Pacific House, Inc.Non-Profit

Finding No. 2025-001: Annual Audit Submission – Significant Deficiency Federal Program Name: All Pass-through Entity: All Federal Assistance Listing Number: All Type of Finding Significant Deficiency in Internal Control over Compliance and Other Matters Criteria As per Title 2 U.S. Code of Federal Regulations Part 200, Section 200.512 – Report Submission, the audit must be completed and the data collection form and reporting package 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 period. Condition The Data Collection Form (SF-SAC) was not submitted to the Federal Audit Clearinghouse (FAC) for the past two fiscal years. Questioned Costs None. Context Although the federal single audits were completed, the audit packages were not subsequently filed with the FAC. Effect Failure to submit the federal reporting package by the required deadline results in Pacific House, Inc. and Subsidiary being classified as a high-risk auditee in accordance with federal regulations. Cause Management and the prior auditor were unaware of the requirement to submit the audit package to the FAC. Repeat Finding No Recommendation We recommend that management implement procedures to ensure timely submission of all future Single Audit reporting packages to the Federal Audit Clearinghouse. We also recommend that the required submissions for the prior two fiscal years be completed as soon as possible. Management’s Response/View of Responsible Officials Management agrees with this finding, see the Corrective Action Plan.

Finding No. 2025-002: Activities Allowed or Unallowed and Allowable Costs/Cost Principles – Significant Deficiency Federal Program Name: Continuum of Care Federal Program Title: Direct - PSH Supportive Services Pass-through Entities: Housing Collective Federal Assistance Listing Number: 14.267 Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Pass-through Entity: City of Stamford Federal Assistance Listing Number: 21.027 Type of Finding Significant Deficiency in Internal Control over Compliance and Other Matters Criteria Title 2 U.S. Code of Federal Regulations Part 200 Subpart E Cost Principles includes the requirement that charges to federal awards for salaries and wages be based on records that accurately reflect the work performed. These records must support the distribution of the employee’s salary or wages among specific activities or cost objectives and be signed by both the employee and supervisor. Condition The Organization was unable to produce records supporting the allocation of work performed and the distribution of wages to specific grant awards. Questioned Costs None. Context While timesheets and payroll registers were available, they did not document how hours were allocated across specific federal awards, and no personnel activity reports were provided to substantiate the allocation of wages to each award. Effect The basis for allocating costs to federal awards is unsupported by labor distribution reports or personnel activity reports that document the wages charged to each grant program. Cause The Organization’s charges to federal awards for salaries and wages are not supported by a system of internal control which provides reasonable assurance that the charges to federal awards are accurate, allowable, and properly allocated, and that reasonably reflect the total activity for which the employee is compensated. Repeat Finding No Recommendation We recommend that the Organization develop, implement and maintain a system of internal controls to support the proper tracking and allocation of wages to federal awards. Management’s Response/View of Responsible Officials Management agrees with this finding, see the Corrective Action Plan.