YWCA West Central Michigan

#2025-001 – Major Federal Award Finding – Period of Performance Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance This is a repeat of prior year finding #2024-004. Criteria/Condition: Federal regulations 2 CFR 200.1 provide that a non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance. Questioned Costs: $1,687 Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $21,000 was selected from a population of approximately $359,000 of non-payroll direct expenditures. An amount of $1,293 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2024 and was inappropriately charged to the grant during 2025. Two additional invoices had service dates from both the years ending September 30, 2025 and September 30, 2024, and were inappropriately charged in their entirety to the grant during 2025. The portion relating to the year ending September 30, 2024 totaled approximately $394 from these invoices. Cause/Context: Controls were put in place to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. One expenditure out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant was for services provided in the prior performance period and was initially billed to the grant during 2025. Two additional expenditures tested were for contracted monthly services that covered multiple performance periods but were billed in its entirety to the Crime Victim Assistance grant in 2025. Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year. Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests. Views of Responsible Officials and Planned Corrective Actions: The YWCA has implemented (January 2025) the following changes in its accounting procedures: • The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice. • The CFO will review the month, and year noted by the Staff Accountant prior to entry into accounts payable.

#2025-002 – Major Federal Award Finding – Allocation of Costs Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance This is a repeat of elements of prior year finding #2024-005. Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefited projects on a reasonable and documented basis. Questioned Costs: $ 670 Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $21,000 was selected from a population of approximately $359,000 of non-payroll direct expenditures. Certain costs charged to the major program from two invoices did not have a properly supported methodology for the allocation percentages that were utilized. The portion of these invoices charged to the Crime Victim Assistance program totaled $670. Cause/Context: For 2 of the 40 non-payroll expenditures selected for testing, costs were allocated to the major program based on available grant funding allocation percentages, rather than proportional to the benefit provided. Controls were not properly in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program. Recommendation: We recommend management establish procedures and controls to allocate all costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation. Documentation of the allocation methodology, review and approval should be maintained. Views of Responsible Officials and Planned Corrective Actions: Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO. The Organization implemented this process during the year ended September 30, 2025 but discovered that corrections were not made to the entire process of allocations. This process has been improved subsequent to September 30, 2025.

#2025-003 – Major Federal Award Finding – Reporting Nature of Finding: Compliance Finding Reporting and Significant Deficiency in Internal Controls over Compliance Criteria/Condition: Federal regulations 2 CFR 200.328 - 200.329 provide that required reporting under the federal program must be completed timely and accurately. The federal award agreement includes specific report filing due dates. We noted during testing of 12 different required reports, including both financial and performance reports, that 2 of these reports tested were not filed in a timely manner. Cause/Context: Controls were not in place to ensure timely reporting. Two performance reports tested were submitted one day late. Effect: A lack of controls could result in late or missed reporting. Recommendation: We recommend the Organization establish procedures and controls to ensure financial and performance reports are filed timely. Views of Responsible Officials and Planned Corrective Actions: The Organization’s program leadership is playing a more active role in reporting and compliance and is actively involving directors of programs in the process of reporting.

#2024-003 – Material Weakness: Independent Review and Approval This is a repeat of prior year finding #2023-004. Criteria/Condition: Independent reviews and approvals are not performed for all significant accounting activities. A procedure should be in place for independent reviews and approvals of significant accounting activities. For all activities, no one individual should have access that allows initiating, recording, authorizing, and reconciling a transaction. Cause/Context: The following transactions are performed without independent review and approval: • Journal entries are posted without review or approval documented. • Formal review of payroll registers is not documented. • Invoices are not regularly reviewed and approved by appropriate department directors. Two invoices out of forty tested for non-payroll expenditures for the Crime Victim Assistance Program were paid without department approvals, one relating to November 2023 and one relating to the period of July through September 2024. • One invoice out of forty nonpayroll expenditures was entered into the general ledger with no independent review of the entry by the Director of Finance. • Performance reports are submitted without proper documented review. We noted during testing of ten different required performance reports for the Crime Victim Assistance program that the performance reports tested did not contain documentation of review. • The preparer of the financial status report is not reviewing that expenses presented for reimbursement have already been paid or ensuring that expenses are paid shortly after grant funds are received in order to properly monitor cash management. Effect: Unauthorized, erroneous, or inappropriate transactions could occur and go unnoticed. Recommendation: The Organization should establish review procedures such that all transactions and reports have proper documented approval. In addition, the Organization should establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement of federal awards. Views of Responsible Officials and Planned Corrective Actions: The YWCA will implement the following changes in its accounting procedures: 1. Journal entries will be drafted by finance staff and reviewed by the CFO prior to being posted to the general ledger. CFO will post journal entry transactions in the accounting system after documentation is reviewed. 2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software. 3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO or Director of Grants/Compliance prior to entry into the accounts payable system. 4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO. 5. Matching amounts for grants will be tracked and documented with supporting documentation saved in the appropriate folder within the Finance SharePoint folder.

