Findings Citing § 200.512

Finding 2022-001 Applicable to all assistance listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2021. Finding: The District?s fiscal year 2021 Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition: The Single Audit package for the District's year ended June 30, 2021 and audit report was issued on December 27, 2021, as such data collection form should have been submitted to the Federal Audit Clearinghouse by January 27, 2022. Cause: The audit was not completed until December 27, 2021, which put a lot of strain on internal resources and the District could not independently track the submission of the data collection form. Effect or potential effect: Noncompliance with the requirements of the Uniform Guidance. Questioned costs: None Context: The June 30, 2021 Single Audit package. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: We recommend the District file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.

Finding 2022-001 Applicable to all assistance listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2021. Finding: The District?s fiscal year 2021 Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition: The Single Audit package for the District's year ended June 30, 2021 and audit report was issued on December 27, 2021, as such data collection form should have been submitted to the Federal Audit Clearinghouse by January 27, 2022. Cause: The audit was not completed until December 27, 2021, which put a lot of strain on internal resources and the District could not independently track the submission of the data collection form. Effect or potential effect: Noncompliance with the requirements of the Uniform Guidance. Questioned costs: None Context: The June 30, 2021 Single Audit package. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: We recommend the District file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.

Finding 2022-001 Applicable to all assistance listing numbers and Federal Agencies (and pass-through entities) included on the accompanying schedule of expenditures of federal awards for the year ended June 30, 2021. Finding: The District?s fiscal year 2021 Single Audit package was not submitted to the Federal Clearinghouse within the required time period. Criteria: Uniform Guidance 2 CFR 200.512(a) requires that each organization?s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor?s report or nine months after the end of the audit period. Condition: The Single Audit package for the District's year ended June 30, 2021 and audit report was issued on December 27, 2021, as such data collection form should have been submitted to the Federal Audit Clearinghouse by January 27, 2022. Cause: The audit was not completed until December 27, 2021, which put a lot of strain on internal resources and the District could not independently track the submission of the data collection form. Effect or potential effect: Noncompliance with the requirements of the Uniform Guidance. Questioned costs: None Context: The June 30, 2021 Single Audit package. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: We recommend the District file the reporting package timely to the Federal Audit Clearinghouse. Views of responsible officials: Management agrees with this finding.

Condition: The Association did not submit the Single Audit Reporting Package to the Federal Audit Clearinghouse prior to the March 31, 2023 deadline. Criteria: Based on requirements set forth by 2 CFR section 200.512(a), the Association is required to submit the Single Audit Reporting Package to the Federal Audit Clearinghouse by the earlier of thirty calendar days after receipt of the auditor's reports or nine months after the end of the audit period. Cause: The Association?s audit was not completed and submitted to the Federal Audit Clearinghouse prior to the deadline for the year ended June 30, 2022. Effect: The Association was not in compliance with the requirements of 2 CFR section 200.512(a) regarding the timely submission of the Single Audit Reporting Package to the Federal Audit Clearinghouse. The effect will not allow the Association to be considered a low risk auditee for their next two annual Single Audits. Questioned Costs: N/A Recommendation: We recommend the Association complete and submit all future annual Single Audits to the Federal Audit Clearinghouse prior to the required deadline to ensure all compliance requirements are met. Views of Responsible Officials: Management concurs with the finding and has developed a plan to correct the finding.

Condition: The Association did not submit the Single Audit Reporting Package to the Federal Audit Clearinghouse prior to the March 31, 2023 deadline. Criteria: Based on requirements set forth by 2 CFR section 200.512(a), the Association is required to submit the Single Audit Reporting Package to the Federal Audit Clearinghouse by the earlier of thirty calendar days after receipt of the auditor's reports or nine months after the end of the audit period. Cause: The Association?s audit was not completed and submitted to the Federal Audit Clearinghouse prior to the deadline for the year ended June 30, 2022. Effect: The Association was not in compliance with the requirements of 2 CFR section 200.512(a) regarding the timely submission of the Single Audit Reporting Package to the Federal Audit Clearinghouse. The effect will not allow the Association to be considered a low risk auditee for their next two annual Single Audits. Questioned Costs: N/A Recommendation: We recommend the Association complete and submit all future annual Single Audits to the Federal Audit Clearinghouse prior to the required deadline to ensure all compliance requirements are met. Views of Responsible Officials: Management concurs with the finding and has developed a plan to correct the finding.

Questioned costs: None How were the questioned costs computed: Not applicable Condition: Tulsa Educare, Inc. did not submit the data collection form and reporting package to the Federal Audit Clearinghouse in a timely manner. Criteria: The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the complete the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor?s report or nine months after the end of the audit period. Cause: Tulsa Educare, Inc. relied on its service provider to submit the audit package to the Federal Audit Clearinghouse within the required timeline, and this was not completed by the service provider on a timely basis. Effect: Because of the above conditions, Tulsa Educare, Inc. was not in compliance with this compliance requirement. Recommendation: We recommend that Tulsa Educare, Inc. establish procedures to ensure the single audit package is submitted in a timely manner. View of Responsible Officials: Management agrees with the assessment and has committed to a corrective action plan.

Questioned costs: None How were the questioned costs computed: Not applicable Condition: Tulsa Educare, Inc. did not submit the data collection form and reporting package to the Federal Audit Clearinghouse in a timely manner. Criteria: The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the complete the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor?s report or nine months after the end of the audit period. Cause: Tulsa Educare, Inc. relied on its service provider to submit the audit package to the Federal Audit Clearinghouse within the required timeline, and this was not completed by the service provider on a timely basis. Effect: Because of the above conditions, Tulsa Educare, Inc. was not in compliance with this compliance requirement. Recommendation: We recommend that Tulsa Educare, Inc. establish procedures to ensure the single audit package is submitted in a timely manner. View of Responsible Officials: Management agrees with the assessment and has committed to a corrective action plan.

2022-002 Late Audit Submission Programs: 84.041 Impact Aid, 84.425 Covid-19 Education Stabilization Fund 84.027 Special Education - Grants to States Federal Agency: U.S. Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: L. Reporting CONDITION The District did not submit their audit for the fiscal year ending June 30, 2022, timely. The audit was submitted April 24, 2023, which was 24 days past the March 31, 2023 deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.

2022-002 Late Audit Submission Programs: 84.041 Impact Aid, 84.425 Covid-19 Education Stabilization Fund 84.027 Special Education - Grants to States Federal Agency: U.S. Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: L. Reporting CONDITION The District did not submit their audit for the fiscal year ending June 30, 2022, timely. The audit was submitted April 24, 2023, which was 24 days past the March 31, 2023 deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.

2022-002 Late Audit Submission Programs: 84.041 Impact Aid, 84.425 Covid-19 Education Stabilization Fund 84.027 Special Education - Grants to States Federal Agency: U.S. Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: L. Reporting CONDITION The District did not submit their audit for the fiscal year ending June 30, 2022, timely. The audit was submitted April 24, 2023, which was 24 days past the March 31, 2023 deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.

2022-002 Late Audit Submission Programs: 84.041 Impact Aid, 84.425 Covid-19 Education Stabilization Fund 84.027 Special Education - Grants to States Federal Agency: U.S. Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: L. Reporting CONDITION The District did not submit their audit for the fiscal year ending June 30, 2022, timely. The audit was submitted April 24, 2023, which was 24 days past the March 31, 2023 deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.

2022-002 Late Audit Submission Programs: 84.041 Impact Aid, 84.425 Covid-19 Education Stabilization Fund 84.027 Special Education - Grants to States Federal Agency: U.S. Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: L. Reporting CONDITION The District did not submit their audit for the fiscal year ending June 30, 2022, timely. The audit was submitted April 24, 2023, which was 24 days past the March 31, 2023 deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.

2022-002 Late Audit Submission Programs: 84.041 Impact Aid, 84.425 Covid-19 Education Stabilization Fund 84.027 Special Education - Grants to States Federal Agency: U.S. Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: L. Reporting CONDITION The District did not submit their audit for the fiscal year ending June 30, 2022, timely. The audit was submitted April 24, 2023, which was 24 days past the March 31, 2023 deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.

2022-002 Late Audit Submission Programs: 84.041 Impact Aid, 84.425 Covid-19 Education Stabilization Fund 84.027 Special Education - Grants to States Federal Agency: U.S. Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: L. Reporting CONDITION The District did not submit their audit for the fiscal year ending June 30, 2022, timely. The audit was submitted April 24, 2023, which was 24 days past the March 31, 2023 deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.

