The Project of the Quad Cities, Inc.

2025–001: Financial Statement Year–End Close Finding: The Organization has insufficient procedures and controls related to their financial statement year–end close process. Criteria: A properly designed system of internal control over financial reporting requires entities to initiate, authorize, record, process and report financial data reliably in accordance with U.S. generally accepted accounting principles. Condition and Context: During the March 31, 2025 audit, there were several year–end account balances that were materially inaccurate and required audit adjustments. Cause: Due to management turnover and other complexities during the year and at year–end, the processes and reconciliations required to provide accurate year–end balances were not performed. Effect: The Organization’s year–end account balances required audit adjustments in order to be materially accurate in accordance with U.S. generally accepted accounting principles. Identification as a Repeat Findings: This is a repeat finding of 2024–01. Recommendation: We recommend that the Organization develop and maintain effective procedures and controls in order to provide accurate year–end account balances. Response and Corrective Action Planned: The Organization will review and implement processes and controls to ensure they provide accurate year–end account balances. Conclusion: Response accepted

2024-001 Finding: The Organization has insufficient procedures and controls related to their financial statement year-end close process. Criteria: A properly designed system of internal control over financial reporting requires entities to initiate, authorize, record, process, and report financial data reliably in accordance with U.S. generally accepted accounting principles. Condition and context: During the March 31, 2024 audit, there were several year-end account balances that were materially inaccurate and required adjustments. Cause: Due to management turnover and other complexities at year-end, the processes and reconciliations required to provide accurate year-end balances were not performed. Effect: The Organization's year-end account balances required adjustments in order to be materially accurate in accordance with U.S. generally accepted accounting principles. Identification as a Repeat Findings: This is not a repeat finding. Recommendation: We recommend that the Organization develop and maintain effective procedures and controls in order to provide accurate year-end account balances. Response and Corrective Action Planned: The Organization will review and implement processes and controls to ensure they provide accurate year-end account balances. Conclusion: Response accepted.

2022-001: Segregation of Duties Criteria: Management is responsible for establishing and maintaining effective internal controls. Condition and Context: During our review and testing of internal controls, we noted that certain primary accounting functions or activities of the Organization are performed and/or approved by the same individual. Effect: The Organization?s internal control structure does not result in adequate segregation of duties to prevent losses from employee error and dishonesty. Cause: The Organization has a limited number of office personnel who have direct responsibilities for the recording and reconciling functions in the primary transaction cycles. Identification as a Repeat Findings: This is a repeat finding of 2021-001 and 2020-001. Recommendation: With a limited number of personnel and funds, segregation of duties is difficult. The Organization should continue to review its operating procedures to attempt to obtain the maximum internal control within the limited available resources. The Board should continue to closely monitor and perform periodic oversight of the Organization?s monthly financial activities. Response and Corrective Action Planned: The Project of the Quad Cities has implementing new accounting software which will tighten internal controls with a limited staff. We will apply features in the system that will reduce and eliminate risk to the Organization. The Board of Directors has recruited an experienced professional in the community to serve as Treasurer on the Board. Collaboration will continue with our independent accounting firm to ensure that we are following all appropriate accounting practices. Conclusion: Response accepted

2022-002: Segregation of Duties Department of Health and Human Services: Pass-through Iowa Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 Pass-through Illinois Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 See finding 2022-001

2021-001: Segregation of Duties Criteria: Management is responsible for establishing and maintaining effective internal controls. Condition and Context: During our review and testing of internal controls, we noted that certain primary accounting functions or activities of the Organization are performed and/or approved by the same individual. Effect: The Organization?s internal control structure does not result in adequate segregation of duties to prevent losses from employee error and dishonesty. Cause: The Organization has a limited number of office personnel who have direct responsibilities for the recording and reconciling functions in the primary transaction cycles. Identification as a Repeat Findings: This is a repeat finding of 2020-001. Recommendation: With a limited number of personnel and funds, segregation of duties is difficult. The Organization should continue to review its operating procedures to attempt to obtain the maximum internal control within the limited available resources. The Board should continue to closely monitor and perform periodic oversight of the Organization?s monthly financial activities. Response and Corrective Action Planned: The Project of the Quad Cities is currently implementing new accounting software which will tighten internal controls with a limited staff. We will apply features in the system that will reduce and eliminate risk to the Organization. The Board of Directors has recruited an experienced professional in the community to serve as Treasurer on the Board. Collaboration will continue with our independent accounting firm to ensure that we are following all appropriate accounting practices. Conclusion: Response accepted