#2024-004 – Major Federal Award Finding – Period of Performance Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance This is a repeat of prior year finding #2023-010. Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance. Questioned Costs: $8,324 Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $35,000 was selected from a population of approximately $577,000 of non-payroll expenditures. An amount of $503 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2025 and was inappropriately charged to the grant during 2024. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Crime Victim Assistance program. Cause/Context: Controls were put in place during the year ending September 30, 2024 to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. Two expenditures out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant were for a contracted annual service that covered multiple performance periods but was billed in its entirety to the current fiscal year. One of these contracted annual services had the correct annual cost allocated to the grant during the year ended September 30, 2024 and did not have questioned costs included above. The other contracted annual service invoice was included in the questioned costs above. One other expenditure out of forty non-payroll related expenditures tested was for services provided in the prior performance period and was initially billed to the grant during 2024. Prior to September 30, 2024, this expenditure was removed from a subsequent grant bill after the auditor discovered the error during interim procedures. This expenditure was not included above in questioned costs as it was removed from grant expenditures during 2024. Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year. Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests. Views of Responsible Officials and Planned Corrective Actions: The YWCA will implement the following changes in its accounting procedures. 1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice. 2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.

#2024-005 – Major Federal Award Finding – Allocation of Costs Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefitted projects on a reasonable and documented basis. Questioned Costs: Not able to be determined. Identification of How Questioned Costs Were Computed: Of the non-payroll major program expenditures selected for testing, certain costs charged to the major program did not have proper support for the allocation percentages that were utilized, or they were missing documented approval for the allocation percentages. Some of the allocation percentages utilized were not consistent throughout the year. These matters are not isolated or contained to any particular type of expenditure. There was no meaningful methodology identified to quantify or extend the errors to the population. Cause/Context: Controls were not in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. For 11 of the 40 non-payroll expenditures selected for testing, allocation percentages were not properly supported or were missing documented approval. Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program. Recommendation: We recommend management establish procedures and controls to allocate costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation and be reviewed. Documentation of the allocation methodology, review and approval should be maintained. Views of Responsible Officials and Planned Corrective Actions Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO.

#2023-004 – Material Weakness: Independent Review and Approval Condition and Criteria: Independent reviews and approvals are not performed for all significant accounting activities. A procedure should be in place for independent reviews and approvals of significant accounting activities. For all activities, no one individual should have access that allows initiating, recording, authorizing, and reconciling a transaction. Cause/Context: The following transactions are performed without independent review and approval: • Journal entries are posted without a review or approval process. • Formal review of payroll registers is not documented. • Invoices are not regularly reviewed and approved by appropriate department directors. Invoices are also entered into the general ledger with no independent review of the entry. • Percentages used to allocate expenses across grants are not reviewed on at least an annual basis. • Matching amounts required for grants are not independently tracked and reviewed to ensure compliance. Effect: Unauthorized, erroneous, or inappropriate transactions could occur and go unnoticed. Recommendation: The Organization should establish review procedures such that all transactions have proper approval.Views of Responsible Officials and Planned Corrective Actions: The YWCA will implement the following changes in its accounting procedures: 1. Journal entries will be drafted by the Staff Accountant and reviewed by the CFO prior to being posted to the general ledger. The end-of-month-journal-entry spreadsheets will have spaces added for the CFO to indicate approval and date approved. 2. Payroll registers will be reviewed by the CFO each payroll. The end-of-month payroll entry (which encompasses all the payroll entries for the month) will be reviewed by the CFO prior to being uploaded to the MIP accounting software. 3. All invoices will be approved by the appropriate program director and account distribution will be reviewed by the CFO prior to entry into the accounts payable system. 4. Percentages used to allocate expenses across grants will be reviewed and updated annually at the beginning of the fiscal year. The allocation will be approved by the CEO. 5. Matching amounts for grants will be tracked and documented with supporting documentation by the Director of Finance and saved in the appropriate folder within the Finance SharePoint folder