Finding 2022-002: Special Education Cluster (IDEA), CFDA 84.027 and 84.173 U.S. Department of Education Passed through the Colorado Department of Education Compliance Requirements: Reporting Grant No.: 4027, 6027, 4173, and 6173 Type of finding: Internal Control (material weakness) and noncompliance (material noncompliance) Criteria: A system of internal control includes the design, documentation, and monitoring of control activities over the application of accounting principles, anti-fraud programs, non-routine transactions, financial statement preparation, safeguarding of assets, and compliance with laws and regulations. Condition: The San Luis Valley Board of Cooperative Education Services (SLV BOCES) financial close and reporting was not performed timely or accurately for the fiscal year ended June 30, 2022. Accounting records were initially presented for audit on February 28, 2023. At that time, year-end accruals were not accurately recorded for revenues and expenditures. Cause: The SLV BOCES internal controls over the financial close and reporting process, specifically grant reconciliations were not completed timely due to turnover in key management positions. In addition, the general ledger chart of accounts for grants is cumbersome as it includes a separate account structure for each fiscal year. This creates additional burden and complexity for grant accounting throughout the year and grant reconciliation at year-end. Effect: As a result of this condition, the following areas were effected: 1.Audit adjustments were proposed to accurately reconcile grant activity to the general ledger accounting records. 2.Audit procedures identified $36,000 of unspent Improving Education Stability for Foster Youth grant funds that are required to be returned to the Colorado Department of Education. 3.The June 30, 2022 audit report was not submitted to the Colorado Office of the State Auditor by the extended deadline of March 1, 2023 in accordance with Local Government Audit Law. (Section 29-1-601, et seq., C.R.S.) 4.The June 30, 2022 single audit reporting package and data collection form was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period in accordance with Uniform Guidance (CFR 200.512(a)) Recommendation: The SLV BOCES should evaluate the duties and responsibilities for financial close and reporting and adopt policies and procedures that include segregation of duties to ensure financial close and reporting is performed timely and accurately. In addition, we recommend management consider the consolidation of the chart of accounts by grant to reduce the accounting and reconciliation burden. Management?s Response: See corrective action plan.

Finding 2022-002: Special Education Cluster (IDEA), CFDA 84.027 and 84.173 U.S. Department of Education Passed through the Colorado Department of Education Compliance Requirements: Reporting Grant No.: 4027, 6027, 4173, and 6173 Type of finding: Internal Control (material weakness) and noncompliance (material noncompliance) Criteria: A system of internal control includes the design, documentation, and monitoring of control activities over the application of accounting principles, anti-fraud programs, non-routine transactions, financial statement preparation, safeguarding of assets, and compliance with laws and regulations. Condition: The San Luis Valley Board of Cooperative Education Services (SLV BOCES) financial close and reporting was not performed timely or accurately for the fiscal year ended June 30, 2022. Accounting records were initially presented for audit on February 28, 2023. At that time, year-end accruals were not accurately recorded for revenues and expenditures. Cause: The SLV BOCES internal controls over the financial close and reporting process, specifically grant reconciliations were not completed timely due to turnover in key management positions. In addition, the general ledger chart of accounts for grants is cumbersome as it includes a separate account structure for each fiscal year. This creates additional burden and complexity for grant accounting throughout the year and grant reconciliation at year-end. Effect: As a result of this condition, the following areas were effected: 1.Audit adjustments were proposed to accurately reconcile grant activity to the general ledger accounting records. 2.Audit procedures identified $36,000 of unspent Improving Education Stability for Foster Youth grant funds that are required to be returned to the Colorado Department of Education. 3.The June 30, 2022 audit report was not submitted to the Colorado Office of the State Auditor by the extended deadline of March 1, 2023 in accordance with Local Government Audit Law. (Section 29-1-601, et seq., C.R.S.) 4.The June 30, 2022 single audit reporting package and data collection form was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period in accordance with Uniform Guidance (CFR 200.512(a)) Recommendation: The SLV BOCES should evaluate the duties and responsibilities for financial close and reporting and adopt policies and procedures that include segregation of duties to ensure financial close and reporting is performed timely and accurately. In addition, we recommend management consider the consolidation of the chart of accounts by grant to reduce the accounting and reconciliation burden. Management?s Response: See corrective action plan.

Finding 2022-002: Special Education Cluster (IDEA), CFDA 84.027 and 84.173 U.S. Department of Education Passed through the Colorado Department of Education Compliance Requirements: Reporting Grant No.: 4027, 6027, 4173, and 6173 Type of finding: Internal Control (material weakness) and noncompliance (material noncompliance) Criteria: A system of internal control includes the design, documentation, and monitoring of control activities over the application of accounting principles, anti-fraud programs, non-routine transactions, financial statement preparation, safeguarding of assets, and compliance with laws and regulations. Condition: The San Luis Valley Board of Cooperative Education Services (SLV BOCES) financial close and reporting was not performed timely or accurately for the fiscal year ended June 30, 2022. Accounting records were initially presented for audit on February 28, 2023. At that time, year-end accruals were not accurately recorded for revenues and expenditures. Cause: The SLV BOCES internal controls over the financial close and reporting process, specifically grant reconciliations were not completed timely due to turnover in key management positions. In addition, the general ledger chart of accounts for grants is cumbersome as it includes a separate account structure for each fiscal year. This creates additional burden and complexity for grant accounting throughout the year and grant reconciliation at year-end. Effect: As a result of this condition, the following areas were effected: 1.Audit adjustments were proposed to accurately reconcile grant activity to the general ledger accounting records. 2.Audit procedures identified $36,000 of unspent Improving Education Stability for Foster Youth grant funds that are required to be returned to the Colorado Department of Education. 3.The June 30, 2022 audit report was not submitted to the Colorado Office of the State Auditor by the extended deadline of March 1, 2023 in accordance with Local Government Audit Law. (Section 29-1-601, et seq., C.R.S.) 4.The June 30, 2022 single audit reporting package and data collection form was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period in accordance with Uniform Guidance (CFR 200.512(a)) Recommendation: The SLV BOCES should evaluate the duties and responsibilities for financial close and reporting and adopt policies and procedures that include segregation of duties to ensure financial close and reporting is performed timely and accurately. In addition, we recommend management consider the consolidation of the chart of accounts by grant to reduce the accounting and reconciliation burden. Management?s Response: See corrective action plan.

Finding 2022-002: Special Education Cluster (IDEA), CFDA 84.027 and 84.173 U.S. Department of Education Passed through the Colorado Department of Education Compliance Requirements: Reporting Grant No.: 4027, 6027, 4173, and 6173 Type of finding: Internal Control (material weakness) and noncompliance (material noncompliance) Criteria: A system of internal control includes the design, documentation, and monitoring of control activities over the application of accounting principles, anti-fraud programs, non-routine transactions, financial statement preparation, safeguarding of assets, and compliance with laws and regulations. Condition: The San Luis Valley Board of Cooperative Education Services (SLV BOCES) financial close and reporting was not performed timely or accurately for the fiscal year ended June 30, 2022. Accounting records were initially presented for audit on February 28, 2023. At that time, year-end accruals were not accurately recorded for revenues and expenditures. Cause: The SLV BOCES internal controls over the financial close and reporting process, specifically grant reconciliations were not completed timely due to turnover in key management positions. In addition, the general ledger chart of accounts for grants is cumbersome as it includes a separate account structure for each fiscal year. This creates additional burden and complexity for grant accounting throughout the year and grant reconciliation at year-end. Effect: As a result of this condition, the following areas were effected: 1.Audit adjustments were proposed to accurately reconcile grant activity to the general ledger accounting records. 2.Audit procedures identified $36,000 of unspent Improving Education Stability for Foster Youth grant funds that are required to be returned to the Colorado Department of Education. 3.The June 30, 2022 audit report was not submitted to the Colorado Office of the State Auditor by the extended deadline of March 1, 2023 in accordance with Local Government Audit Law. (Section 29-1-601, et seq., C.R.S.) 4.The June 30, 2022 single audit reporting package and data collection form was not submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period in accordance with Uniform Guidance (CFR 200.512(a)) Recommendation: The SLV BOCES should evaluate the duties and responsibilities for financial close and reporting and adopt policies and procedures that include segregation of duties to ensure financial close and reporting is performed timely and accurately. In addition, we recommend management consider the consolidation of the chart of accounts by grant to reduce the accounting and reconciliation burden. Management?s Response: See corrective action plan.

