PERSPECTIVES, INC.Non-Profit

2020-003 Federal Agency: All Federal Program Title: All Assistance Listing Number: Various Pass-Through Agency: All Pass-Through Number(s): All Award Period: January 1, 2020 through December 31, 2020 Type of Finding: -Significant Deficiency in Internal Control over Compliance -Other matters Criteria or specific requirement: Title 2 U.S. Code of Federal Regulations Part 200.512, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that the single audit reporting package be submitted the earlier of 30 days after receipt of the independent auditors' report, or nine months after year-end. Condition: The Organization's 2020 single audit reporting package was not submitted within the required timeframe. Questioned costs: Not applicable. Context: Not applicable. Cause: The Organization had employee turnover as well as significant year-end activity that was not resolved timely. Effect: The single audit reporting package was submitted more than nine months after year-end, which was after the required reporting time period. Repeat Finding: 2019-003 Recommendation: The Organization should establish policies and procedures to submit the single audit reported package within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: All Federal Program Title: All CFDA Number: Various Pass-Through Agency: All Pass-Through Number(s): Award Period: June 30, 2019 Type of Finding: Significant Deficiency in Internal Control over Compliance Other matters Criteria or specific requirement: Title 2 U.S. Code of Federal Regulations Part 200.512, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires that the single audit reporting package be submitted the earlier of 30 days after receipt of the independent auditors? report, or 9 months after year-end. Condition: The Organization?s 2019 single audit reporting package was not submitted within the required timeframe. Questioned costs: Not applicable. Context: Not applicable. Cause: The Organization had employee turnover as well as significant year-end activity that was not resolved timely. Effect: The single audit reporting package was submitted more than 9 months after year-end, which was after the required reporting time period. Repeat Finding: 2018-003 Recommendation: The Organization should establish policies and procedures to submit the single audit reported package within the required timeframe. Views of responsible officials: The Organization has experienced higher than normal turnover in the Controller position over the last four years. While a new Senior Accountant was hired in November 2019, the finance department expansion was completed in March 2021 with the hire of a new position of Accounting Manager. This increase in finance staffing has resulted in the ability to shift our year-end workflow to a timely completion the annual audit beginning for the 2021 calendar year.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Continuum of Care Program CFDA Number: 14.267 Award Period: February 1, 2018-January 31, 2019; February 1, 2019 ? January 31, 2020; June 1, 2018 ? May 30, 2019; June 1, 2019 ? May 31, 2020; October 18, 2018 ? September 30, 2020 Type of Finding: Significant Deficiency in Internal Control over Compliance Other matters Criteria or specific requirement: Title 2 U.S. Code of Federal Regulations Part 200.309, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) states that a non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance. Condition: During our testing of the period of performance, we noted instances of costs being charged to the grant awards prior to the start date of the various grants. Questioned costs: $2,397 Context: Three instances were noted where costs were charged to a grant yet incurred prior to the start date of the grant. Cause: Costs were charged to the grant based on the date paid instead of the date incurred. Effect: Expenses incurred prior to the start of the grant period were charged to the grant. Repeat Finding: Not a repeat finding. Recommendation: We recommend the Organization design procedures to ensure a proper cutoff to expenses between grant award periods. Views of responsible officials: The Organization is dedicated to ensuring a proper cutoff of expenses between grant award periods. Enhancements to the month end accrual process have been implemented to incorporate bi-weekly payroll accruals.

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