CENTER FOR SAFETY & CHANGE, INC.

Finding: 2021-001 and prior year finding 2020-001 Financial Statement Close Process (Significant Deficiency) Condition The general ledger activity for statement of financial position as well as statement of activities accounts were not routinely analyzed and reconciled. Accounting tasks such as monthly reconciliations, cross-checks, and reviews play a key role in ensuring the accuracy of accounting data and financial information that comprise interim and year-end financial statements. This resulted in a delay of completion of the year end process and audit preparation. Recommendation The prior auditor recommended that all significant general ledger accounts be analyzed and reconciled each month and then reviewed by someone other than the preparer. Current status Due to the conversion to a new accounting firm in early 2021 and the delay of the 2020 audit until November 2022, the agency was unable to finalize and complete the 2021 books and records on a timely basis. As a result, the 2021 audit was completed in September 2022. During 2022 the books and records are being timely reviewed and reconciled.

Finding: 2020-001 and Prior year finding: 2020-002 - Untimely Submission of Data Collection Form (Significant Deficiency and Compliance Finding) Federal Award Identification # and year All Federal Awards identified in the SEFA for the Year Ended December 31, 2021 & 2022 Criteria: Per 2 CFR 200.512 Report Submission (a) (1) 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 auditor's report, or nine months after the end of the audit period If the due date falls on a Saturday, Sunday, or federal holiday, the reporting package is due on the next business day. Condition: Due to the delay of the 2020 audit, the Organization's Data Collection Form ("DCF") was not filed timely for the year ended December 31, 2020 nor December 31, 2021. Questioned costs: None noted. Recommendation: We recommend that the Organization monitor compliance by following their established controls and processes to prepare a complete and accurate SEFA in order to complete the timely filing of the DCF and the reporting package by its due date. Current status- The agency is working on completing a timely December 31, 2022 audit so the DCF filing for that year can be timely completed.

Finding: 2020-002 ? Untimely Submission of Data Collection Form (Significant Deficiency and Compliance Finding) Agency: U.S. Department of Housing and Urban Development; U.S Department of Justice; U.S. Department of Homeland Security; U.S. Department of Health and Human Services; ALN # and Title: ALN # 14.218 Community Development Block Grants/Entitlement Grants; ALN # 14.267 Continuum of Care Program; ALN # 16.017 Sexual Assault Services Formula Program; ALN #16.021 Justice Systems Response to Families; ALN # 16.524 Legal Assistance for Victims; ALN # 16.588 Violence Against Women Formula Grants; ALN # 16.575 Crime Victim Assistance; ALN # 16.726 / 16.543 Juvenile Mentoring Program/Missing Children?s Assistance; ALN # 16.320 Services for Trafficking Victims; ALN # 97.024 Emergency Food and Shelter National Board Program; ALN # 93.994 Maternal and Child Health Services Block Grant to the States; ALN # 93.671 Family Violence Prevention and Services/Domestic Violence Shelter and Supportive Services Federal Award Identification # and Year: All Federal Awards identified in the SEFA for the Year Ended December 31, 2020 Criteria: Per 2 CFR 200.512 Report Submission. (a) (1) 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 auditor's report, or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or federal holiday, the reporting package is due on the next business day. Condition: During the process of performing our audit, we noted that the Organization?s Data Collection Form ("DCF") was not filed timely for the year ended December 31, 2020. The Organization's established controls for financial reporting, including preparation of a complete and accurate schedule of expenditures of federal awards (?SEFA?) and filing of the DCF were not adhered to, resulting in the late completion of their financial audit and the untimely filing of the DCF. Questioned costs: None noted Effect: Per CFR 200.512, the auditor must report the following as an audit finding in a schedule of findings and questioned costs. The Organization is not in compliance with the Data Collection Form reporting deadline. Cause: Lack of submission was due to the inability of the Organization's staff to provide accurate account reconciliations and supporting documentation including preparation of a complete and accurate SEFA on a timely basis to complete the audit. Recommendation: We recommend that the Organization monitor compliance by following their established controls and processes to prepare a complete and accurate schedule of expenditures of federal awards in order to complete the timely filing of the DCF and the reporting package by its due date. Management's Corrective Action Plan: Management has indicated that they have put certain procedures in place as detailed in the Corrective Action Plan located in Appendix A.