2022-001 Filing of Single Audit Report Material Weakness & Noncompliance Federal Program ? All programs Criteria - Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the audit period. Condition ? The Organization did not submit the Single Audit Reporting Package for the year ended June 30, 2021, within nine months after the end of the audit period (March 31, 2022). Cause ? Audit fieldwork for the year began late which caused scheduling conflicts for the auditor during their peak months of operations, which delayed the audit further. In addition, there was a break-down of communication between the auditor and the Organization which caused further delays. These delays all together cause the audit and data collection form to not be completed by the nine-month due date. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Organization not qualifying for low-risk auditee status for the subsequent year?s Single Audit. Recommendation ? We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Management?s Response and Corrective Action ? The Organization transitioned to a contract accountant in June 2022 and continues to work with the contract financial team who plans to have the books closed in a timely manner going forward. The Organization is also actively working with their auditing firm to improve communication during the audit so a future breakdown in communication does not occur. This transition and this new plan were not implemented until after the end of fiscal year 2022, so a repeat finding is expected for the 2022 audit, but the issue will be mitigated for the 2023 audit. Responsible party for corrective action ? Patti Tototzintle, President and CEO Repeat finding ? No

2022-001 Filing of Single Audit Report Material Weakness & Noncompliance Federal Program ? All programs Criteria - Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the audit period. Condition ? The Organization did not submit the Single Audit Reporting Package for the year ended June 30, 2021, within nine months after the end of the audit period (March 31, 2022). Cause ? Audit fieldwork for the year began late which caused scheduling conflicts for the auditor during their peak months of operations, which delayed the audit further. In addition, there was a break-down of communication between the auditor and the Organization which caused further delays. These delays all together cause the audit and data collection form to not be completed by the nine-month due date. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Organization not qualifying for low-risk auditee status for the subsequent year?s Single Audit. Recommendation ? We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Management?s Response and Corrective Action ? The Organization transitioned to a contract accountant in June 2022 and continues to work with the contract financial team who plans to have the books closed in a timely manner going forward. The Organization is also actively working with their auditing firm to improve communication during the audit so a future breakdown in communication does not occur. This transition and this new plan were not implemented until after the end of fiscal year 2022, so a repeat finding is expected for the 2022 audit, but the issue will be mitigated for the 2023 audit. Responsible party for corrective action ? Patti Tototzintle, President and CEO Repeat finding ? No

2022-001 Filing of Single Audit Report Material Weakness & Noncompliance Federal Program ? All programs Criteria - Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the audit period. Condition ? The Organization did not submit the Single Audit Reporting Package for the year ended June 30, 2021, within nine months after the end of the audit period (March 31, 2022). Cause ? Audit fieldwork for the year began late which caused scheduling conflicts for the auditor during their peak months of operations, which delayed the audit further. In addition, there was a break-down of communication between the auditor and the Organization which caused further delays. These delays all together cause the audit and data collection form to not be completed by the nine-month due date. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Organization not qualifying for low-risk auditee status for the subsequent year?s Single Audit. Recommendation ? We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Management?s Response and Corrective Action ? The Organization transitioned to a contract accountant in June 2022 and continues to work with the contract financial team who plans to have the books closed in a timely manner going forward. The Organization is also actively working with their auditing firm to improve communication during the audit so a future breakdown in communication does not occur. This transition and this new plan were not implemented until after the end of fiscal year 2022, so a repeat finding is expected for the 2022 audit, but the issue will be mitigated for the 2023 audit. Responsible party for corrective action ? Patti Tototzintle, President and CEO Repeat finding ? No

2022-001 Filing of Single Audit Report Material Weakness & Noncompliance Federal Program ? All programs Criteria - Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the audit period. Condition ? The Organization did not submit the Single Audit Reporting Package for the year ended June 30, 2021, within nine months after the end of the audit period (March 31, 2022). Cause ? Audit fieldwork for the year began late which caused scheduling conflicts for the auditor during their peak months of operations, which delayed the audit further. In addition, there was a break-down of communication between the auditor and the Organization which caused further delays. These delays all together cause the audit and data collection form to not be completed by the nine-month due date. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Organization not qualifying for low-risk auditee status for the subsequent year?s Single Audit. Recommendation ? We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Management?s Response and Corrective Action ? The Organization transitioned to a contract accountant in June 2022 and continues to work with the contract financial team who plans to have the books closed in a timely manner going forward. The Organization is also actively working with their auditing firm to improve communication during the audit so a future breakdown in communication does not occur. This transition and this new plan were not implemented until after the end of fiscal year 2022, so a repeat finding is expected for the 2022 audit, but the issue will be mitigated for the 2023 audit. Responsible party for corrective action ? Patti Tototzintle, President and CEO Repeat finding ? No

2022-001 Filing of Single Audit Report Material Weakness & Noncompliance Federal Program ? All programs Criteria - Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the audit period. Condition ? The Organization did not submit the Single Audit Reporting Package for the year ended June 30, 2021, within nine months after the end of the audit period (March 31, 2022). Cause ? Audit fieldwork for the year began late which caused scheduling conflicts for the auditor during their peak months of operations, which delayed the audit further. In addition, there was a break-down of communication between the auditor and the Organization which caused further delays. These delays all together cause the audit and data collection form to not be completed by the nine-month due date. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Organization not qualifying for low-risk auditee status for the subsequent year?s Single Audit. Recommendation ? We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Management?s Response and Corrective Action ? The Organization transitioned to a contract accountant in June 2022 and continues to work with the contract financial team who plans to have the books closed in a timely manner going forward. The Organization is also actively working with their auditing firm to improve communication during the audit so a future breakdown in communication does not occur. This transition and this new plan were not implemented until after the end of fiscal year 2022, so a repeat finding is expected for the 2022 audit, but the issue will be mitigated for the 2023 audit. Responsible party for corrective action ? Patti Tototzintle, President and CEO Repeat finding ? No

2022-001 Filing of Single Audit Report Material Weakness & Noncompliance Federal Program ? All programs Criteria - Pursuant to 2 CFR section 200.512(a), the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the audit period. Condition ? The Organization did not submit the Single Audit Reporting Package for the year ended June 30, 2021, within nine months after the end of the audit period (March 31, 2022). Cause ? Audit fieldwork for the year began late which caused scheduling conflicts for the auditor during their peak months of operations, which delayed the audit further. In addition, there was a break-down of communication between the auditor and the Organization which caused further delays. These delays all together cause the audit and data collection form to not be completed by the nine-month due date. Effect ? Failure to submit the required Single Audit Reporting Package timely automatically results in the Organization not qualifying for low-risk auditee status for the subsequent year?s Single Audit. Recommendation ? We recommend the Organization update their policies and procedures to ensure timely submission of the Reporting Package. Management?s Response and Corrective Action ? The Organization transitioned to a contract accountant in June 2022 and continues to work with the contract financial team who plans to have the books closed in a timely manner going forward. The Organization is also actively working with their auditing firm to improve communication during the audit so a future breakdown in communication does not occur. This transition and this new plan were not implemented until after the end of fiscal year 2022, so a repeat finding is expected for the 2022 audit, but the issue will be mitigated for the 2023 audit. Responsible party for corrective action ? Patti Tototzintle, President and CEO Repeat finding ? No

