Audit 406207

Finding 2025-002: Adjustments to Financial Statements and Schedule of Expenditures of Federal Awards Federal Program Affected: Protection and Advocacy for Individuals with Mental Illness, ALN 93.318 and Developmental Disabilities Basic Support and Advocacy Grants, ALN 93.630 Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: During our engagement, we posted several audit adjustments. Adjustments included entries to cash, prepaids, receivables, lease assets, lease liabilities, accrued liabilities, refundable advance and federal grant revenue, net assets, and the schedule of expenditures of federal awards (SEFA). The Organization does not have internal control processes to reconcile year-end balances. Criteria and Effect: All balance sheet accounts and SEFA balances should be reconciled to supporting schedules. These adjustments were not identified with the Organization’s existing internal controls and would have resulted in a material misstatement of the Organization’s financial statements and SEFA. Repeat Finding from Prior Year: 2024-002 Recommendation: All significant balance sheet accounts, net assets and federal expenditures reported on the SEFA should be reconciled to supporting schedules and adjusted regularly. At a minimum, such reconciliations should be completed at year end. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.

Finding No. 2025-004: Federal Program Expenditure Tracking Federal Program Affected: Protection and Advocacy for Individuals with Mental Illness, ALN 93.318 and Developmental Disabilities Basic Support and Advocacy Grants, ALN 93.630 Compliance Requirement: Cash Management and Reporting Questioned Costs: None after adjustment Condition and Cause: The Organization does not have a current internal control process to reconcile reimbursement-based grant revenue to incurred expenses. Federal grant revenue reimbursed exceeded expenses incurred and allocated to the grant funding, also creating variances in the federal program reporting requirements. A refundable advance totaling $139,872 was recorded as of September 30, 2025, which included the following federal grant programs: • Developmental Disabilities Basic Support and Advocacy Grants, ALN 93.630 - $69,253 • Protection and Advocacy for Individuals with Mental Illness, ALN 93.138 - $36,760 • Non-major federal programs - $33,859 Criteria and Effect: Current internal controls did not identify the errors in drawdown requests for reimbursement-based federal programs during the year. This resulted in material noncompliance. Repeat Finding from Prior Year: N/A Recommendation: The Organization should use actual expenditure reports from the general ledger to prepare reimbursement requests and federal reporting submissions. The general ledger reports should be maintained to support reimbursement requests and report submissions. Management reviewing the reimbursement requests should ensure such expenditure reports match or exceed the reimbursement requests and agree to reports submitted for the federal programs. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.

Finding No. 2025-005: Matching Compliance Controls Federal Program Affected: Developmental Disabilities Basic Support and Advocacy Grants Compliance Requirement: Matching Questioned Costs: None Condition and Cause: The Organization does not have a current internal control process to maintain documentation to support travel, training and homework time related its grant matching requirement. Alternative documentation was obtained to support the reasonableness of matching hours used. Criteria and Effect: Documentation should be maintained to support hours spent and the rates used for travel, training and homework for matching requirements. The lack of adequate documentation could lead to noncompliance. Repeat Finding from Prior Year: 2024-004 Recommendation: We recommend management establish and maintain documentation for all in-kind/matching balances including time sheets and proper rate documentation for all travel, training and homework time. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.