SANTA MARIA COMMUNITY SERVICES, INC.Non-Profit

Noncompliance with programmatic reporting Criteria: Management is responsible for submitting complete and accurate programmatic reports timely and ensuring the Organization adheres to programmatic enrollment requirements. Condition: During the audit, four of the programmatic reports tested were not submitted by the required 10-day deadline. Additionally, one of the reports indicate the Organization did not meet the minimum enrollment requirements for the grant year ended June 30, 2024. Effect of Condition: The Organization’s programmatic reports were not submitted timely and did not meet minimum enrollment requirements. Cause of Condition: Significant turnover in the program’s director and supervisory roles during the year caused late programmatic reports to be submitted. This turnover also contributed to lower enrollments for the program due to lack of engagement. Recommendation: Santa Maria Community Services, Inc. and Subsidiary should implement the necessary internal controls and oversight to ensure programmatic reporting requirements are adhered to in the event of personnel turnover. Management’s Response: See corrective action plan on page 28.

Significant deficiency in internal control over programmatic reporting Criteria: Management is responsible for the design, implementation and maintenance of internal control relevant to the compliance with programmatic reporting requirements of grants. Internal controls over programmatic reporting should ensure all reports are completed accurately, submitted timely and the Organization adheres to enrollment requirements. Condition: Internal controls over programmatic reporting did not function as designed by management. Effect of Condition: Four of the programmatic reports tested were reviewed by the program director, however, were not submitted by the 10-day deadline and one report indicated the minimum enrollment requirements were not met. Cause of Condition: Internal controls over programmatic reporting did not function as designed by management due to significant turnover in the program’s director and supervisory roles during the year. Recommendation: Santa Maria Community Services, Inc. and Subsidiary should implement the necessary internal controls and oversight to ensure programmatic reporting requirements are adhered to in the event of personnel turnover. Management’s Response: See corrective action plan on page 28.

2020-001 WIOA Cluster ? WIA/WIOA Youth Activities (WIOA), CFDA 17.259 Criteria: Controls over reporting. WIOA has general performance progress reporting requirements. Internal controls should ensure progress reports are prepared, reviewed, submitted timely and appropriate documentation is properly retained to substantiate. Condition: Santa Maria Community Services, Inc. and Subsidiary?s process for retaining progress reports and supporting documentation did not function as designed. CSH noted three instances (in a sample of three) in which the Organization was not able to provide the progress reports, when they were submitted or any supporting documentation. CSH was able to communicate with the funder to obtain the documentation previously submitted by the Organization to substantiate compliance with the reporting requirements during 2020. Effect of Condition: The Organization is not able to provide documentation to substantiate compliance with progress reporting requirements. Cause of Condition: Santa Maria Community Services, Inc. and Subsidiary did not have a formal internal control process over reporting to ensure progress report documentation and proof of submission are appropriately retained. Previously, the Organization retained documentation informally via email. Employee turnover during the year prevented access to this documentation. Recommendation: Santa Maria Community Services, Inc. and Subsidiary should implement formal internal controls over the reporting requirements to ensure progress reports, supporting documentation and proof of submission are appropriately documented and retained. Management?s Response: See corrective action plan on page 26.