2022-007: Internal Control over Compliance with Reporting Requirements Program: U.S. Department of Housing and Urban Development AL Number: 14.195 AL Name: Section 8 Housing Assistance Payments Program Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Milwaukee Housing Authority February 4, 2009 through February 4, 2024 City of Milwaukee Housing Authority January 27, 2014 through January 27, 2029 City of Madison Housing Authority June 1, 2016 through May 31, 2031 City of Madison Housing Authority June 20, 2018 through June 20, 2033 Dane County Housing Authority June 1, 2016 through May 29, 2031 Dane County Housing Authority June 20, 2018 through June 20, 2033 Milwaukee County Housing July 15, 2011 through July 15, 2026 Chicago Housing Authority March 1, 2012 through February 28, 2041 Chicago Housing Authority March 1, 2012 through March 31, 2043 Chicago Housing Authority April 1, 2013 through March 31, 2044 Chicago Housing Authority August 27, 2014 through July 31, 2044 Chicago Housing Authority January 1, 2016 through December 31, 2035 Chicago Housing Authority January 9, 2020 through December 31, 2034 Chicago Housing Authority January 23, 2020 through December 31, 2034 Chicago Housing Authority March 1, 2020 through February 28, 2050 Program: U.S. Department of Housing and Urban Development AL Number: 14.249 AL Name: Section 8 Moderate Rehabilitation Single Room Occupancy Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period Chicago Housing Authority March 12, 2020 through March 13, 2022 Chicago Housing Authority December 17, 2020 through December 16, 2022 Program: U.S. Department of Housing and Urban Development AL Number: 14.239 AL Name: Home Investment Partnerships Program Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Chicago April 22, 2019 through April 21, 2034 City of Chicago June 15, 1993 through July 13, 2033 City of Chicago October 3, 2003 through July 2050 Illinois Housing Development Authority January 16, 1997 through January 16, 2027 City of Milwaukee April 17, 2008 through April 21, 2028 City of Milwaukee November 1, 2017 through October 31, 2051 City of Milwaukee August 21, 2020 through August 20, 2040 Program: U.S. Department of Housing and Urban Development AL Number: 14.181 AL Name: Supportive Housing for Persons with Disabilities (Section 811) Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Chicago January 1, 2003 through January 1, 2043 City of Chicago March 30, 2007 through March 30, 2039 Program: U.S. Department of State AL Number: 19.016 AL Name: Iraq Assistance Program Grant Award Numbers Under the Uniform Guidance Requirements: Direct Award Number Award Period SLMAQM19GR2288 September 29, 2019 through June 30,2022 Program: U.S. Department of State AL Number: 19.518 AL Name: Overseas Refugee Assistance Program for Western Hemisphere Grant Award Numbers Under the Uniform Guidance Requirements: Direct Award Number Award Period SPRMCO20CA0209 September 20, 2020 through September 29, 2021 N/A September 20, 2021 through September 29, 2022 Program: U.S. Department of Veterans Affairs AL Number: 64.033 AL Name: VA Supportive Services for Veteran Families Program Grant Award Numbers under the Uniform Guidance Requirements: Direct Award Number Award Period SPRMCO19CA0226 December 1, 2020 through June 30, 2022 N/A December 1, 2020 through June 30, 2022 N/A February 1, 2021 through September 30, 2022 SPRMCO20CA0209 October 1, 2019 through September 30, 2022 Criteria ? CFR ?200.303 Internal Controls, section (a) states the Organization must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Management is responsible for establishing and maintaining a system of internal control that should include controls over its reporting process. 2 CFR section 200.512(a) states that the data collection form and reporting package must be submitted the earlier of 30 calendar days after receipt of the auditor?s reports or nine months after the end of the audit period to the Federal Audit Clearinghouse (FAC). If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Uniform Guidance does not have a provision addressing whether the cognizant or oversight agencies may extend due dates. Condition ? During the fiscal year, we noted that the Organization failed to submit the data collection form and reporting package to FAC on a timely basis. Cause ? Policies and procedures were not appropriately adhered to in certain instances to ensure timely submission of required reports to federal funding source. Questioned Costs ? There are no questioned costs as the items outlined above are internal control related matters and not matters related to the accuracy of the information reported to the awarding agency in the financial reports. Effect - Failure to properly track all reporting submission deadlines could lead to delayed funding. Repeat Finding - This finding is not a repeat finding. Recommendation - We recommend management adhere to its documented policies and procedures and the documented instructions for reporting requirements contained within grant agreements to ensure that the required reports are properly submitted to the federal government on a timely basis. Further, we recommend management implement a policy of formally tracking all required reports and submission deadlines to address the delayed submissions identified above. Views of Responsible Officials - Management agrees with the finding and takes responsibility to comply with reporting requirements. Management plans to adhere to documented policies and procedures and documented instructions for reporting requirements contained within grant agreements to ensure that the required reports are properly submitted to the federal government on a timely basis.

2022-007: Internal Control over Compliance with Reporting Requirements Program: U.S. Department of Housing and Urban Development AL Number: 14.195 AL Name: Section 8 Housing Assistance Payments Program Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Milwaukee Housing Authority February 4, 2009 through February 4, 2024 City of Milwaukee Housing Authority January 27, 2014 through January 27, 2029 City of Madison Housing Authority June 1, 2016 through May 31, 2031 City of Madison Housing Authority June 20, 2018 through June 20, 2033 Dane County Housing Authority June 1, 2016 through May 29, 2031 Dane County Housing Authority June 20, 2018 through June 20, 2033 Milwaukee County Housing July 15, 2011 through July 15, 2026 Chicago Housing Authority March 1, 2012 through February 28, 2041 Chicago Housing Authority March 1, 2012 through March 31, 2043 Chicago Housing Authority April 1, 2013 through March 31, 2044 Chicago Housing Authority August 27, 2014 through July 31, 2044 Chicago Housing Authority January 1, 2016 through December 31, 2035 Chicago Housing Authority January 9, 2020 through December 31, 2034 Chicago Housing Authority January 23, 2020 through December 31, 2034 Chicago Housing Authority March 1, 2020 through February 28, 2050 Program: U.S. Department of Housing and Urban Development AL Number: 14.249 AL Name: Section 8 Moderate Rehabilitation Single Room Occupancy Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period Chicago Housing Authority March 12, 2020 through March 13, 2022 Chicago Housing Authority December 17, 2020 through December 16, 2022 Program: U.S. Department of Housing and Urban Development AL Number: 14.239 AL Name: Home Investment Partnerships Program Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Chicago April 22, 2019 through April 21, 2034 City of Chicago June 15, 1993 through July 13, 2033 City of Chicago October 3, 2003 through July 2050 Illinois Housing Development Authority January 16, 1997 through January 16, 2027 City of Milwaukee April 17, 2008 through April 21, 2028 City of Milwaukee November 1, 2017 through October 31, 2051 City of Milwaukee August 21, 2020 through August 20, 2040 Program: U.S. Department of Housing and Urban Development AL Number: 14.181 AL Name: Supportive Housing for Persons with Disabilities (Section 811) Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Chicago January 1, 2003 through January 1, 2043 City of Chicago March 30, 2007 through March 30, 2039 Program: U.S. Department of State AL Number: 19.016 AL Name: Iraq Assistance Program Grant Award Numbers Under the Uniform Guidance Requirements: Direct Award Number Award Period SLMAQM19GR2288 September 29, 2019 through June 30,2022 Program: U.S. Department of State AL Number: 19.518 AL Name: Overseas Refugee Assistance Program for Western Hemisphere Grant Award Numbers Under the Uniform Guidance Requirements: Direct Award Number Award Period SPRMCO20CA0209 September 20, 2020 through September 29, 2021 N/A September 20, 2021 through September 29, 2022 Program: U.S. Department of Veterans Affairs AL Number: 64.033 AL Name: VA Supportive Services for Veteran Families Program Grant Award Numbers under the Uniform Guidance Requirements: Direct Award Number Award Period SPRMCO19CA0226 December 1, 2020 through June 30, 2022 N/A December 1, 2020 through June 30, 2022 N/A February 1, 2021 through September 30, 2022 SPRMCO20CA0209 October 1, 2019 through September 30, 2022 Criteria ? CFR ?200.303 Internal Controls, section (a) states the Organization must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Management is responsible for establishing and maintaining a system of internal control that should include controls over its reporting process. 2 CFR section 200.512(a) states that the data collection form and reporting package must be submitted the earlier of 30 calendar days after receipt of the auditor?s reports or nine months after the end of the audit period to the Federal Audit Clearinghouse (FAC). If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Uniform Guidance does not have a provision addressing whether the cognizant or oversight agencies may extend due dates. Condition ? During the fiscal year, we noted that the Organization failed to submit the data collection form and reporting package to FAC on a timely basis. Cause ? Policies and procedures were not appropriately adhered to in certain instances to ensure timely submission of required reports to federal funding source. Questioned Costs ? There are no questioned costs as the items outlined above are internal control related matters and not matters related to the accuracy of the information reported to the awarding agency in the financial reports. Effect - Failure to properly track all reporting submission deadlines could lead to delayed funding. Repeat Finding - This finding is not a repeat finding. Recommendation - We recommend management adhere to its documented policies and procedures and the documented instructions for reporting requirements contained within grant agreements to ensure that the required reports are properly submitted to the federal government on a timely basis. Further, we recommend management implement a policy of formally tracking all required reports and submission deadlines to address the delayed submissions identified above. Views of Responsible Officials - Management agrees with the finding and takes responsibility to comply with reporting requirements. Management plans to adhere to documented policies and procedures and documented instructions for reporting requirements contained within grant agreements to ensure that the required reports are properly submitted to the federal government on a timely basis.

