Audit 348130

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.

Significant Deficiency – Grant Oversight Program: AL Number 16.575 – Crime Victim Assistance AL Number 93.558 – TANF Cluster Federal Award Year: Fiscal year 2023-2024 Federal Agency: United States Department of Health and Human Services and United States Department of Justice Compliance Requirement: Not applicable Questioned Costs: $0 Criteria: According to 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, non-federal entities are required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal Condition: During 2024, an audit by the Michigan Department of Health and Human Services identified multiple compliance and internal control issues related to January 2024 thru March 2024. As a result of the audit, the Organization was required to repay $37,349 in previously provided grant funds; the majority of which related to unsupported payroll and fringe benefit charges for shelter and hotline staff. Cause: The Organization’s shelter and hotline staff funded by sexual assault funding sources did not properly utilize program codes on their time sheets resulting in discrepancies between timesheet used to allocate costs between various grants and actual time spent on those programs. The Organization’s internal control procedures did not identify this discrepancy. Effect: As a result, the Organization did not properly follow all requirements of 2 CFR Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which resulted in the payback of $37,349 in previously provided grant funding. Recommendation: We recommend that the Organization 1) develop a method of allocating shelter and hotline staff that is based on actual services being provided; 2) conduct regular training sessions for all staff involved in federal grant management to ensure they understand and adhere to the federal policies and procedures and grant compliance requirements and; 3) perform periodic internal audits to assess compliance with federal requirements and the effectiveness of internal controls. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See corrective action plan on page 39 detailing the steps management has taken to resolve this finding.