U.S. Department of Housing and Urban Development Continuum of Care – Assistance #14.267 #2023-005 – Major Federal Award Finding – Special Tests and Provisions Nature of Finding: Compliance Finding Special Tests and Provisions and Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-005. Criteria/Condition: Per 24 CFR 578.49, rent paid must be reasonable in relation to rents being charged in the area for comparable space. The Organization did not have controls in place to verify that rent paid is reasonable in relation to rents being charged in the area for comparable space. Cause/Context: Controls were not in place to ensure rent reasonableness. For the rent payments tested, we noted that management's conclusions for rent reasonableness was not documented. Effect: A lack of controls could result in questioned costs and an inappropriate amount of rent payments being charged to the federal program. Recommendation: We recommend management establish procedures and controls to require that evidence of review for rent reasonableness be maintained, and that the related conclusions are documented. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: For each client in the HEAL program, where the Organization pays rent for the client, a rent reasonableness form will be completed by the HEAL program staff and approved by the HEAL Program Director and Senior Director. The form will be saved in the client’s file within the Bizstream client management program. The rent reasonableness form will also be submitted to the finance department prior to, or along with, a request for the client’s first rent payment.

U.S. Department of Housing and Urban Development Continuum of Care – Assistance #14.267 #2023-006 – Major Federal Award Finding - Period of Performance Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance. Questioned Costs: $4,035 Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $49,000 was selected from a population of approximately $764,000 of non-payroll expenditures. An amount of $263 from an invoice that was selected for testing of non-payroll expenditures charged to the Continuum of Care program was related to the year ending September 30, 2024 and was inappropriately charged to the grant during 2023. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Continuum of Care program. Cause/Context: There are not proper controls in place to review invoices and assign them to the appropriate grant period. One expenditure out of forty non-payroll related expenditures tested for the Continuum of Care grant was for a contracted monthly service that covered multiple performance periods but was billed in its entirety to the current fiscal year. Effect: An overstatement of expenditures for the Continuum of Care grant was reported in the current year. Recommendation: We recommend procedures are established to review for proper grant period when recording transactions and creating monthly reimbursement requests. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: 1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice. 2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.

U.S. Department of Housing and Urban Development Continuum of Care – Assistance #14.267 #2023-007 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance Criteria/Condition: The U.S. Department of Housing and Urban Development (HUD) conducted a monitoring assessment of the Continuum of Care Program during the year ended September 30, 2023 in order to assess the Organization’s performance and compliance with applicable federal program requirements. There were various findings noted within the monitoring report. The Organization has addressed most of the findings, but some of the findings remain open. Cause/Context: The Organization’s responses to the findings included within the HUD monitoring report were not provided in a timely manner, and various findings were not closed timely. Effect: Continued delay in response to findings could result in disciplinary action from HUD, including reduction or elimination of financial assistance. Recommendation: We recommend that all open items from the 2023 HUD monitoring report be closed by the Organization. We also recommend that the Organization respond timely to HUD to clear any findings resulting from the upcoming monitoring assessment. Views of Responsible Officials and Planned Corrective Actions: The Organization will address any open items from the 2023 HUD monitoring assessment and close any findings. Future findings, if any, will be closed with HUD within 30 days of receipt of the findings.

U.S. Department of Justice Crime Victim Assistance – Assistance #16.575 #2023-008 – Major Federal Award Finding – Reporting Nature of Finding: Compliance Finding Reporting and Material Weakness in Internal Controls over Compliance This is a repeat of prior year finding #2022-006. Criteria/Condition: Federal regulations 2 CFR 200.328 - 200.329 provide that required reporting under the federal program must be completed timely and accurately. The federal award agreement includes specific report filing due dates. Segregation of duties is also a key element of internal controls, including controls over compliance, and involves processes whereby the activities of one employee are reviewed or checked by the activities of another individual, and avoids one employee having the ability to perform a transaction or process from beginning to end. We noted during testing of sixteen different required reports that five of these reports tested were not filed in a timely manner. There were also no review procedures in place surrounding these reports. Cause/Context: Controls were not in place to ensure timely reporting. Only one individual was involved in the reporting process for the reports. A total of five of the reports tested were submitted more than ten days late. Effect: A lack of controls could result in late or failed reporting. Recommendation: We recommend the Organization establish procedures and controls to ensure financial and performance reports are filed timely. Views of Responsible Officials and Planned Corrective Actions: The Organization will ensure that all federal award reports are filed in a timely manner. The Organization is in the process of posting a new position, Director of Grants and Compliance. The individual in this new role will be responsible for tracking report due dates and working with the individuals responsible for the content of these reports to ensure the information is accurate and on time. In situations where the Director of Grants and Compliance is responsible for gathering the data for required reporting, the data will be reviewed by either the CFO or CEO prior to submission of the report.