2022-007: Internal Control over Compliance with Reporting Requirements Program: U.S. Department of Housing and Urban Development AL Number: 14.195 AL Name: Section 8 Housing Assistance Payments Program Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Milwaukee Housing Authority February 4, 2009 through February 4, 2024 City of Milwaukee Housing Authority January 27, 2014 through January 27, 2029 City of Madison Housing Authority June 1, 2016 through May 31, 2031 City of Madison Housing Authority June 20, 2018 through June 20, 2033 Dane County Housing Authority June 1, 2016 through May 29, 2031 Dane County Housing Authority June 20, 2018 through June 20, 2033 Milwaukee County Housing July 15, 2011 through July 15, 2026 Chicago Housing Authority March 1, 2012 through February 28, 2041 Chicago Housing Authority March 1, 2012 through March 31, 2043 Chicago Housing Authority April 1, 2013 through March 31, 2044 Chicago Housing Authority August 27, 2014 through July 31, 2044 Chicago Housing Authority January 1, 2016 through December 31, 2035 Chicago Housing Authority January 9, 2020 through December 31, 2034 Chicago Housing Authority January 23, 2020 through December 31, 2034 Chicago Housing Authority March 1, 2020 through February 28, 2050 Program: U.S. Department of Housing and Urban Development AL Number: 14.249 AL Name: Section 8 Moderate Rehabilitation Single Room Occupancy Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period Chicago Housing Authority March 12, 2020 through March 13, 2022 Chicago Housing Authority December 17, 2020 through December 16, 2022 Program: U.S. Department of Housing and Urban Development AL Number: 14.239 AL Name: Home Investment Partnerships Program Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Chicago April 22, 2019 through April 21, 2034 City of Chicago June 15, 1993 through July 13, 2033 City of Chicago October 3, 2003 through July 2050 Illinois Housing Development Authority January 16, 1997 through January 16, 2027 City of Milwaukee April 17, 2008 through April 21, 2028 City of Milwaukee November 1, 2017 through October 31, 2051 City of Milwaukee August 21, 2020 through August 20, 2040 Program: U.S. Department of Housing and Urban Development AL Number: 14.181 AL Name: Supportive Housing for Persons with Disabilities (Section 811) Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Chicago January 1, 2003 through January 1, 2043 City of Chicago March 30, 2007 through March 30, 2039 Program: U.S. Department of State AL Number: 19.016 AL Name: Iraq Assistance Program Grant Award Numbers Under the Uniform Guidance Requirements: Direct Award Number Award Period SLMAQM19GR2288 September 29, 2019 through June 30,2022 Program: U.S. Department of State AL Number: 19.518 AL Name: Overseas Refugee Assistance Program for Western Hemisphere Grant Award Numbers Under the Uniform Guidance Requirements: Direct Award Number Award Period SPRMCO20CA0209 September 20, 2020 through September 29, 2021 N/A September 20, 2021 through September 29, 2022 Program: U.S. Department of Veterans Affairs AL Number: 64.033 AL Name: VA Supportive Services for Veteran Families Program Grant Award Numbers under the Uniform Guidance Requirements: Direct Award Number Award Period SPRMCO19CA0226 December 1, 2020 through June 30, 2022 N/A December 1, 2020 through June 30, 2022 N/A February 1, 2021 through September 30, 2022 SPRMCO20CA0209 October 1, 2019 through September 30, 2022 Criteria ? CFR ?200.303 Internal Controls, section (a) states the Organization must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Management is responsible for establishing and maintaining a system of internal control that should include controls over its reporting process. 2 CFR section 200.512(a) states that the data collection form and reporting package must be submitted the earlier of 30 calendar days after receipt of the auditor?s reports or nine months after the end of the audit period to the Federal Audit Clearinghouse (FAC). If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Uniform Guidance does not have a provision addressing whether the cognizant or oversight agencies may extend due dates. Condition ? During the fiscal year, we noted that the Organization failed to submit the data collection form and reporting package to FAC on a timely basis. Cause ? Policies and procedures were not appropriately adhered to in certain instances to ensure timely submission of required reports to federal funding source. Questioned Costs ? There are no questioned costs as the items outlined above are internal control related matters and not matters related to the accuracy of the information reported to the awarding agency in the financial reports. Effect - Failure to properly track all reporting submission deadlines could lead to delayed funding. Repeat Finding - This finding is not a repeat finding. Recommendation - We recommend management adhere to its documented policies and procedures and the documented instructions for reporting requirements contained within grant agreements to ensure that the required reports are properly submitted to the federal government on a timely basis. Further, we recommend management implement a policy of formally tracking all required reports and submission deadlines to address the delayed submissions identified above. Views of Responsible Officials - Management agrees with the finding and takes responsibility to comply with reporting requirements. Management plans to adhere to documented policies and procedures and documented instructions for reporting requirements contained within grant agreements to ensure that the required reports are properly submitted to the federal government on a timely basis.

2022-007: Internal Control over Compliance with Reporting Requirements Program: U.S. Department of Housing and Urban Development AL Number: 14.195 AL Name: Section 8 Housing Assistance Payments Program Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Milwaukee Housing Authority February 4, 2009 through February 4, 2024 City of Milwaukee Housing Authority January 27, 2014 through January 27, 2029 City of Madison Housing Authority June 1, 2016 through May 31, 2031 City of Madison Housing Authority June 20, 2018 through June 20, 2033 Dane County Housing Authority June 1, 2016 through May 29, 2031 Dane County Housing Authority June 20, 2018 through June 20, 2033 Milwaukee County Housing July 15, 2011 through July 15, 2026 Chicago Housing Authority March 1, 2012 through February 28, 2041 Chicago Housing Authority March 1, 2012 through March 31, 2043 Chicago Housing Authority April 1, 2013 through March 31, 2044 Chicago Housing Authority August 27, 2014 through July 31, 2044 Chicago Housing Authority January 1, 2016 through December 31, 2035 Chicago Housing Authority January 9, 2020 through December 31, 2034 Chicago Housing Authority January 23, 2020 through December 31, 2034 Chicago Housing Authority March 1, 2020 through February 28, 2050 Program: U.S. Department of Housing and Urban Development AL Number: 14.249 AL Name: Section 8 Moderate Rehabilitation Single Room Occupancy Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period Chicago Housing Authority March 12, 2020 through March 13, 2022 Chicago Housing Authority December 17, 2020 through December 16, 2022 Program: U.S. Department of Housing and Urban Development AL Number: 14.239 AL Name: Home Investment Partnerships Program Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Chicago April 22, 2019 through April 21, 2034 City of Chicago June 15, 1993 through July 13, 2033 City of Chicago October 3, 2003 through July 2050 Illinois Housing Development Authority January 16, 1997 through January 16, 2027 City of Milwaukee April 17, 2008 through April 21, 2028 City of Milwaukee November 1, 2017 through October 31, 2051 City of Milwaukee August 21, 2020 through August 20, 2040 Program: U.S. Department of Housing and Urban Development AL Number: 14.181 AL Name: Supportive Housing for Persons with Disabilities (Section 811) Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Chicago January 1, 2003 through January 1, 2043 City of Chicago March 30, 2007 through March 30, 2039 Program: U.S. Department of State AL Number: 19.016 AL Name: Iraq Assistance Program Grant Award Numbers Under the Uniform Guidance Requirements: Direct Award Number Award Period SLMAQM19GR2288 September 29, 2019 through June 30,2022 Program: U.S. Department of State AL Number: 19.518 AL Name: Overseas Refugee Assistance Program for Western Hemisphere Grant Award Numbers Under the Uniform Guidance Requirements: Direct Award Number Award Period SPRMCO20CA0209 September 20, 2020 through September 29, 2021 N/A September 20, 2021 through September 29, 2022 Program: U.S. Department of Veterans Affairs AL Number: 64.033 AL Name: VA Supportive Services for Veteran Families Program Grant Award Numbers under the Uniform Guidance Requirements: Direct Award Number Award Period SPRMCO19CA0226 December 1, 2020 through June 30, 2022 N/A December 1, 2020 through June 30, 2022 N/A February 1, 2021 through September 30, 2022 SPRMCO20CA0209 October 1, 2019 through September 30, 2022 Criteria ? CFR ?200.303 Internal Controls, section (a) states the Organization must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Management is responsible for establishing and maintaining a system of internal control that should include controls over its reporting process. 2 CFR section 200.512(a) states that the data collection form and reporting package must be submitted the earlier of 30 calendar days after receipt of the auditor?s reports or nine months after the end of the audit period to the Federal Audit Clearinghouse (FAC). If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Uniform Guidance does not have a provision addressing whether the cognizant or oversight agencies may extend due dates. Condition ? During the fiscal year, we noted that the Organization failed to submit the data collection form and reporting package to FAC on a timely basis. Cause ? Policies and procedures were not appropriately adhered to in certain instances to ensure timely submission of required reports to federal funding source. Questioned Costs ? There are no questioned costs as the items outlined above are internal control related matters and not matters related to the accuracy of the information reported to the awarding agency in the financial reports. Effect - Failure to properly track all reporting submission deadlines could lead to delayed funding. Repeat Finding - This finding is not a repeat finding. Recommendation - We recommend management adhere to its documented policies and procedures and the documented instructions for reporting requirements contained within grant agreements to ensure that the required reports are properly submitted to the federal government on a timely basis. Further, we recommend management implement a policy of formally tracking all required reports and submission deadlines to address the delayed submissions identified above. Views of Responsible Officials - Management agrees with the finding and takes responsibility to comply with reporting requirements. Management plans to adhere to documented policies and procedures and documented instructions for reporting requirements contained within grant agreements to ensure that the required reports are properly submitted to the federal government on a timely basis.