2021-002: Segregation of Duties Department of Health and Human Services: Pass-through Iowa Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 Pass-through Illinois Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 See finding 2021-001

2020-001: Segregation of Duties Criteria: Management is responsible for establishing and maintaining effective internal controls. Condition and Context: During our review and testing of internal controls, we noted that certain primary accounting functions or activities of the Organization are performed and/or approved by the same individual. Effect: The Organization?s internal control structure does not result in adequate segregation of duties to prevent losses from employee error and dishonesty. Cause: The Organization has a limited number of office personnel who have direct responsibilities for the recording and reconciling functions in the primary transaction cycles. Identification as a Repeat Findings: This is a repeat finding of 2019-001. Recommendation: With a limited number of personnel and funds, segregation of duties is difficult. The Organization should continue to review its operating procedures to attempt to obtain the maximum internal control within the limited available resources. The Board should continue to closely monitor and perform periodic oversight of the Organization?s monthly financial activities. Response and Corrective Action Planned: The Project of the Quad Cities is currently implementing new accounting software which will tighten internal controls with a limited staff. We will apply features in the system that will reduce and eliminate risk to the Organization. The Board of Directors is actively recruiting an experienced professional in the community to fill the position of Treasurer on the Board. The goal is to have the role filled and participating in meetings by mid-summer. Collaboration will continue with our independent accounting firm to ensure that we are following all appropriate accounting practices. Conclusion: Response accepted

2020-002: Segregation of Duties Department of Health and Human Services: Pass-through Iowa Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 Pass-through Winnebago County, IL Health Departments HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 Pass-through Illinois Department of Public Health HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B). CFDA ? 93.917 COVID-19 ? CARES Act HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B) CFDA ? 93.917 See finding 2020-001

Findings Related to the Financial StatementsSignificant Deficiency in Internal Control2019-001: Segregation of DutiesCriteria: Management is responsible for establishing and maintaining effective internal controls.Condition and Context: During our review and testing of internal controls, we noted that certain primary accounting functions or activities of the Organization are performed and/or approved by the same individual.Effect: The Organization?s internal control structure does not result in adequate segregation of duties to prevent losses from employee error and dishonesty.Cause: The Organization has a limited number of office personnel who have direct responsibilities for the recording and reconciling functions in the primary transaction cycles.Identification as a Repeat Findings: This is a repeat finding of 2018-001.Recommendation: With a limited number of personnel and funds, segregation of duties is difficult. The Organization should continue to review its operating procedures to attempt to obtain the maximum internal control within the limited available resources. The Board should continue to closely monitor and perform periodic oversight of the Organization?s monthly financial activities.Response and Corrective Action Planned: The Organization will continue efforts to address the limited number of personnel involved in fiscal responsibilities. During fiscal year 2020, the Organization will investigate ways to incorporate the Treasurer of the Board into cash reconciliation and bank statement review. Management will continue to assess the controls in place and adjust duties that help mitigate the deficiencies noted. The Organization will continue to have consistent involvement and oversight provided by the Board and/or committees of the Board and will continue to work with its independent accounting firm to further increase our capacity and knowledge in reporting and managing its fiduciary responsibilities.Conclusion: Response accepted

Findings and Questioned Costs for Federal AwardsSignificant Deficiency in Internal Control2019-002: Segregation of DutiesDepartment of Health and Human Services:Pass-through Iowa Department of Public HealthHIV Care Formula Grants (Ryan White HIV/AIDS Program). CFDA ? 93.917Pass-through Winnebago County, IL Health DepartmentsHIV Care Formula Grants (Ryan White HIV/AIDS Program). CFDA ? 93.917Pass-through Illinois Department of Public HealthRyan White Care Act Title II ? HIV Care. CFDA ? 93.917See finding 2019-001

GSA_MIGRATION