U.S. Department of Justice Crime Victim Assistance – Assistance #16.575 #2023-009 – Major Federal Award Finding – Cash Management Nature of Finding: Compliance Finding Cash Management and Significant Deficiency in Internal Controls over Compliance Criteria/Condition: 2 CFR 200.305 requires that non-federal entities must minimize the time elapsing between the transfer of federal funds to the non-federal entity and the subsequent disbursement of the funds by the non-federal entity for program costs. The Organization did not have proper controls in place to verify that specific vendor invoices were paid within a reasonable amount of time of requesting reimbursement for the expenditures. Questioned Costs: $2,381 Identification of How Questioned Costs Were Computed: The issues of noncompliance related to cash management was limited to one vendor that was not paid within a reasonable amount of time of being reimbursed for the costs. This was determined to be an isolated incident. Questioned costs include the two invoices that were charged to the grant for this vendor during the year ended September 30, 2023 and were not paid to the vendor within a reasonable amount of time of being reimbursed for the expenditures. Cause/Context: Controls were not in place to ensure expenditures were paid to the vendor prior to requesting reimbursements. This circumstance was determined to be an isolated incident due to the unique nature of the vendor invoices. The Organization was withholding payment to the vendor until it determined that both invoices were proper. Effect: The lack of controls could result in requests for reimbursement being submitted for unpaid expenditures. Recommendation: We recommend the Organization establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: Each month, an aged open accounts payable report will be produced as part of the month end closing. Invoices that are past due will be paid in the following batch of payments (which are typically run weekly). If it is determined that the invoice is not being paid for a valid reason, it will be removed from accounts payable at that time.

U.S. Department of Justice Crime Victim Assistance – Assistance #16.575 #2023-009 – Major Federal Award Finding – Cash Management Nature of Finding: Compliance Finding Cash Management and Significant Deficiency in Internal Controls over Compliance Criteria/Condition: 2 CFR 200.305 requires that non-federal entities must minimize the time elapsing between the transfer of federal funds to the non-federal entity and the subsequent disbursement of the funds by the non-federal entity for program costs. The Organization did not have proper controls in place to verify that specific vendor invoices were paid within a reasonable amount of time of requesting reimbursement for the expenditures. Questioned Costs: $2,381 Identification of How Questioned Costs Were Computed: The issues of noncompliance related to cash management was limited to one vendor that was not paid within a reasonable amount of time of being reimbursed for the costs. This was determined to be an isolated incident. Questioned costs include the two invoices that were charged to the grant for this vendor during the year ended September 30, 2023 and were not paid to the vendor within a reasonable amount of time of being reimbursed for the expenditures. Cause/Context: Controls were not in place to ensure expenditures were paid to the vendor prior to requesting reimbursements. This circumstance was determined to be an isolated incident due to the unique nature of the vendor invoices. The Organization was withholding payment to the vendor until it determined that both invoices were proper. Effect: The lack of controls could result in requests for reimbursement being submitted for unpaid expenditures. Recommendation: We recommend the Organization establish procedures and incorporate controls to review that expenditures are paid prior to submitting requests for reimbursement. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: Each month, an aged open accounts payable report will be produced as part of the month end closing. Invoices that are past due will be paid in the following batch of payments (which are typically run weekly). If it is determined that the invoice is not being paid for a valid reason, it will be removed from accounts payable at that time. #2023-010 – Major Federal Award Finding – Period of Performance Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance Criteria/Condition: A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance. Questioned Costs: $20,790 Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $48,000 was selected from a population of approximately $552,000 of non-payroll expenditures. An amount of $1,817 combined from two invoices that were charged to the Crime Victim Assistance program was related to the year ending September 30, 2024 and was inappropriately charged to the grant during 2023. Questioned costs are estimated by projecting the error identified in the sample tested to the population of non-payroll expenditures of the Crime Victim Assistance program. Cause/Context: There are not proper controls in place to review invoices and assign them to the appropriate grant period. Two expenditures out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant was for a contracted annual service that covered multiple performance periods but was billed in its entirety to the current fiscal year. Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year. Recommendation: We recommend procedures are established to review for proper grant period when recording transactions and creating monthly reimbursement requests. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures. 1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice. 2. The CFO will review the month and year noted by the Staff Accountant prior to entry into accounts payable.

