Audit 386633

Finding 2023-2 Control Activities, Information and Communication, Monitoring Condition: Repeat finding from prior year 2022-1. The organization has established internal control policies and procedures related to timely reconciliation of all integral accounts including but not limited to cash, accounts receivable/revenue and accounts payable/expenses. During the audit period and subsequent, these timely reconciliations were not being followed. Within the organization, there were some significant changes to management which included change in executive director, and subsequent to that change, the departure of the chief financial officer. During the audit period, a significant number of funding required reports, requests for reimbursement and related disbursements were not performed timely. Criteria: Internal controls are developed and implemented to safeguard an organization and further its objectives. Internal controls function to minimize risks and protect assets, ensure accuracy of financial records, promote operational efficiency, and encourage adherence to policies, rules, regulations, and laws. Effect of Condition: Without the operation of proper internal control procedures related to accuracy of financial records and not having timely reconciled integral accounts, the agency had increased risks of not fully utilizing funding available, the agency runs the risk of not properly reporting financial information to outside funding sources, internal management and board of directors and increases risks for the potential of fraud. Cause of Condition: During the fiscal year 2023 and subsequent, the organization had undergone significant changes in personnel including but not limited to executive director(s), financial administrators, and financial staff. The organization’s internal control systems had a lapse of operational implementation. Recommendation: We recommend that the internal control procedures of the organization be reviewed on a revolving schedule for both effectiveness of design of the controls and operational implementation of controls. View of Responsible Officials and Planned Corrective Actions: Toledo Lucas County Homelessness Board agrees with the finding. The recommended corrections have been developed and implemented as of the date of the audit conclusion.

Finding 2023-3 Reporting Requirements Condition: Repeat finding from prior year 2022-3. The organization has internal control policies and procedures that identify all grants/contracts and contributions including the related reporting requirements and deadlines thereto. During the current audit period, the organization was late in filing related reports to a significant number of grants and contracts. While the organization has internal control policies and procedures established, those policies and procedures were not functioning in an operational capacity. Criteria: Internal controls are developed and implemented to safeguard an organization and further its objectives. The control procedures related to reporting are established by each funder and required to be implemented to maintain current levels of funding and potential future funding. Effect of Condition: Without the operation of proper internal control procedures related to reporting, the organization increases the risk of not receiving current funding, falling into a repayment of funding situation and/or risk any future funding from related funder. Cause of Condition: During the fiscal year 2023 and subsequent, the organization had undergone significant changes in personnel including but not limited to executive director(s), financial administrators, and financial staff. The organization’s internal control systems had a lapse of operational implementation. Recommendation: We recommend that the internal control procedures of the organization be reviewed on a revolving schedule for both effectiveness of design of the controls and operational implementation of controls. Proper oversight should be included in the control procedures to afford meeting reporting requirements and timeliness of reporting. View of Responsible Officials and Planned Corrective Actions: Toledo Lucas County Homelessness Board agrees with the finding. The recommended corrections have been developed and implemented as of the date of the audit conclusion.

Finding 2023-4 Single Audit Reporting Requirements Condition: Repeat finding from prior year 2022-4. Single Audits are required for all recipients who expend $750,000 or more in aggregate federal financial assistance within their fiscal year. The Single Audit reporting packages are due to the Federal Audit Clearing House by the earlier 30 days after receipt of the Auditor’s report or within nine months after the Auditee’s fiscal year end. The organization’s fiscal year end of December 31, 2023 would require the submission of the annual data collection packet no later than September 30, 2024. Criteria: The Office of Management and Budget is responsible for issuance and maintenance of Single Audit regulations. They require that a single audit data collection packet be prepared and submitted no later than 30 days after receipt of Auditor’s report or within nine months after the Auditee’s fiscal year end. Effect of Condition: Without compliance with Office of Management and Budget reporting requirements, the organization could incur penalties for not timely filing, risk loss of current and/or future funding. Cause of Condition: During the fiscal year 2023 and subsequent, the organization had undergone significant changes in personnel including but not limited to executive director(s), financial administrators, and financial staff. The organization’s internal control systems had a lapse of operational implementation. Recommendation: We recommend that the internal control procedures of the organization be reviewed on a revolving schedule for both effectiveness of design of the controls and operational implementation of controls. Proper oversight should be included in the control procedures to afford meeting reporting requirements and timeliness of reporting. View of Responsible Officials and Planned Corrective Actions: Toledo Lucas County Homelessness Board agrees with the finding. The recommended corrections have been developed and implemented as of the date of the audit conclusion.