2022-007: Internal Control over Compliance with Reporting Requirements Program: U.S. Department of Housing and Urban Development AL Number: 14.195 AL Name: Section 8 Housing Assistance Payments Program Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Milwaukee Housing Authority February 4, 2009 through February 4, 2024 City of Milwaukee Housing Authority January 27, 2014 through January 27, 2029 City of Madison Housing Authority June 1, 2016 through May 31, 2031 City of Madison Housing Authority June 20, 2018 through June 20, 2033 Dane County Housing Authority June 1, 2016 through May 29, 2031 Dane County Housing Authority June 20, 2018 through June 20, 2033 Milwaukee County Housing July 15, 2011 through July 15, 2026 Chicago Housing Authority March 1, 2012 through February 28, 2041 Chicago Housing Authority March 1, 2012 through March 31, 2043 Chicago Housing Authority April 1, 2013 through March 31, 2044 Chicago Housing Authority August 27, 2014 through July 31, 2044 Chicago Housing Authority January 1, 2016 through December 31, 2035 Chicago Housing Authority January 9, 2020 through December 31, 2034 Chicago Housing Authority January 23, 2020 through December 31, 2034 Chicago Housing Authority March 1, 2020 through February 28, 2050 Program: U.S. Department of Housing and Urban Development AL Number: 14.249 AL Name: Section 8 Moderate Rehabilitation Single Room Occupancy Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period Chicago Housing Authority March 12, 2020 through March 13, 2022 Chicago Housing Authority December 17, 2020 through December 16, 2022 Program: U.S. Department of Housing and Urban Development AL Number: 14.239 AL Name: Home Investment Partnerships Program Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Chicago April 22, 2019 through April 21, 2034 City of Chicago June 15, 1993 through July 13, 2033 City of Chicago October 3, 2003 through July 2050 Illinois Housing Development Authority January 16, 1997 through January 16, 2027 City of Milwaukee April 17, 2008 through April 21, 2028 City of Milwaukee November 1, 2017 through October 31, 2051 City of Milwaukee August 21, 2020 through August 20, 2040 Program: U.S. Department of Housing and Urban Development AL Number: 14.181 AL Name: Supportive Housing for Persons with Disabilities (Section 811) Grant Award Numbers under the Uniform Guidance Requirements: Pass-Through Entity Award Period City of Chicago January 1, 2003 through January 1, 2043 City of Chicago March 30, 2007 through March 30, 2039 Program: U.S. Department of State AL Number: 19.016 AL Name: Iraq Assistance Program Grant Award Numbers Under the Uniform Guidance Requirements: Direct Award Number Award Period SLMAQM19GR2288 September 29, 2019 through June 30,2022 Program: U.S. Department of State AL Number: 19.518 AL Name: Overseas Refugee Assistance Program for Western Hemisphere Grant Award Numbers Under the Uniform Guidance Requirements: Direct Award Number Award Period SPRMCO20CA0209 September 20, 2020 through September 29, 2021 N/A September 20, 2021 through September 29, 2022 Program: U.S. Department of Veterans Affairs AL Number: 64.033 AL Name: VA Supportive Services for Veteran Families Program Grant Award Numbers under the Uniform Guidance Requirements: Direct Award Number Award Period SPRMCO19CA0226 December 1, 2020 through June 30, 2022 N/A December 1, 2020 through June 30, 2022 N/A February 1, 2021 through September 30, 2022 SPRMCO20CA0209 October 1, 2019 through September 30, 2022 Criteria ? CFR ?200.303 Internal Controls, section (a) states the Organization must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Management is responsible for establishing and maintaining a system of internal control that should include controls over its reporting process. 2 CFR section 200.512(a) states that the data collection form and reporting package must be submitted the earlier of 30 calendar days after receipt of the auditor?s reports or nine months after the end of the audit period to the Federal Audit Clearinghouse (FAC). If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day. The Uniform Guidance does not have a provision addressing whether the cognizant or oversight agencies may extend due dates. Condition ? During the fiscal year, we noted that the Organization failed to submit the data collection form and reporting package to FAC on a timely basis. Cause ? Policies and procedures were not appropriately adhered to in certain instances to ensure timely submission of required reports to federal funding source. Questioned Costs ? There are no questioned costs as the items outlined above are internal control related matters and not matters related to the accuracy of the information reported to the awarding agency in the financial reports. Effect - Failure to properly track all reporting submission deadlines could lead to delayed funding. Repeat Finding - This finding is not a repeat finding. Recommendation - We recommend management adhere to its documented policies and procedures and the documented instructions for reporting requirements contained within grant agreements to ensure that the required reports are properly submitted to the federal government on a timely basis. Further, we recommend management implement a policy of formally tracking all required reports and submission deadlines to address the delayed submissions identified above. Views of Responsible Officials - Management agrees with the finding and takes responsibility to comply with reporting requirements. Management plans to adhere to documented policies and procedures and documented instructions for reporting requirements contained within grant agreements to ensure that the required reports are properly submitted to the federal government on a timely basis.

2022 ? 001 Late Audit Submission Funding agency: U.S. Department of Treasury Title: Coronavirus State and Local Fiscal Recovery Fund and National Infrastructure Investments Discretionary Grant Program AL number: 21.027 and 20.933 Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from auditors or nine months after the end of the audit period. Condition: The fiscal year audit and reporting package is being submitted after the required due date. Context: We reviewed the audit submission date in comparison to the required due date. Questioned Costs: To be determined by grantor. Effect: There is a potential for suspension or cessation of federal and/or state funding. Cause: The ongoing COVID-19 pandemic caused delays that lead to the audit missing the required deadline. Repeat: No Auditor's Recommendation: The City and the audit firm should work together to take the necessary steps to ensure that the audited financial statements are submitted within the required timeframe. View of Responsible Officials: The City of Kalispell will work with Wipfli audit firm to ensure the audited financial statements are submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period

2022 ? 001 Late Audit Submission Funding agency: U.S. Department of Treasury Title: Coronavirus State and Local Fiscal Recovery Fund and National Infrastructure Investments Discretionary Grant Program AL number: 21.027 and 20.933 Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from auditors or nine months after the end of the audit period. Condition: The fiscal year audit and reporting package is being submitted after the required due date. Context: We reviewed the audit submission date in comparison to the required due date. Questioned Costs: To be determined by grantor. Effect: There is a potential for suspension or cessation of federal and/or state funding. Cause: The ongoing COVID-19 pandemic caused delays that lead to the audit missing the required deadline. Repeat: No Auditor's Recommendation: The City and the audit firm should work together to take the necessary steps to ensure that the audited financial statements are submitted within the required timeframe. View of Responsible Officials: The City of Kalispell will work with Wipfli audit firm to ensure the audited financial statements are submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period

Criteria: 2 CFR Section 200.512 (a)(1) states that Idaho Harm Reduction Project?s single audit must be completed and the data collection form must be submitted nine months after the end of the audit period. Condition: The Organization did not complete and submit its single audit within nine months after the end of the audit period. Cause: The Organization does not have a proper internal control structure in place to complete its single audit requirement in a timely manner. Effect: Users of the financial statements do not have timely access to the Organization?s financial information. Questioned Costs: None. Recommendation: Management should develop a review process to ensure that the financial information is recorded appropriately in accordance with generally accepted accounting principles, is properly reconciled and recorded at year-end in a timely manner, and audits are completed in a timely manner in accordance with 2 CFR Section 200.512. Views of Responsible Officials: Management will work to develop the proper procedures to ensure that balances are appropriately reconciled at year-end and recorded in accordance with generally accepted accounting principles, so the reporting requirements in 2 CFR Section 200.512 are met.

