Audit 386255

Finding 2023-002 Federal Program: Coronavirus State and Local Fiscal Recover Funds, AL# 21.027 Type of Finding: Significant deficiency in internal controls over compliance and immaterial non-compliance Compliance Requirement: Reporting Criteria: In accordance with the Uniform Guidance (2 CFR §200) and the pass-through agency grant agreement, Creating Housing Coalition as a sub-recipient, must submit accurate, complete, and timely reports as required by the federal awarding agency. Internal controls must be established and maintained to provide reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of the award. Condition and Context: The auditee did not maintain adequate internal controls over compliance with federal reporting requirements. Specifically, the required quarterly and annual performance reports were submitted late to the granting agency. Cause: The organization lacked documented internal controls to ensure timely reporting. Additionally, there was a lapse in reporting during a period of staffing changes subsequent to year end. Effect: Deficiencies in the internal controls over federal reporting requirements could result in inaccurate information being reported to granting agencies and increases the risk of material non-compliance with federal regulations and grant requirements. Questioned Costs: None. Repeat Finding: No. Recommendation: We recommend the organization: Establish and document clear responsibility for report preparation and review; Implement internal control procedures, including supervisory review and reconciliation of data prior to submission. Develop a reporting requirements calendar or monitoring system to ensure timely submission of reports; and Provide training to staff responsible for reporting to ensure understanding of federal requirements. View of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.

Finding 2023-003 Federal Program: Coronavirus State and Local Fiscal Recover Funds, AL# 21.027 Type of Finding: Significant deficiency in internal controls over compliance and immaterial non-compliance Compliance Requirement: Procurement Criteria: In accordance with the Uniform Guidance, specifically 2 CFR §200.318, non-federal entities must have documented procurement procedures that conform to the Uniform Guidance 2 CFR §200.318 through §200.326. Condition and Context: The auditee did not have written procurement procedures that conformed to the Uniform Guidance 2 CFR §200.318 through §200.326. However, the auditee did follow the methods of procurement required (per 2 CFR §200.320) for federal procurements made during the audit period. Cause: There were not adequate internal controls over compliance in place to ensure there were written procurement policies that conformed with the Uniform Guidance. Effect: The deficiency in the internal controls over compliance could result in material non-compliance with the procurement compliance requirement of the federal award and the Uniform Guidance. Questioned Costs: None. Repeat Finding: No. Recommendation: We recommend the Organization document procurement policies in a formal written procurement policy that contains all required elements of and conforms to the requirements of the Uniform Guidance. View of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.