Audit 394661

2025-002 Finding – Federal Awards – AL #14.267 – Continuum of Care Program Type: Significant Deficiency in Internal Control over Compliance – Special Tests: Rent Reasonableness Criteria / Requirement: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition / Context: In testing Special Tests - Rental Reasonableness one out of four sample selected did not have a documented file review. The file appeared complete and there was no noncompliance noted, however there was no documented internal control over the rent reasonableness calculation. Cause: The process for file review was updated during the year to include a HUD file checklist not previously used. Three of the four files included the checklist which documents the review by the Housing Program Manager; however, one file was created before the checklist was in use. No other documentation of the review of the file was maintained, other than the associated check issued to the rental property company. Effect: Rental payments made on behalf of the Organization’s clients could be made for amounts above the HUD guideline’s maximum amount for the area, and therefore out of compliance with the federal award. Questioned Costs: None Recommendation: We recommend that the Organization continue with the internal controls established later in the year and ensure that Rent Reasonableness testing is documented including the file review. Additionally, as there have been recent revisions to the Uniform Grant Guidance (2 CFR 200) that now require documented internal controls over compliance, we also recommend that a specific policy be established for Rent Reasonableness to give clear directives of how the Organization determines rent reasonableness, how it is documented, and retained, ensuring there is current documentation of the internal controls over compliance. Management’s Response: Management concurs with the finding and has implement effective internal controls over Special Tests – Rent Reasonableness.

2025-001 Finding – Federal Awards – AL #93.592 – Family Violence Prevention and Services/ Discretionary Type: Significant Deficiency in Internal Control over Compliance – Financial Reporting Criteria / Requirement: 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition / Context: The Organization filed the required Federal Financial Report timely, the information reported was supported by detail within their general ledger, and there was no noncompliance noted. However, the Federal Financial Report was compiled and submitted by one employee. There was no internal control within the Federal Financial Reporting procedure that would have prevented or detected inaccurate information from being reported. Cause: Procedures were not in place to properly review Federal Financial Reporting prior to submission. Effect: Federal Financial Reporting could potentially include inaccurate information. Questioned Costs: None Recommendation: We recommend that the Organization implement the necessary internal controls to ensure that Federal Financial Reporting is performed, and review of reports submitted is documented. Additionally, as there have been recent revisions to the Uniform Grant Guidance (2 CFR 200) that now require documented internal controls over compliance, we also recommend that a specific policy be established for Federal Financial Reporting to give clear directives of how Federal Financial Reporting will be performed, documented, and retained ensuring there is current documentation of the internal controls over compliance. Management’s Response: Management concurs with the finding and will implement effective internal controls over Financial Reporting.