PATHWAYS TO HOUSING - DC

Finding No. 2021-001 Program: All Repeat Finding: No Significant Deficiency Over Financial Reporting Condition: The fiscal year was not closed in a timely manner for 2021. The fiscal year ended June 30, 2021 audit was not started until January 2023. Criteria: In accordance with Uniform Guidance, Pathways DC must maintain an adequate system of internal controls over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, ? 200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or changes in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause: Pathways DC did not have adequate processes in place to ensure accounts are closed and reconciled in a timely manner. Effect: The delay in completing account analysis for the financial statement accounts could allow for misstatements, errors, and irregularities to go undetected. Also, accurate and timely financial information may not have been available to make management decisions. Questioned Costs: None. Recommendation: We recommend Pathways DC develop formal written procedures for the monthly and year-end financial reporting procedures and checklists to assist in the closure and preparation of its financial statements. These policies should ensure reconciliations and other account analyses are completed and reviewed by appropriate supervisory personnel in a timely manner. Auditee Response and Corrective Action Plan: Refer to management?s corrective action plans. Auditor?s Conclusion: Finding remains as stated.

Finding No. 2021-002 Program: All Significant Deficiency and Noncompliance over Reporting Repeat Finding: Yes Condition: Pathways DC was not able to complete the preparation of the financial statements in accordance with the federal government?s Office of Management and Budget?s (OMB) time constraints. OMB requires the submission of a single audit reporting package through the Federal Audit Clearinghouse (FAC). The reporting package, which includes the financial statement audit and single audit, must be filed no later than nine months after the fiscal year end. The date would be March 31, 2022. Criteria: In accordance with 2 CFR ? 200.512, the audit must be completed, and the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Cause: Control processes over financial reporting did not function as designed resulting in the late FAC submission. Effect: The FAC submission was filed late. Recommendation: We recommend Pathways DC review the existing financial reporting policies and procedures to ensure sufficient information is made available in a timely manner to allow for filing required reports with OMB before the due date. Auditee Response and Corrective Action Plan: Refer to management?s corrective action plans. Auditor?s Conclusion: Finding remains as stated.

Finding # 2019-001 Condition: Personal information, such as social security numbers, are not always protected by the auditee. Criteria: Internal controls should be in place to ensure all personal information including social security numbers are protected and not available to the general public. Cause: Procedures are not in place for the protection of personal information as an electronic document containing social security numbers was transferred by e-mail to an external recipient without password protection. Effect: The lack of controls over personal information could result in sensitive personal information being stolen or otherwise available to the general public. Recommendation: Additional training should be given to all employees with respect to keeping personal information confidential. Views of Responsible Officials and Planned Corrective Actions: During FY2019, PTHDC maintained a policy that all sensitive personal information must be safeguarded. Unfortunately, there was an instance in which sensitive information was shared by email with a trusted source but was not safeguarded with password protection. and Planned Corrective Actions

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