Finding Reference 2022-002 Federal Agency: US Department of the Treasury Pass-through the Puerto Rico Department of the Treasury US Department of Homeland Security Pass-through the Puerto Rico Central Office for Recovery, Reconstruction and Resiliency (COR3) Federal Program: All Federal Programs Compliance Requirement: Reporting Type of Finding: Significant Deficiency (SD) and Instance of Noncompliance (NC) No similar finding was noted during prior year audit. Statement of Condition The Data Collection Form and the Reporting Package for the year ended June 30, 2022 was not timely submitted to the federal government. The Data Collection Form and the Reporting Package must be submitted by the auditee within the earlier of 30-day after the receipt of the auditors? reports or nine (9) months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. No extension from the cognizant or oversight agency was noted. Criteria The Uniform Guidance 2 CFR Section 200.512(a) requires the audit to be completed and the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (?FAC?) nine months after the end of the audit period. Cause of Condition The Center has not been able to provide the necessary information for the preparation of the single audit report on a timely basis in order to complete its reporting requirement for the fiscal year ended on June 30, 2022. Effect of Condition The Center is not complying with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants awarding process. Questioned Costs None Recommendation The Center should adopt policies and procedures to ensure that the annual audit is performed and submitted in a timely manner. View of Responsible Officials and Planned Corrective Actions The Center agrees with the finding and recommendation will be implemented.

Finding Reference 2022-002 Federal Agency: US Department of the Treasury Pass-through the Puerto Rico Department of the Treasury US Department of Homeland Security Pass-through the Puerto Rico Central Office for Recovery, Reconstruction and Resiliency (COR3) Federal Program: All Federal Programs Compliance Requirement: Reporting Type of Finding: Significant Deficiency (SD) and Instance of Noncompliance (NC) No similar finding was noted during prior year audit. Statement of Condition The Data Collection Form and the Reporting Package for the year ended June 30, 2022 was not timely submitted to the federal government. The Data Collection Form and the Reporting Package must be submitted by the auditee within the earlier of 30-day after the receipt of the auditors? reports or nine (9) months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audit. No extension from the cognizant or oversight agency was noted. Criteria The Uniform Guidance 2 CFR Section 200.512(a) requires the audit to be completed and the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (?FAC?) nine months after the end of the audit period. Cause of Condition The Center has not been able to provide the necessary information for the preparation of the single audit report on a timely basis in order to complete its reporting requirement for the fiscal year ended on June 30, 2022. Effect of Condition The Center is not complying with the reporting requirements set forth by federal regulations, which could affect the future of its federal grants awarding process. Questioned Costs None Recommendation The Center should adopt policies and procedures to ensure that the annual audit is performed and submitted in a timely manner. View of Responsible Officials and Planned Corrective Actions The Center agrees with the finding and recommendation will be implemented.

2022-003 Late Submission Federal Program Information: Funding agency: U.S. Department of Education Title: Elementary and Secondary School Emergency Relief (ESSER) Fund CFDA number: 84.425D and 84.425U Award year and number: 2021 Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from auditors or nine months after the end of the audit period. Condition: The fiscal year audit and reporting package is being submitted after the required due date. Context: We reviewed the audit submission date in comparison to the required due date. Questioned Costs: To be determined by grantor Effect: There is a potential for suspension or cessation of federal and/or state funding. Cause: The ongoing Covid-19 pandemic caused a delay in the audit and as such the required deadline could not be met. Repeat: No Auditor's Recommendations: The District should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and audited within nine months after year end. View of Responsible Officials: The District is working with the auditors to ensure that the 2023 financial statement audit is submitted on time.

2022-003 Late Submission Federal Program Information: Funding agency: U.S. Department of Education Title: Elementary and Secondary School Emergency Relief (ESSER) Fund CFDA number: 84.425D and 84.425U Award year and number: 2021 Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from auditors or nine months after the end of the audit period. Condition: The fiscal year audit and reporting package is being submitted after the required due date. Context: We reviewed the audit submission date in comparison to the required due date. Questioned Costs: To be determined by grantor Effect: There is a potential for suspension or cessation of federal and/or state funding. Cause: The ongoing Covid-19 pandemic caused a delay in the audit and as such the required deadline could not be met. Repeat: No Auditor's Recommendations: The District should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and audited within nine months after year end. View of Responsible Officials: The District is working with the auditors to ensure that the 2023 financial statement audit is submitted on time.

New Kensington Community Development Corporation (?NKCDC?) failed to submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse by the required due date - the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the period. Condition and Context The federal reporting deadline for the Single Audit reporting package was March 31, 2023; however, NKCDC did not submit its Single Audit Reporting Package by that date. Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable?.. must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Cause As a result of the COVID-19 pandemic, financial constraints, and corresponding staffing challenges, the accounting and finance team at NKCDC were unable to complete the required audits on a timely basis. At the same time, the accounting and finance team were faced with other administrative and operational matters requiring immediate attention to help ensure NKCDC remained operational. The financial and staffing constraints resulted in the late submissions of the Single Audit reporting package. Effect or Potential Effect Lateness in reporting could result in a lack of up to date information provided to federal agencies and potential impacts on grant funding. Recommendation We recommend that management implements processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials Management agrees with the finding above. Management will review the existing accounting policies and procedures and implement additional controls to validate timely submission of reports.

New Kensington Community Development Corporation (?NKCDC?) failed to submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse by the required due date - the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the period. Condition and Context The federal reporting deadline for the Single Audit reporting package was March 31, 2023; however, NKCDC did not submit its Single Audit Reporting Package by that date. Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable?.. must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Cause As a result of the COVID-19 pandemic, financial constraints, and corresponding staffing challenges, the accounting and finance team at NKCDC were unable to complete the required audits on a timely basis. At the same time, the accounting and finance team were faced with other administrative and operational matters requiring immediate attention to help ensure NKCDC remained operational. The financial and staffing constraints resulted in the late submissions of the Single Audit reporting package. Effect or Potential Effect Lateness in reporting could result in a lack of up to date information provided to federal agencies and potential impacts on grant funding. Recommendation We recommend that management implements processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials Management agrees with the finding above. Management will review the existing accounting policies and procedures and implement additional controls to validate timely submission of reports.

New Kensington Community Development Corporation (?NKCDC?) failed to submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse by the required due date - the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the period. Condition and Context The federal reporting deadline for the Single Audit reporting package was March 31, 2023; however, NKCDC did not submit its Single Audit Reporting Package by that date. Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable?.. must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Cause As a result of the COVID-19 pandemic, financial constraints, and corresponding staffing challenges, the accounting and finance team at NKCDC were unable to complete the required audits on a timely basis. At the same time, the accounting and finance team were faced with other administrative and operational matters requiring immediate attention to help ensure NKCDC remained operational. The financial and staffing constraints resulted in the late submissions of the Single Audit reporting package. Effect or Potential Effect Lateness in reporting could result in a lack of up to date information provided to federal agencies and potential impacts on grant funding. Recommendation We recommend that management implements processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials Management agrees with the finding above. Management will review the existing accounting policies and procedures and implement additional controls to validate timely submission of reports.

New Kensington Community Development Corporation (?NKCDC?) failed to submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse by the required due date - the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the period. Condition and Context The federal reporting deadline for the Single Audit reporting package was March 31, 2023; however, NKCDC did not submit its Single Audit Reporting Package by that date. Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable?.. must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Cause As a result of the COVID-19 pandemic, financial constraints, and corresponding staffing challenges, the accounting and finance team at NKCDC were unable to complete the required audits on a timely basis. At the same time, the accounting and finance team were faced with other administrative and operational matters requiring immediate attention to help ensure NKCDC remained operational. The financial and staffing constraints resulted in the late submissions of the Single Audit reporting package. Effect or Potential Effect Lateness in reporting could result in a lack of up to date information provided to federal agencies and potential impacts on grant funding. Recommendation We recommend that management implements processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials Management agrees with the finding above. Management will review the existing accounting policies and procedures and implement additional controls to validate timely submission of reports.

