NCR Permanent Supportive Housing Services

2022-001 ? Account reconciliations, audit journal entries, and overall audit readiness Condition Audit adjustments were necessary to be recorded after the start of audit fieldwork as a result of inquiries of management as part of audit procedures performed. Criteria Internal controls and appropriate policies and procedures should be in place so that the financial statements are in accordance with accounting principles generally accepted in the United States of America. Cause Incomplete application of internal controls and policies and procedures. Effect Financial statement amounts could be materially misstated. Recommendation We recommend timely reconciliation and review of account balances/transactions, including performing such reconciliations for each funding source, in order to verify accounting records are complete, accurate, and in accordance with accounting principles generally accepted in the United States of America. Views of Responsible Officials and Planned Corrective Actions A new accounting system implemented in the prior year significantly changed processes and reporting for PSHS grant reporting. While we have made good progress over the past year, the timeliness of reconciliations is not yet at an acceptable level. We recently hired additional staff to focus on these reconciliations in order to ensure timely, monthly reconciliations. In addition, we recently replaced an open position for a finance lead with expertise in our financial software. With the additional internal staffing resources, combined with consulting with our software vendor, we anticipate much improved reporting and timeliness for PSHS.

CORRECTIVE ACTION PLAN December 21, 2022 U.S. Department of Housing and Urban Development: NCR Permanent Supportive Housing Services (PSHS) respectively submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: HW&Co. 460 Polaris Pkwy., Suite 300 Westerville, OH 43082-8213 Audit period: July 1, 2021 through June 30, 2022 The finding from the June 30, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDING?FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2022-001 ? Account reconciliations, audit journal entries, and overall audit readiness Recommendation: We recommend timely reconciliation and review of account balances/transactions, including performing such reconciliations for each funding source, in order to verify accounting records are complete, accurate, and in accordance with accounting principles generally accepted in the United States of America. Action Taken: A new accounting system implemented in the prior year significantly changed processes and reporting for PSHS grant reporting. While we have made good progress over the past year, the timeliness of reconciliations is not yet at an acceptable level. We recently hired additional staff to focus on these reconciliations in order to ensure timely, monthly reconciliations. In addition, we recently replaced an open position for a finance lead with expertise in our financial software. With the additional internal staffing resources, combined with consulting with our software vendor, we anticipate much improved reporting and timeliness for PSHS. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ? CONTINUUM OF CARE PROGRAM ? ASSISTANCE LISTING No. 14.267 Material Weakness: See Finding 2022-001

2021-001

2021-001 ? Account reconciliations, audit journal entries, and overall audit readiness Condition Audit adjustments were necessary to be recorded after the start of audit fieldwork as a result of inquiries of management as part of audit procedures performed. Criteria Internal controls and appropriate policies and procedures should be in place so that the financial statements are in accordance with accounting principles generally accepted in the United States of America. Cause Incomplete application of internal controls and policies and procedures. Effect Financial statement amounts could be materially misstated. Recommendation We recommend timely reconciliation and review of account balances/transactions, including performing such reconciliations for each funding source, in order to verify accounting records are complete, accurate, and in accordance with accounting principles generally accepted in the United States of America. Views of Responsible Officials and Planned Corrective Actions Mid-fiscal year, a new system was implemented which significantly changed the processes in place to report and track grant related revenue and expenses for this entity. The complexity of completing year end reporting from two different systems, adaptation of new processes, and lack of adequate knowledge related to the grants module of PSHS? new financial system, caused significant delays in finalizing year-end financial reports. Post-audit, PSHS has improved its understanding of the system, and deployed additional staff and focus to ensure timely financials in the future.

CORRECTIVE ACTION PLAN April 26, 2022 U.S. Department of Housing and Urban Development and U.S. Department of Health and Human Services: NCR Permanent Supportive Housing Services respectively submits the following corrective action plan for the year ended June 30, 2021. Name and address of independent public accounting firm: HW&Co. 460 Polaris Pkwy., Suite 300 Westerville, OH 43082-8213 Audit period: July 1, 2020 through June 30, 2021 The finding from the June 30, 2021 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDING?FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2021-001 ? Account reconciliations, audit journal entries, and overall audit readiness Recommendation: We recommend timely reconciliation and review of account balances/transactions, including performing such reconciliations for each funding source, in order to verify accounting records are complete, accurate, and in accordance with accounting principles generally accepted in the United States of America. Action Taken: Mid-fiscal year, a new system was implemented which significantly changed the processes in place to report and track grant related revenue and expenses for this entity. The complexity of completing year end reporting from two different systems, adaptation of new processes, and lack of adequate knowledge related to the grants module of PSHS? new financial system, caused significant delays in finalizing year-end financial reports. Post-audit, PSHS has improved its understanding of the system, and deployed additional staff and focus to ensure timely financials in the future. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ? CONTINUUM OF CARE PROGRAM ? ASSISTANCE LISTING No. 14.267 Material Weakness: See Finding 2021-001 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES ? MENTAL HEALTH DISASTER ASSISTANCE AND EMERGENCY MENTAL HEALTH ? ASSISTANCE LISTING No. 93.982 Material Weakness: See Finding 2021-001 If there are any questions regarding this plan, please call Julie Fratianne at 614.273.3508.