GBAPP, Inc.Non-Profit

MAJOR GRANT PROGRAMS-MATERIAL WEAKNESS IN INTERNAL CONTROL Grantor: DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Name: Ryan White, Title I-IV, Part A Ryan White Part A, MAI CFDA #: 93.914 Condition: GBAPP, Inc. was unable to prepare financial statements, a schedule of federal awards and a schedule of state financial assistance that complied with Generally Accepted Accounting Principles (GAAP) and governmental professional standards on a timely basis. Significant adjustments, subsequent to year end, were required to conform the financial statements and schedules to professional standards in all material respects. Accordingly, the Federal Data Collection Form and the Connecticut EARS filings were not submitted timely. Questioned Costs: None Criteria: Professional Standards require that GBAPP, Inc. prepare a statement of financial position, statement of activities, statement of cash flows, schedule of federal awards, schedule of state financial assistance and comprehensive notes to the financial statements timely enough to submit them for financial statement and compliance audits to be completed by regulatory deadlines. Cause: These conditions appear to have been contributed to by a change in management personnel, a limited review of financial reporting and closing procedures performed by management and key grant personnel and the accumulation of continuing issues arising from the COVID-19 pandemic. Effect: Management did not have adequate information to report its net assets, changes in net assets and federal and state awards on a timely basis. Recommendation: Management should consider implementing additional policies and procedures relating to financial reporting and the financial statement closing process. Additionally, we recommend that GBAPP supplement its management and accounting personnel with additional personnel that have suitable skills, knowledge and experience in financial, governmental and grants management reporting. Although management did contract with such an individual, it was not early enough in the fiscal year to prevent internal control deficiencies. Management Response: Management has retained a new accounting clerk and a consulting CPA to perform these duties and is in the process of implementing additional policies and procedures.

Grantor: DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Name: Ryan White, Title I-IV, Part A Ryan White Part A, MAI CFDA #: 93.914 Condition: GBAPP, Inc. was unable to prepare financial statements, a schedule of federal awards and a schedule of state financial assistance that complied with Generally Accepted Accounting Principles (GAAP) and governmental professional standards on a timely basis. Significant adjustments, subsequent to year end, were required to conform the financial statements and schedules to professional standards in all material respects. Accordingly, the Federal Data Collection Form and the Connecticut EARS filings were not submitted timely. Questioned Costs: None Criteria: Professional Standards require that GBAPP, Inc. prepare a statement of financial position, statement of activities, statement of cash flows, schedule of federal awards, schedule of state financial assistance and comprehensive notes to the financial statements timely enough to submit them for financial statement and compliance audits to be completed by regulatory deadlines. Cause: These conditions appear to have been contributed to by a change in management personnel, a limited review of financial reporting and closing procedures performed by management and key grant personnel and the COVID-19 pandemic. Effect: Management did not have adequate information to report its net assets, changes in net assets and federal and state awards on a timely basis. Recommendation: Management should consider implementing additional policies and procedures relating to financial reporting and the financial statement closing process. Additionally, we recommend that GBAPP supplement its management and accounting personnel with additional personnel that have suitable skills, knowledge and experience in financial, governmental and grants management reporting. Although management did contract with such an individual, it was not early enough in the fiscal year to prevent internal control deficiencies. Management Response: Management has retained a new accounting clerk and a consulting CPA to perform these duties and is in the process of implementing additional policies and procedures.

Grantor: DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Name: Ryan White, Title I-IV, Part A Ryan White Part A, MAI CFDA #: 93.914 Condition: Monthly expenditure reports submitted for reimbursement were not supported by the general ledger activity. Total reported expenditures exceed total grant expenses recorded in the general ledger. Additionally, certain costs allocated to the program did not appear to be allowable program costs. Questioned Costs: $5,844 Context: The above questioned costs represent 0.60% of total program expenditures. Criteria: As prescribed by the OMB Compliance Supplement, the allowed services and costs must be in accordance with the approved grant contracts and related budgets. Final expenditure reports submitted must agree with the underlying accounting records. Cause: It appears that certain reported expenditures were greater than those recorded in the general ledger. Effect: The unallowable costs could potentially be disallowed by the grantor, who may request that certain funds be returned or that future funding be reduced. Recommendation: Management should consider implementing additional review and reconciliation procedures relating to expense allocations recorded to the general ledger and grant reporting prior to the submission of expenditure reports. Management Response: Management is in the process of developing additional indirect expense allocation and review and reconciliation procedures to ensure allowable grant costs are properly recorded to the general ledger and expenditure reports are adequately supported by the underlying accounting records.

2021-001 MAJOR GRANT PROGRAMS-MATERIAL WEAKNESS IN INTERNAL CONTROL Grantor: DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Name: Ryan White, Title I-IV, Part A Ryan White Part A, MAI Ryan White Part A ? COVID-19 funding CFDA #: 93.914 Condition: GBAPP, Inc. was unable to prepare financial statements and a schedule of federal awards that complied with Generally Accepted Accounting Principles (GAAP) and governmental professional standards on a timely basis. Significant adjustments, subsequent to year end, were required to conform the financial statements and schedules to professional standards in all material respects. Accordingly, the Federal Data Collection Form was not submitted timely. Questioned Costs: None Criteria: Professional Standards require that GBAPP, Inc. prepare a statement of financial position, statement of activities, statement of cash flows, schedule of federal awards, and comprehensive notes to the financial statements timely enough to submit them for financial statement and compliance audits to be completed by regulatory deadlines. Cause: These conditions appear to have been contributed to by a change in management personnel, a limited review of financial reporting and closing procedures performed by management and key grant personnel and the COVID-19 pandemic. Effect: Management did not have adequate information to report its net assets, changes in net assets and federal and state awards on a timely basis. Recommendation: Management should consider implementing additional policies and procedures relating to financial reporting and the financial statement closing process. Additionally, we recommend that GBAPP supplement its management and accounting personnel with additional personnel that have suitable skills, knowledge and experience in financial, governmental and grants management reporting. Although management did contract with such an individual, it was not early enough in the fiscal year to prevent internal control deficiencies. Management Response: Management has retained a new accounting clerk and a consulting CPA to perform these duties and is in the process of implementing additional policies and procedures.

2021-002 ACTIVITIES ALLOWED AND UNALLOWED, ALLOWABALE COSTS AND CASH MANAGEMENT - COMPLIANCE Grantor: DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Name: Ryan White, Title I-IV, Part A Ryan White Part A, MAI CFDA #: 93.914 Condition: Monthly expenditure reports submitted for reimbursement were not supported by the general ledger activity. Total reported expenditures exceed total grant expenses recorded in the general ledger. Additionally, certain costs allocated to the program did not appear to be allowable program costs. Questioned Costs: $31,663 Context: The above questioned costs represent 2.95% of total program expenditures. Criteria: As prescribed by the OMB Compliance Supplement, the allowed services and costs must be in accordance with the approved grant contracts and related budgets. Final expenditure reports submitted must agree with the underlying accounting records. Cause: It appears that certain reported expenditures were based on the program?s budget instead of actual expenses incurred. Certain costs incurred for other programs were incorrectly allocated to the Ryan White Program in the general ledger. Indirect expenses were not recorded to the general ledger in accordance with GBAPP?s cost allocation plan. Effect: The unallowable costs could potentially be disallowed by the grantor, who may request that certain funds be returned or that future funding be reduced. Recommendation: Management should consider implementing additional review and reconciliation procedures relating to expense allocations recorded to the general ledger and grant reporting prior to the submission of expenditure reports. Indirect expenses should be allocated to the general ledger in accordance with the organization?s cost allocation plan on timely basis. Management Response: Management is in the process of developing additional indirect expense allocation and review and reconciliation procedures to ensure allowable grant costs are properly recorded to the general ledger and expenditure reports are adequately supported by the underlying accounting records.

2021-003 SUBRECIPIENT MONITORING - COMPLIANCE Grantor: DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Name: Ryan White, Title I-IV, Part A Ryan White Part A, MAI Ryan White Part A ? COVID-19 funding CFDA #: 93.914 Condition: Although monthly reporting was obtained and reviewed, subrecipient monitoring policies and procedures were not properly documented and certain monitoring procedures were not performed. Questioned Costs: None Criteria: Professional Standards require that GBAPP, Inc. evaluate each subrecipient?s risk of noncompliance for purposes of determining the appropriate monitoring procedures. Additionally, the organization is required to monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes and complies with the terms and conditions of the subaward, including reviewing required financial and programmatic reports, verifying that subrecipients expected to be audited, as required by the Uniform Guidance, met this requirement and ensuring that the subrecipient takes timely and appropriate action on all deficiencies detected through audits, on-site reviews and other means. Cause: Grant management was unaware of certain subrecipient monitoring compliance requirements of the program. Effect: Certain noncompliance by subrecipients may have occurred. Recommendation: Management should consider implementing additional policies and procedures relating to documentation and performance of subrecipient monitoring procedures as required by the Uniform Guidance and by the terms and conditions of the grant award. Management Response: Management is in the process of developing such policies and procedures to properly monitor subrecipients of grant awards received by the organization.