New Kensington Community Development Corporation (?NKCDC?) failed to submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse by the required due date - the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the period. Condition and Context The federal reporting deadline for the Single Audit reporting package was March 31, 2023; however, NKCDC did not submit its Single Audit Reporting Package by that date. Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable?.. must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Cause As a result of the COVID-19 pandemic, financial constraints, and corresponding staffing challenges, the accounting and finance team at NKCDC were unable to complete the required audits on a timely basis. At the same time, the accounting and finance team were faced with other administrative and operational matters requiring immediate attention to help ensure NKCDC remained operational. The financial and staffing constraints resulted in the late submissions of the Single Audit reporting package. Effect or Potential Effect Lateness in reporting could result in a lack of up to date information provided to federal agencies and potential impacts on grant funding. Recommendation We recommend that management implements processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials Management agrees with the finding above. Management will review the existing accounting policies and procedures and implement additional controls to validate timely submission of reports.

New Kensington Community Development Corporation (?NKCDC?) failed to submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse by the required due date - the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the period. Condition and Context The federal reporting deadline for the Single Audit reporting package was March 31, 2023; however, NKCDC did not submit its Single Audit Reporting Package by that date. Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable?.. must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Cause As a result of the COVID-19 pandemic, financial constraints, and corresponding staffing challenges, the accounting and finance team at NKCDC were unable to complete the required audits on a timely basis. At the same time, the accounting and finance team were faced with other administrative and operational matters requiring immediate attention to help ensure NKCDC remained operational. The financial and staffing constraints resulted in the late submissions of the Single Audit reporting package. Effect or Potential Effect Lateness in reporting could result in a lack of up to date information provided to federal agencies and potential impacts on grant funding. Recommendation We recommend that management implements processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials Management agrees with the finding above. Management will review the existing accounting policies and procedures and implement additional controls to validate timely submission of reports.

New Kensington Community Development Corporation (?NKCDC?) failed to submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse by the required due date - the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the period. Condition and Context The federal reporting deadline for the Single Audit reporting package was March 31, 2023; however, NKCDC did not submit its Single Audit Reporting Package by that date. Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable?.. must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Cause As a result of the COVID-19 pandemic, financial constraints, and corresponding staffing challenges, the accounting and finance team at NKCDC were unable to complete the required audits on a timely basis. At the same time, the accounting and finance team were faced with other administrative and operational matters requiring immediate attention to help ensure NKCDC remained operational. The financial and staffing constraints resulted in the late submissions of the Single Audit reporting package. Effect or Potential Effect Lateness in reporting could result in a lack of up to date information provided to federal agencies and potential impacts on grant funding. Recommendation We recommend that management implements processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials Management agrees with the finding above. Management will review the existing accounting policies and procedures and implement additional controls to validate timely submission of reports.

Criteria: Per Title 2 CFR 200.512(d), the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditors' report, or nine months after the end of the audit report. Condition: The data collection form for the audit of the year ended June 30, 2021 was due March 31, 2022, but was not submitted until July 21, 2022, or 112 days late. Questioned Costs: None. Context: The data collection form submission must include an attachment of the annual audit report of an independent auditor. As of June 2022, the auditor had not completed the audit in accordance with his agreement with the District. The District fired the auditor and hired a new firm to complete the audit, but the deadline had already passed. Effect: The prior year audit and data collection form were not submitted before the deadline. Cause: The data collection form could not be submitted without the audited financial statements. The firm hired to perform the audit failed to do so. They were fired in June 2022, after the submission deadline. The new firm completed the audit and the data collection form was filed on July 21, 2022. Recommendation: We recommend that all required filings be submitted timely according to the Single Audit Act of 1984 and Title 2, U.S. Code of Federal Regulations Guidelines. Management's Response: A new firm has been engaged to perform the District's audits. This will allow filings to be made before the deadline.

Criteria: Per Title 2 CFR 200.512(d), the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditors' report, or nine months after the end of the audit report. Condition: The data collection form for the audit of the year ended June 30, 2021 was due March 31, 2022, but was not submitted until July 21, 2022, or 112 days late. Questioned Costs: None. Context: The data collection form submission must include an attachment of the annual audit report of an independent auditor. As of June 2022, the auditor had not completed the audit in accordance with his agreement with the District. The District fired the auditor and hired a new firm to complete the audit, but the deadline had already passed. Effect: The prior year audit and data collection form were not submitted before the deadline. Cause: The data collection form could not be submitted without the audited financial statements. The firm hired to perform the audit failed to do so. They were fired in June 2022, after the submission deadline. The new firm completed the audit and the data collection form was filed on July 21, 2022. Recommendation: We recommend that all required filings be submitted timely according to the Single Audit Act of 1984 and Title 2, U.S. Code of Federal Regulations Guidelines. Management's Response: A new firm has been engaged to perform the District's audits. This will allow filings to be made before the deadline.

Criteria: Per Title 2 CFR 200.512(d), the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditors' report, or nine months after the end of the audit report. Condition: The data collection form for the audit of the year ended June 30, 2021 was due March 31, 2022, but was not submitted until July 21, 2022, or 112 days late. Questioned Costs: None. Context: The data collection form submission must include an attachment of the annual audit report of an independent auditor. As of June 2022, the auditor had not completed the audit in accordance with his agreement with the District. The District fired the auditor and hired a new firm to complete the audit, but the deadline had already passed. Effect: The prior year audit and data collection form were not submitted before the deadline. Cause: The data collection form could not be submitted without the audited financial statements. The firm hired to perform the audit failed to do so. They were fired in June 2022, after the submission deadline. The new firm completed the audit and the data collection form was filed on July 21, 2022. Recommendation: We recommend that all required filings be submitted timely according to the Single Audit Act of 1984 and Title 2, U.S. Code of Federal Regulations Guidelines. Management's Response: A new firm has been engaged to perform the District's audits. This will allow filings to be made before the deadline.

2022-002 Audit Submitted Late to Federal Clearinghouse (noncompliance) Condition: The audit and Data Collection Form was not submitted to the Federal Audit Clearinghouse (FAC) by the March 31, 2023 deadline. Criteria: 2 CFR 200.512 requires federal award recipients to complete the Data Collection Form and submit a copy of their audit to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor?s reports or nine months after the end of the audit period. Cause: The organization switched financial officers during the fiscal year which prevented the organization to prepare for their audit in time to meet the federal deadline. Effect: Federal oversight agencies did not receive timely information regarding this recipient. They were not able to conduct their oversight responsibilities in a timely manner. Questioned costs: Not applicable. Auditor?s Recommendation: The organization should consider preparing for and starting the audit process in the late summer or fall in order to have plenty of time to meet the federal deadline. Views of Responsible Officials: To ensure audits get submitted in a timely manner to the Federal Audit Clearinghouse, TLS? current financial officer will start compiling all necessary documentation and schedule an independent audit in late summer or early fall. This will allow TLS to meet the required deadlines.

2022-003 Late Audit Submission Programs: Impact Aid, Covid 19 - Elementary & Secondary School Emergency Relief Federal Assistance #: 84.041, 84.425 Federal Agency: U.S. Department of Education Grantor Number: N/A Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: L. Reporting CONDITION The District did not submit their audit for the fiscal year ending June 30, 2022, timely. The audit was submitted June 16, 2023, which was 77 days past the March 31, 2023 deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.

2022-003 Late Audit Submission Programs: Impact Aid, Covid 19 - Elementary & Secondary School Emergency Relief Federal Assistance #: 84.041, 84.425 Federal Agency: U.S. Department of Education Grantor Number: N/A Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: L. Reporting CONDITION The District did not submit their audit for the fiscal year ending June 30, 2022, timely. The audit was submitted June 16, 2023, which was 77 days past the March 31, 2023 deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.

2022-003 Late Audit Submission Programs: Impact Aid, Covid 19 - Elementary & Secondary School Emergency Relief Federal Assistance #: 84.041, 84.425 Federal Agency: U.S. Department of Education Grantor Number: N/A Questioned Costs: N/A Type of Finding: Noncompliance, material weakness Compliance Requirement: L. Reporting CONDITION The District did not submit their audit for the fiscal year ending June 30, 2022, timely. The audit was submitted June 16, 2023, which was 77 days past the March 31, 2023 deadline. CRITERIA 2 CFR ? 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR ? 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in ? 200.512." CAUSE The District did not have proper procedures in place to ensure that the audit was completed and submitted within the designated timeframe. EFFECT Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the District from qualifying as a low-risk auditee. RECOMMENDATION The District should implement procedures to ensure that all audit documentation is available for audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe.