Shalom House, Inc. and Subsidiaries

Finding 2024-001 Information on the Federal Program: Federal Agency: U.S. Department of Housing and Urban Development (HUD) Program Name: Continnuum of Care Program Assistance Listing: 14.267 Federal Award Identification Number: MH1-23-111B Federal Award Year: 2023 Specific Requirement: In accordance with the Uniform Guidance §200.512, Report Submission, the audit must be completed, the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s reports, or nine months after the end of the audit period. Condition Found: The Organization did not submit the 2023 data collection form prior to the 9 month extended deadline of March 31, 2024. Context: The late report submission is a condition identified per examination of the audit report date, in comparison to the required submission deadline date of the data collection form and reporting package. Questioned Costs: N/A Cause and Effect: Uniform Guidance audit was not completed by the reporting deadline due to issues with staffing. This presented delays in scheduling and other data gathering that likely could have been avoided or reduced had there been adequate staffing. Identification as a Repeat Finding, if Applicable: N/A Recommendation: We recommend that management organize an internal control structure that can facilitate timely preparation of the data collection form and the related reconciliations for the completion of the audit and submission of the data collection form before the submission deadline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and the recommendation. See Corrective Action Plan attached.

Management confirms the facts presented above as fully reflecting their declarations during the audit process. Management will implement a process of timely submission of the data collection form and consolidated financial statements to be in compliance with both Uniform Guidance and MAAP. Responsible party: Doug Davidson, Finance Director; (207) 874-1080 Anticipated completion date: Effective March 31, 2025

Criteria: Management is responsible for identifying all federal awards expended and for the preparation of the schedule of expenditures of federal awards (SEFA) in conformity with the Uniform Guidance. Condition(s) and Context: Management did not provide a complete and accurate schedule of expenditures of federal awards. Management initially did not identify sub-recipient funds. Management also listed several incorrect federal expenditures, pass-through identifying numbers, program names, program Catalog of Federal Domestic Assistance numbers, and contract numbers. After suggested revisions, management was able to provide the correct information needed for the SEFA. Cause: Shalom House, Inc. does not have the personnel trained to complete year-end financial reporting. Potential effect: Incorrect reporting to federal agencies. Questioned Costs: None. Recommendation: We recommend client obtain necessary training to provide and complete the grant compliance reporting requirements. Views of responsible officials: Management agrees with the finding. See attached for Planned Corrective Action Plan.

Corrective Action Plan Monett Wilson Finance Director Shalom House, Inc. 106 Gilman Street Portland, Me. (207) 874-1080 Finding Number 2019-004 Responsible Parties Monett Wilson Estimated Completion Date 6/30/2020 Management confirms the facts presented above as fully reflecting their declarations during the audit process. Management will identify all information needed for SEFA prior the end of the fiscal year. Management will implement a policy for tracking grants received.