2020-001 MAJOR GRANT PROGRAMS-SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL Grantor: DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Name: Ryan White, Title I-IV, Part A Ryan White Part A, MAI CFDA #: 93.914 Condition: GBAPP, Inc. was unable to prepare financial statements and a schedule of federal awards that complied with Generally Accepted Accounting Principles (GAAP) and governmental professional standards on a timely basis. Significant adjustments, subsequent to year end, were required to conform the financial statements and schedule to professional standards in all material respects. Accordingly, the Federal Data Collection Form filing was not submitted timely. Questioned Costs: None Criteria: Professional Standards require that GBAPP, Inc. prepare a statement of financial position, statement of activities, statement of cash flows, schedule of federal awards and comprehensive notes to the financial statements timely enough to submit them for financial statement and compliance audits to be completed by regulatory deadlines. Cause: These conditions appear to have been contributed to by a change in management personnel, a limited review of financial reporting and closing procedures performed by management and key grant personnel and the COVID-19 pandemic. Effect: Management did not have adequate information to report its net assets, changes in net assets and federal awards on a timely basis. Recommendation: Management should consider implementing additional policies and procedures relating to financial reporting and the financial statement closing process. Additionally, we recommend that GBAPP supplement its management and accounting personnel with additional personnel that have suitable skills, knowledge and experience in financial, governmental and grants management reporting. Although management did contract with such an individual, it was not early enough in the fiscal year to prevent internal control deficiencies. Management Response: Management has retained a new accounting clerk and a consulting CPA to perform these duties and is in the process of implementing additional policies and procedures.

2020-002 SUBRECIPIENT MONITORING - COMPLIANCE Grantor: DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Name: Ryan White, Title I-IV, Part A Ryan White Part A, MAI CFDA #: 93.914 Condition: Although monthly reporting was obtained and reviewed, subrecipient monitoring policies and procedures were not properly documented and certain monitoring procedures were not performed. Questioned Costs: None Criteria: Professional Standards require that GBAPP, Inc. evaluate each subrecipient?s risk of noncompliance for purposes of determining the appropriate monitoring procedures. Additionally, the organization is required to monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes and complies with the terms and conditions of the subaward, including reviewing required financial and programmatic reports, verifying that subrecipients expected to be audited, as required by the Uniform Guidance, met this requirement and ensuring that the subrecipient takes timely and appropriate action on all deficiencies detected through audits, on-site reviews and other means. Cause: Grant management was unaware of certain subrecipient monitoring compliance requirements of the program. Effect: Certain noncompliance by subrecipients may have occurred. Recommendation: Management should consider implementing additional policies and procedures relating to documentation and performance of subrecipient monitoring procedures as required by the Uniform Guidance and by the terms and conditions of the grant award. Management Response: Management is in the process of developing such policies and procures to properly monitor subrecipients of grant awards received by the organization.

Condition: GBAPP, Inc. was unable to prepare financial statements, a schedule of federal awards and a schedule of state financial assistance that complied with Generally Accepted Accounting Principles (GAAP) and governmental professional standards on a timely basis. Significant adjustments, subsequent to year end, were required to conform the financial statements and schedules to professional standards in all material respects. Accordingly, the Federal Data Collection Form and the Connecticut EARS filings were not submitted timely. Questioned Costs: None Criteria:Professional Standards require that GBAPP, Inc. prepare a statement of financial position, statement of activities, statement of cash flows, schedule of federal awards, schedule of state financial assistance and comprehensive notes to the financial statements timely enough to submit them for financial statement and compliance audits to be completed by regulatory deadlines. Cause: These conditions appear to have been contributed to by a lack of communication with an external consultant and limited review procedures performed by management and key grant personnel. Effect: Management did not have adequate information to report its net assets, changes in net assets and federal and state awards on a timely basis. Recommendation: Management should consider implementing additional policies and procedures relating to financial reporting and the financial statement closing process. Additionally, we recommend that GBAPP supplement its management and accounting personnel with additional personnel that have suitable skills, knowledge and experience in financial, governmental and grants management reporting. Although management did contract with such an individual, it was not early enough in the fiscal year to prevent internal control deficiencies. Management Response: Management has retained a new accounting clerk and a consulting CPA to perform these duties and is in the process of implementing additional policies and procedures.

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