permanent housing. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments.Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements. Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-005: Activities Allowed and Allowable Costs and Eligibility Criteria TANF funds monthly cash assistance payments to low-income families with children. The Homeless Veterans Comprehensive Service Programs Act of 1992 (Public Law 102-590) established the VA Homeless Providers Grant and Per Diem Program to fund the costs of creating or improving transitional supportive housing facilities or services centers, and grants to support case managers to assist Veterans in attaining or retaining permanent housing. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments.Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements. Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-005: Activities Allowed and Allowable Costs and Eligibility Criteria TANF funds monthly cash assistance payments to low-income families with children. The Homeless Veterans Comprehensive Service Programs Act of 1992 (Public Law 102-590) established the VA Homeless Providers Grant and Per Diem Program to fund the costs of creating or improving transitional supportive housing facilities or services centers, and grants to support case managers to assist Veterans in attaining or retaining permanent housing. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments.Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements. Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-006: Activities Allowed and Allowable Costs and Eligibility Criteria Emergency Food and Shelter National Board Program (EFSP) funds may be used for food and related expenses (such as transporting food/food preparation and serving equipment); mass shelter; other shelter (such as hotels and motels); and rent/mortgage and/or utility assistance limited to one month. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments. Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements.Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-006: Activities Allowed and Allowable Costs and Eligibility Criteria Emergency Food and Shelter National Board Program (EFSP) funds may be used for food and related expenses (such as transporting food/food preparation and serving equipment); mass shelter; other shelter (such as hotels and motels); and rent/mortgage and/or utility assistance limited to one month. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments. Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements.Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-003: Activities Allowed and Allowable Costs Criteria ESG funds may be used for five program components: street outreach, emergency shelter, homelessness prevention, rapid re-housing assistance, and HMIS; as well as administrative activities. The five program components and the eligible activities that may be funded under each are set forth in 24 CFR 576.101 through 576.107. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments. Questioned Costs $19,128 How the Questioned Costs were Computed Total Amount Charged to the Program from forensic report that were documented as Improper, Inconclusive or Insufficient Information Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments. Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements. Management also notified the State of New Jersey Department of Community Affairs Office of Auditing. Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel. 47

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-004: Activities Allowed and Allowable Costs and Eligibility Criteria The Homeless Veterans Comprehensive Service Programs Act of 1992 (Public Law 102-590) established the VA Homeless Providers Grant and Per Diem Program to fund the costs of creating or improving transitional supportive housing facilities or services centers, and grants to support case managers to assist Veterans in attaining or retaining permanent housing. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Questioned Costs $18,691 How the Questioned Costs were Computed Total Amount Charged to the Program from forensic report that were documented as Improper, Inconclusive or Insufficient Information Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments. Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements.Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-004: Activities Allowed and Allowable Costs and Eligibility Criteria The Homeless Veterans Comprehensive Service Programs Act of 1992 (Public Law 102-590) established the VA Homeless Providers Grant and Per Diem Program to fund the costs of creating or improving transitional supportive housing facilities or services centers, and grants to support case managers to assist Veterans in attaining or retaining permanent housing. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Questioned Costs $18,691 How the Questioned Costs were Computed Total Amount Charged to the Program from forensic report that were documented as Improper, Inconclusive or Insufficient Information Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments. Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements.Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-005: Activities Allowed and Allowable Costs and Eligibility Criteria TANF funds monthly cash assistance payments to low-income families with children. The Homeless Veterans Comprehensive Service Programs Act of 1992 (Public Law 102-590) established the VA Homeless Providers Grant and Per Diem Program to fund the costs of creating or improving transitional supportive housing facilities or services centers, and grants to support case managers to assist Veterans in attaining or retaining permanent housing. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments.Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements. Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-005: Activities Allowed and Allowable Costs and Eligibility Criteria TANF funds monthly cash assistance payments to low-income families with children. The Homeless Veterans Comprehensive Service Programs Act of 1992 (Public Law 102-590) established the VA Homeless Providers Grant and Per Diem Program to fund the costs of creating or improving transitional supportive housing facilities or services centers, and grants to support case managers to assist Veterans in attaining or retaining permanent housing. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments.Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements. Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-005: Activities Allowed and Allowable Costs and Eligibility Criteria TANF funds monthly cash assistance payments to low-income families with children. The Homeless Veterans Comprehensive Service Programs Act of 1992 (Public Law 102-590) established the VA Homeless Providers Grant and Per Diem Program to fund the costs of creating or improving transitional supportive housing facilities or services centers, and grants to support case managers to assist Veterans in attaining or retaining permanent housing. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments.Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements. Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-005: Activities Allowed and Allowable Costs and Eligibility Criteria TANF funds monthly cash assistance payments to low-income families with children. The Homeless Veterans Comprehensive Service Programs Act of 1992 (Public Law 102-590) established the VA Homeless Providers Grant and Per Diem Program to fund the costs of creating or improving transitional supportive housing facilities or services centers, and grants to support case managers to assist Veterans in attaining or retaining permanent housing. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments.Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements. Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-006: Activities Allowed and Allowable Costs and Eligibility Criteria Emergency Food and Shelter National Board Program (EFSP) funds may be used for food and related expenses (such as transporting food/food preparation and serving equipment); mass shelter; other shelter (such as hotels and motels); and rent/mortgage and/or utility assistance limited to one month. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments. Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements.Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-006: Activities Allowed and Allowable Costs and Eligibility Criteria Emergency Food and Shelter National Board Program (EFSP) funds may be used for food and related expenses (such as transporting food/food preparation and serving equipment); mass shelter; other shelter (such as hotels and motels); and rent/mortgage and/or utility assistance limited to one month. Condition/Context Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or participant eligibility. Cause Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible individuals with personal relationships to these employees receive assistance payments. Effect Management became aware of the improprieties and hired an independent forensic investigator. The forensic investigator identified improper disbursements to ineligible participants along with other disbursements that required further research, inconclusive, insufficient, unverified, and LLC discrepancy disbursements.Recommendation Management should strengthen controls over documentation required for participants to receive assistance payments along with controls over review of documentation in participant files and processing of these payments. View of Responsible Officials Management agrees with the recommendation and have begun implementing additional procedures to ensure applicant files are complete and case files and support are being reviewed by supervisory personnel.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.

Finding 2023-007: Late Submission of Single Audit Reporting Package Instance of noncompliance and significant deficiency in internal controls over compliance for reporting related to the Submission of Single Audit reporting package. Federal Agency: All Awards reported on the schedule of expenditures of federal awards. Program Title: All Awards reported on the schedule of expenditures of federal awards. Assistance Listing Number: All Awards reported on the schedule of expenditures of federal awards. Award Number: All Awards reported on the schedule of expenditures of federal awards. Award Period: All Awards reported on the schedule of expenditures of federal awards. Criteria In accordance with 2 CFR 200.512, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Internal control systems over financial reporting are to prevent late submission of the Single Audit reporting package, including the data collection form to the Federal Audit Clearinghouse. Condition/Context The Single Audit reporting package and related data collection form for the year ended June 30, 2023, was not submitted within nine months after the end of the audit period. Cause The submission of the Single Audit reporting package was delayed due to a forensic audit needed to be completed before the single audit could be completed. Recommendation We recommend that the Organization review the internal controls in place over the filing of the data collection form and reporting package so it can be submitted timely to the Federal Audit Clearinghouse. View of Responsible Officials Management agrees with the finding and has provided the accompanying corrective action plan.