U.S. Department of Homeland Security, U.S. Department of Justice, and U.S. Department of Health and Human Services #2023-011 – Major Federal Award Finding Nature of Finding: Significant Deficiency in Internal Controls over Compliance This is a repeat of prior year finding #2022-007. Criteria/Condition: Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with §200.502. For SEFA reporting, federal expenditures were not disclosed for one program and were overstated or understated for other programs. Cause/Context: Expenditures for the Emergency Food and Shelter National Board Program were excluded from the client-prepared SEFA. There were various other grants with allocations between state and federal funding that were not presented properly on the SEFA. The SEFA presented has been adjusted for these errors. Effect: Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: The Organization will implement the following changes in its accounting procedures: The Schedule of Expenditures of Federal Awards (SEFA) will be reviewed for accuracy by either the CFO or CEO after it is produced, to ensure that all federal awards are included, and that the amounts on the schedule are accurate.

Assistance Listing Number, Federal Agency, and Program Name 14.267, U.S. Department of Housing and Urban Development, Continuum of Care Program Federal Award Identification Number and Year M10171L5F061912, 2021; MI10171L5F062013, 2022; MI0616D5F062002, 2021; MI0616D5F062103, 2022 Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria Per 2 CFR 180.300, before entering into a covered transaction with another person, grant recipients must verify that the person with whom they intend to do business is not excluded or disqualified. This is done by (a) checking SAM exclusions, (b) collecting a certification from that person, or (c) adding a clause or condition to the covered transaction with that person. Condition Controls in place did not ensure the Organization verified landlords paid were not excluded or disqualified prior to entering into transactions with the landlords. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context The Organization entered into various lease agreements with 16 landlords during the year without verifying whether they were excluded or disqualified prior to entering into the lease. Cause and Effect The Organization did not follow its suspension and debarment policies. While no disqualified or excluded landlords were identified as a result of the audit, lack of controls in place to verify status prior to entering into a covered transaction can result in possible questioned costs. Recommendation We recommend the Organization establish a procedure to utilize one of the three methods outlined for checking for excluded or disqualified persons prior to entering into lease agreements. Further, we recommend a periodic review process be established to ensure the procedure is implemented timely. Views of Responsible Officials and Corrective Action Plan The Organization did not have any new landlords that were used for the new fiscal year to verify. The Project Heal department accepts clients under the HUD Rapid Rehousing grant in which landlords are already put in place with the clients ? the YWCA assumes the rent payment or a portion of, to help survivors with costs. Annual checks will continue to be run on landlords in which the leases are in the name of the YWCA. Landlords will be verified using the public record search on SAM.gov for exclusions or disqualifications prior to entering into a lease agreement. We will also add a clause in the transaction instrument (lease) indicating that we will not do business with disqualified or excluded entities/individuals. We will also periodically (at least annually) review the status of vendors utilizing SAM.gov.

Assistance Listing Number, Federal Agency, and Program Name 14.267, U.S. Department of Housing and Urban Development, Continuum of Care Program Federal Award Identification Number and Year M10171L5F061912, 2021; MI10171L5F062013, 2022; MI0616D5F062002, 2021; MI0616D5F062103, 2022 Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria Per 24 CFR 578.49, rent paid must be reasonable in relation to rents being charged in the area for comparable space. Condition Controls in place did not ensure the Organization verified rent paid is reasonable in relation to rents being charged in the area for comparable space. Questioned Costs $1,249 Identification of How Questioned Costs Were Computed Questioned costs consist of rent paid for which documentation does not support reasonableness. Context For one of the seven rent payments tested, we were unable to conclude if the rent was reasonable in relation to rents being charged in the area for comparable space as the documentation maintained did not contain information on the number of bedrooms in the rental unit. Further, in review of the other six rent payments tested, we noted information on the number of bedrooms was not readily available and management's conclusions for rent reasonableness was not documented. Cause and Effect Controls were not in place to ensure rent reasonableness. A lack of controls, could result in questioned costs. Recommendation We recommend management establish procedures and controls to ensure documentation reviewed for rent reasonableness is maintained and the related conclusions are documented. Views of Responsible Officials and Planned Corrective Actions The Project Heal department verifies rent reasonableness before submission for grant reimbursement and/or billing is made to the finance department. The Staff Accountant called landlords to verify space against rent amount to ensure the amount charged was reasonable and verified against billing. Continuing forward, the finance department will work Project Heal to ensure all rent is paid according to space and area.

Assistance Listing Number, Federal Agency, and Program Name 16.575, U.S. Department of Justice, Crime Victim Assistance Federal Award Identification Number and Year 2018V2GX0067, 2022; 2019V2GX0036, 2022 Pass through Entity Michigan Department of Health and Human Services Finding Type Significant deficiency Repeat Finding Yes 2021 004 Criteria Per 2 CFR 200.303, an entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with Federal statutes, regulations, and the terms and conditions of the federal award. The federal award agreement includes specific report filing due dates. Condition For each of the four Crime Victim Assistance grants, thirteen monthly financial status reports (FSR) and eight quarterly work plan reports were not filed within 30 days and 15 days, respectively, of period end, as required by the grant agreements. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context A total of twenty one of the sixty eight reports filed were between 1 and 10 days late. Cause and Effect Controls were not in place to ensure timely reporting. A lack of controls, could result in late or failed reporting. Recommendation We recommend the Organization review its procedures and controls to ensure financial and performance reports are filed timely. Views of Responsible Officials and Planned Corrective Actions Management will establish a reporting calendar for review and approval during the onboarding of each grant agreement. Management will periodically review the completeness and accuracy of and adherence to the reporting calendar. After several staffing changes were made, all reports and financial status reports have been submitted timely. A calendar has been created as of August 2022 and being fully utilized.

Assistance Listing Number, Federal Agency, and Program Name 93.558, U.S. Department of Health and Human Services, Temporary Assistance for Needy Families; 97.024, U.S. Department of Homeland Security, Emergency Food and Shelter National Board Program; 14.231, U.S. Department of Housing and Urban Development, Emergency Solutions Grant Program Federal Award Identification Number and Year 2101MITANF, 2021 and 2201MITANF, 2022; Not Applicable; E 20 DW 26 0001, 2020 Pass through Entity Michigan Department of Health and Human Services; United Way Finding Type Significant deficiency Repeat Finding Yes 2021 003 Criteria Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with ?200.502. Condition For SEFA reporting, expenditures were overstated for one program and understated for another. In addition, an ALN listed for expenditures was inaccurate. Questioned Costs None Identification of How Questioned Costs Were Computed Not applicable Context Expenditures for the Temporary Assistance for Needy Families program were overstated by $106,341. Expenditures for the Emergency Food and Shelter National Board Program were understated by $21,983. Expenditures for the Emergency Solutions Grant Program were listed under ALN 14.248. The SEFA presented has been adjusted for these errors. Cause and Effect Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation We recommend the Organization review its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions Grant documents will be reviewed upon receipt to determine the proper ALN and the federal portion of funding. All existing grants will also be reviewed. The ALN listed in each grant document will be used when completing the SEFA. A second staff member will verify the accuracy of the SEFA prior to submission. All ALN numbers will be reviewed upon receipt and verified with state analysts when applicable. The organization will ensure that the funding sources are verified to the most appropriate level at the state level to verify funds and funding sources.

Assistance Listing Number, Federal Agency, and Program Name - 14.267, U.S. Department of Housing and Urban Development, Continuum of Care; 16.575, U.S. Department of Justice, Crime Victim Assistance; 93.558, U.S. Department of Health and Human Services, Temporary Assistance for Needy Families Federal Award Identification Number and Year - MI0616D5F062002, 2021; 2018V2GX0067, 2021; 2001MITANF, 2020 Pass through Entity - Michigan Department of Health and Human Services Finding Type - Material weakness Repeat Finding - Yes 2020 002 Criteria - Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with ?200.502. Condition - For SEFA reporting, expenditures were improperly included for one program and improperly excluded for three other programs. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - Expenditures for the Temporary Assistance for Needy Families program were overstated by $147,137. Further, expenditures totaling $268,810 and 142,237 for the Continuum of Care and Crime Victim Assistance programs, respectively, were understated. The SEFA presented has been adjusted for these errors. Cause and Effect - Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation - We recommend the Organization review its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Corrective Action Plan - Grant documents will be reviewed upon receipt to determine the proper ALN and the federal portion of funding. All existing grants will also be reviewed. The ALN listed in each grant document will be used when completing the SEFA. A second staff member will verify the accuracy of the SEFA prior to submission.

Assistance Listing Number, Federal Agency, and Program Name - 16.575, U.S. Department of Justice, Crime Victim Assistance Federal Award Identification Number and Year - 2018V2GX0067, 2021 Pass through Entity - Michigan Department of Health and Human Services Finding Type - Significant deficiency Repeat Finding - No Criteria - Per 2 CFR 200.303, an entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The Federal award agreement includes specific report filing due dates. Condition - For each of the four Crime Victim Assistance grants, two monthly Financial Status Reports (FSR) and four quarterly Work Plan Reports were not filed within 30 days and 15 days of period end, respectively, as required by the grant agreements. Questioned Costs - None Identification of How Questioned Costs Were Computed - Not applicable Context - Six of the sixteen reports filed were between two and twelve days late. Cause and Effect - Controls were not in place to ensure timely reporting. Recommendation - We recommend the Organization review its procedures and controls to ensure financial and performance reports are filed timely. Views of Responsible Officials and Planned Corrective Actions - Management will establish a reporting calendar for review and approval during the onboarding of each grant agreement. Management will periodically review the completeness and accuracy of and adherence to the reporting calendar.

CFDA Number, Federal Agency, and Program Name 14.267 Continuum of Care Program Federal Award Identification Number and Year HEAL MI 0171L5F061710 & HEAL MI 0171L5F061811 Pass through Entity N/A Finding Type Significant deficiency and material noncompliance with laws and regulations Repeat Finding No Criteria Per 2 CFR 180.300 before entering into a covered transaction with another person, grant recipients must verify that the person with whom they intend to do business is not excluded or disqualified. The Organization does not have a process in place to check whether landlords are suspended or debarred prior to entering into lease agreements. This is done by (a) checking SAM Exclusions; or (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition Controls in place did not ensure that the Organization verified that landlords paid under the Continuum of Care Program were not excluded or disqualified prior to entering into transactions with the landlords. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The Organization entered into various lease agreements with five landlords during the year without verifying whether they were excluded or disqualified prior to entering into the lease. Cause and Effect While no disqualified or excluded landlords were identified as a result of the audit, lack of controls in place to verify status prior to entering into a covered transaction can result in possible questioned costs. Recommendation We recommend the Organization establish a procedure to utilize one of the three methods outlined for checking for excluded or disqualified persons prior to entering into lease agreements. Further we recommend a periodic review process is established to ensure procedure is implemented timely. Views of Responsible Officials and Corrective Action Plan Landlords will be verified using the public record search on SAM.gov for exclusions or disqualifications prior to entering into a lease agreement. We will also add a clause in the transaction instrument (lease) indicating that we will not do business with disqualified or excluded entities/individuals. We will also periodically (at least annually) review the status of vendors utilizing SAM.gov.

CFDA Number, Federal Agency, and Program Name 16.017 Sexual Assault Services Program Federal Award Identification Number and Year 2018KFAX0060, 2019 Pass through Entity Michigan Department of Health and Human Services Finding Type Significant deficiency Repeat Finding No Criteria Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period of covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with ?200.502. Condition Controls in place did not ensure the SEFA was complete and accurate. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context During our audit procedures it was identified that expenditures for the sexual assault services program were improperly identified as another program. As a result, federal expenditures for CFDA number 93.558 were overstated and federal expenditures for CFDA number 16.017 were understated prior to correction. Additionally, the expenditures identified for this program improperly included State funded expenditures which should be omitted from the SEFA. Cause and Effect Controls in place did not identify expenditures included with the incorrect CFDA number, that a CFDA number was excluded from the SEFA, and that the total expenditures reported included State funded amounts. An adjustment was required to increase CFDA number 16.017 by $100,000 and reduce total federal expenditures by $66,137. Recommendation We recommend the Organization review its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions Grant documents will be reviewed upon receipt to determine the proper CFDA number and the portion of funding that is federal. All exited grants will also be reviewed. The CFDA number as listed in each grant document will be used when completing the SEFA. A second staff member will verify the accuracy of the SEFA prior to submission.