INNER CITY CHRISTIAN FEDERATION AND SUBSIDIARIESNon-Profit

Assistance Listing Number, Federal Agency, and Program Name - 14.218, Department of Housing and Urban Development, Community Development Block Grant 21.019, U.S. Department of Treasury, Coronavirus Relief Fund Federal Award Identification Number and Year - B15MC260019, 2021; CRF-NPA-0103, 2021; CRF-NPA-0164, 2021 Pass through Entity - City of Grand Rapids, Kent County Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.508(b), an auditee must prepare appropriate financial statements, including the schedule of expenditures of federal awards, in accordance with 2 CFR 200.510. Per 2 CFR 200.510(b), the auditee must also prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 2 CFR 200.502, basis for determining federal awards expended. Condition - Controls in place were not adequate to ensure the Schedule was complete and accurate. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The following grant was not included in the original Schedule prepared by the auditee and should have been, therefore understating the Schedule: 14.218, Community Development Block Grants - $630,497 The following program was included the original Schedule prepared by the auditee and should not have been, therefore overstating the Schedule: 14.239, Home Investment Partnerships Program - $63,654 The following program was understated on the original Schedule prepared by the auditee by the stated amount: 21.019, Coronavirus Relief Fund - $58,399 In total, the above original Schedule prepared was understated by $625,242. Cause and Effect - Controls in place did not identify expenditures that were excluded from the Schedule, expenditures included in the Schedule that should not have been, as well as expenditures that were understated on the Schedule. Recommendation - We recommend the Organization review the individual grant agreements and applicable guidance to ensure proper amounts are reported on the Schedule. Views of Responsible Officials and Corrective Action Plan - All federal funds will be tracked on a spreadsheet. Program managers will review grant agreements to determine if the awards are subject to single audit. The Controller will review to ensure any subject to single audit are included in the Schedule of Expenditures of Federal Awards (SEFA). Prior Year - None