Families in Transition, Inc. and SubsidiariesNon-Profit

Finding Number: 2023-001 Programs Affected: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: The Organization is responsible for designing, implementing and maintaining effective internal controls over compliance that provide reasonable assurance that the internal controls will prevent misstatements or detect and correct misstatements on a timely basis, intentional or unintentional, from occurring. Condition Found: While comparing and reconciling the schedule of expenditures of federal awards (SEFA) to the consolidated financial statements, we noted one revenue entry was included in the SEFA which related to expenses incurred during the year ended December 31, 2022. Assistance Listing 21.027 was understated by approximately $179,000 for the year ended December 31, 2022 and Assistance Listing 21.027 was overstated by approximately $179,000 for the year ended December 31, 2023. The amount was recorded correct for the program year, but not the agency fiscal year. Cause and Effect: The staff member that created the revenue entry should have split it between December 2022 and January 2023. The error was overlooked by the entry reviewer. The condition resulted in management not identifying all expenditures to be included in the SEFA in 2022, which could have resulted in incomplete information reported to users of the SEFA. Questioned Costs: N/A Identification of Repeat Findings:N/A Recommendation:We recommend the Organization implement a tracking system to identify and report all expenditures of federal awards on the SEFA in compliance with the requirements of the Uniform Guidance. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. See attached Corrective Action Plan.