Audit 389865

Significant deficiency - Preparation of the Schedule of Federal Expenditures U.S. Department of the Treasury AL #21.027 U.S. Department of Labor AL #17.258 / 17.259 / 17.278 Criteria: Uniform Guidance requires Organizations to prepare a schedule of expenditures of federal awards for the period covered by the audit. The schedule must list individual federal programs by federal agency and provide total federal awards expended for each individual federal program and the Assistance Listings Number. Condition: During our audit, we identified a federal program excluded from the Schedule of Federal Expenditures. Cause: Grant agreements did not clearly identify the dollar amount made available under each federal award and the associated Assistance Listing number. Effect: The Schedule of Expenditures of Federal Awards (SEFA) was inaccurate. This could result in non-compliance with reporting requirements set by grantors and ultimately jeopardize the renewal of funding. Questioned Costs: None. Repeat Finding: Previously reported as finding 2023-002 Recommendation: We recommend confirming directly with all granting organizations (1) the amount of expenditures incurred during the fiscal year, (2) the portion that is federally funded, (3) the Assistance Listing number, (4) the amount advanced under the contract, if any, and (5) the amount owed to FCCP at June 30th . Response: The Organization agrees with the finding. For the year ending June 30, 2024, FCCP will send confirmations to grantors to verify the federal funds and Assistance Listing Number.

Significant deficiency - Timely Submission of Single Audit Data Collection Form U.S. Department of the Treasury AL #21.027 U.S. Department of Labor AL #17.258 / 17.259 / 17.278 Criteria: Uniform Guidance requires Organizations that expend $750,000 and greater of federal funds to conduct a single audit and submit the data collection form to the Federal Audit Clearinghouse the earlier of 30 days after receiving the single report or nine months after the end of the fiscal year. Condition: The Organization has experienced delays in the preparation and issuance of the June 30, 2024, financial statements and its Single Audit required under the Uniform Guidance. Cause: This situation was attributed to the turnover and vacancy in the accounting department and the shortage of support staff. Effect: The failure to submit single audits within the time frame prescribed by Uniform Guidance causes FCCP to be considered a high-risk auditee. In addition, the Organization is required to adhere to strict reporting deadlines set by regulatory bodies, including Federal grantors. Failure to meet these deadlines can result in compliance issues and penalties and ultimately jeopardize the renewal of funding. Questioned costs: None Repeat Finding: Previously reported as finding 2023-003 Recommendation: Completion of the June 30, 2025 audit prior to the submission deadline is expected since the Organization has employed the necessary accounting personnel who have worked diligently to catch up on multiple years of delinquent audits. Response: The Organization agrees with the finding. Now that the Organization has filled the accounting director position and the delinquent audits have been completed, annual audits are expected to be completed in a timely manner.

Significant Deficiency - Allocation of Insurance Expense - Allowable Costs U.S. Department of the Treasury AL #21.027 U.S. Department of Labor AL #17.258 / 17.259 / 17.278 Criteria: Uniform Guidance requires federal awards to be expended only for allowable activities and that the costs charged are in accordance with the applicable cost principles. Condition: The Organization's internal controls over financial reporting did not ensure that prepaid insurance and monthly adjustments to the account were based on current insurance statements resulting in an inaccurate amount allocated to grants each month. Cause: This situation was attributed to the turnover and vacancy in the accounting department and the shortage of support staff. Effect: Insurance expense allocated to grants and reimbursed by grantors was more than the actual expenditure resulting in disallowed costs and the potential need to refund grantors. Total insurance costs overallocated to grants for the year did not meet the threshold to be reported as a questioned cost. Questioned Costs: None Recommendation: Implement procedures to (1) reconcile prepaid insurance and insurance expense to the actual policies (2) allocate insurance expense based on the annual policy expense over 12 months and (3) ensure allocation calculations are updated annually for the new policy amounts. Response: The Organization agrees with the finding. The Organization will implement a method to ensure prepaid insurance is appropriately adjusted and insurance costs are accurately recorded and allocated to grants.