RED RIVER VALLEY COMMUNITY ACTION

2024-003 Federal Program AL 93.569 Community Services Block Grant Compliance Requirement Special Test – Tri-Partite Board Compliance Criteria The CSBG Act at 42 USC 9910(a), requires nonprofit organizations administer CSBG through a board comprising of one third of the members be elected representatives in the community or their designee and not fewer than one third of the members be representatives of the lowincome individuals and families served. Condition The Organization’s board did not meet the one third requirement for representatives of lowincome individuals. Cause The Organization has not been able to find board members to meet the low-income criteria. Effect The Organization did not meet the Tri-Partite Board Compliance requirement. Context The Organization has a total of 10 board member positions. During the year ended June 30, 2024, the Organization only had 2 low-income representative board members, instead of the 3 required. The Organization met the other requirement by having 5 members that are elected representatives in the community or their designee. Questioned Costs None Repeat Finding Yes - Prior audit finding 2023-004. Recommendation The Organization should continue to look for board members who represent the low-income community. Views of Responsible Officials and Planned Corrective Actions Management agrees with the recommendation and will continue to look for low-income representative board members.

2024-004 All federal programs Criteria 2 CFR § 200.512(a)(1) states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The Organizaton is required to submit the data collection form electronically to the Federal Audit Clearinghouse. This is to be completed within 30 days of report issuance or nine months after year-end (June 30), whichever is earlier. The data collection forms for the year ended June 30, 2024 was not timely filed. Cause The Organization had not completed its audit as of the due date, therefore the data collection form was not filed in a timely manner. Effect The Organization was not in compliance with the requirements for filing the data collection form. Context The Organization’s June 30, 2024 audited financial statements was not completed as of the due date, therefore the data collection form was not filed timely. Repeat Finding This is not a repeat finding in the current year. Recommendation We recommend that the Organization ensure that the audit is completed in a timely manner and the data collection form is filed within the required timeline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan.

Federal Program AL 93.569 Community Services Block Grant Compliance Requirement Activities Allowed or Unallowed and Allowable Costs/Cost Principles. Criteria The Uniform Guidance requires charges to federal awards to be approved by the Organization and these approvals need to be documented. Condition Two journal entry transactions tested were missing the approval documentation. Cause The Organization did not have sufficient procedures in place to ensure that approvals are documented for all expenses charged to grants. Effect Two journal entry transactions charging expenses to this federal program were missing the approval documentation. Context A sample of 40 transactions were selected for testing this federal program. Only two transactions tested were missing the approval documentation. Questioned Costs None Repeat Finding No Recommendation The Organization should implement procedures to ensure that all expenses are approved and this approval documentation is maintained. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement in 2024.

Federal Program AL 93.569 Community Services Block Grant Compliance Requirement Special Test – Tri-Partite Board Compliance Criteria The CSBG Act at 42 USC 9910(a), requires nonprofit organizations administer CSBG through a board comprising of one third of the members be elected representatives in the community or their designee and not fewer than one third of the members be representatives of the lowincome individuals and families served. Condition The Organization’s board did not meet the one third requirement for representatives of lowincome individuals. Cause The Organization has not been able to find board members to meet the low-income criteria. Effect The Organization did not meet the Tri-Partite Board Compliance requirement. Context The Organization has a total of 12 board member positions. During the year ended June 30, 2023, the Organization only had 2 low-income representative board members, instead of the 4 required. The Organization met the other requirement by having 4 members that are elected representatives in the community or their designee. Questioned Costs None Repeat Finding Yes - Prior audit finding 2022-004. Recommendation The Organization should continue to look for board members who represent the low-income community. Views of Responsible Officials and Planned Corrective Actions Management agrees with the recommendation and will continue to look for low-income representative board members.

2022-003 Federal Program AL 93.569 Community Services Block Grant Compliance Requirement Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance Criteria Per Uniform Guidance 2 CFR section 200.403(h), a non-federal entity may charge only allowable costs incurred during the federal award?s period of performance or grant period. The ?Basic Guidelines? section of 2 CFR Part 200, Subpart E Section 200.403, requires charges to federal awards to be necessary and reasonable for the performance of the federal award and be allocable thereto under these principles. Costs must also be adequately documented. Condition The Organization did not have the invoice or other supporting documentation for a credit card transaction charged to this federal program. Therefore, was unable to determine period of performance for this expense or if this was an allowable cost or activity. An employee who left the Organization was paid a percentage of their sick leave bank that exceeded the Organization?s policy. This severance payment was charged to this federal program. Cause The Organization did not have sufficient procedures in place to ensure all supporting documentation for disbursements are obtained and to ensure the correct severance amount is paid based on the Organization?s policy. Effect The Organization charged this federal program for an expense with no supporting documentation and an employee overpayment. Context A sample of 46 transactions were selected for testing this federal program. The Organization did not have supporting documentation for one credit card transaction. The Organization has a severance policy that allows employees to be paid 10% of their sick leave bank balance when they leave the Organization. This employee was eligible for 96 hours of sick leave but was paid for 114 hours due to an error in the calculation. Questioned Costs Immaterial Repeat Finding No Recommendation The Organization should review their policies and procedures to ensure supporting documentation is obtained for all disbursements and employees are paid the correct amount based on the Organization?s policy. Views of Responsible Officials and Planned Corrective Actions Management agrees with the recommendation and will review their procedures to ensure all supporting documentation is obtained for disbursements and employees are paid the correct amount per policy.

Federal Program AL 93.569 Community Services Block Grant Compliance Requirement Special Test ? Tri-Partite Board Compliance Criteria The CSBG Act at 42 USC 9910(a), requires nonprofit organizations administer CSBG through a board comprising of one third of the members be elected representatives in the community or their designee and not fewer than one third of the members be representatives of the lowincome individuals and families served. Condition The Organization?s board did not meet the one third requirement for representatives of lowincome individuals. Cause The Organization has not been able to find board members to meet the low-income criteria. Effect The Organization did not meet the Tri-Partite Board Compliance requirement. Context The Organization has a total of 12 board member positions. During the year ended June 30, 2022, the Organization only had 3 low-income representative board members, instead of the 4 required. The Organization met the other requirement by having 4 members that are elected representatives in the community or their designee. Questioned Costs None Repeat Finding No Recommendation The Organization should continue to look for board members who represent the low-income community. Views of Responsible Officials and Planned Corrective Actions Management agrees with the recommendation and will continue to look for low-income representative board members.

2019-002 Community Services Block Grant CFDA 93.569 Criteria The ?Basic Guidelines? section of 2 CFR Part 230, Attachment B Paragraph 8 requires charges to grants for salaries and wages to be based on documented payrolls approved by the Organization. Condition One employee?s payroll expense charged to the grant was not based on the approved wage rate for the employee. Cause The Organization did not have sufficient procedures in place to ensure that payroll changes are properly made in the payroll system. Effect The payroll expense charged to the grant was not supported by the approved payroll rates. Questioned Costs None Context A sample of 22 payroll transactions were selected for testing. One payroll transaction tested was calculated based on an incorrect wage rate. This employee had received a pay increase and the new rate had not been entered into the payroll system. Recommendation The Organization should review their procedures for updating payroll information in the payroll system to ensure all payroll changes are properly made. Repeat Finding No. Views of Responsible Officials and Planned Corrective Actions The Organization will review their procedures to ensure payroll changes are correctly made in the payroll system.

GSA_MIGRATION