COMMUNITY ACTION PARTNERSHIP OF PROVIDENCE COUNTYNon-Profit

Statement of Condition: The September 30, 2023, audited financial statements and data collection form for the Organization were not filed within the time required by Uniform Guidance. Criteria: Uniform Guidance requires that non-federal entities that expend more than $750,000 or more in a year in federal awards shall have a single audit conducted and Section .320 requires that the audit shall be completed, and the data collection form and reporting package shall be submitted within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period. Cause: The Organization’s filing process to ensure timely filing of the data collection form and the financial statements was attributed to the delay of the audit due to the turnover of staff, thus causing a delay in the submission of the required reports. Effect: Late filing of the data collection form and reporting package will cause an auditee to be determined to be a “high-risk auditee” and could affect future federal grant funding. Recommendation: We recommend the Organization improve its year-end closing processes in order to meet all filing requirements. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the finding. The Organization's corrective action plan is included at the end of this report

Statement of Condition: During testing eligibility for the Low-Income Home Energy Assistance Program (ALN #93.568) the Organization was unable to provide documentation for three of the forty recipients selected for testing. Criteria: Organizations are required to maintain supporting documentation for all recipients receiving grant funding. In addition, there must be periodic reviews to ensure recipients still qualify for assistance. Cause: There was significant turnover within the finance department of the Organization subsequent to year-end, and prior to the start of the audit. For the selected transactions noted above, documentation, support, and records were unable to be located by the new finance team. Effect: Because the Organization was not able to provide documentation for the noted recipients, we were unable to determine whether the grants to the selected recipients were made in accordance with the applicable grant agreements. Recommendation: We recommend that the Organization strengthen its document retention and filing policies to ensure that adequate support is maintained for all recipients receiving federal grants. The Organization should also consider enhancing its accounting policies and procedures manual so that in the event of staff turnover, new employees can understand and follow those policies and procedures.

Statement of Condition: The September 30, 2022, audited financial statements and data collection form for the Organization were not filed within the time required by Uniform Guidance. Criteria: Uniform Guidance requires that non-federal entities that expend more than $750,000 or more in a year in federal awards shall have a single audit conducted and Section .320 requires that the audit shall be completed, and the data collection form and reporting package shall be submitted within the earlier of 30 days after receipt of the auditors’ report or nine months after the end of the audit period. Cause: The Organization’s filing process to ensure timely filing of the data collection form and the financial statements was attributed to the delay of the audit due to the turnover of staff, thus causing a delay in the submission of the required reports. Effect: Late filing of the data collection form and reporting package will cause an auditee to be determined to be a “high-risk auditee” and could affect future federal grant funding. Recommendation: We recommend the Organization improve its year-end closing processes in order to meet all filing requirements.

Retention of Documentation to Support Allowable Costs (Material Weakness) Condition: During testing of non-payroll expenditures charged to 477 Cluster programs (specifically, Community Services Block Grant or "CSBG," and Temporary Assistance for Needy Families or "TANF"), the Organization was unable to provide documentation for five of the twenty-five expense transactions selected for testing. In addition, during testing of payroll expenditures charged to 477 Cluster programs (specifically, CSBG), for five of the twenty-five payroll transactions selected for testing, the employee positions charged to the grant did not appear in the grant agreement. Further, for ten out of the twenty-five payroll transactions selected, the amount charged exceeded the budget by more than 10%, which requires written approval from the grantor. The Organization was not able to provide the written approval for these overages. Criteria: Organizations are required to maintain relevant and reliable documentation related to expenditures claimed on cost reimbursement grants, including written approval for charges that exceed or fall outside of the program budget. Complete and adequate support should be made available to auditors, regulators, and/or grantors as requested. Cause There was significant turnover within the Finance Department of the Organization subsequent to year-end, and after the audit had started. For the selected transactions noted above, documentation, support, and records were unable to be located by the new Finance team. Effect: Because the Organization was not able to provide documentation for the noted expenditures, we were unable to determine whether the selected expenditures were made in accordance with the applicable grant agreements. Questioned Costs: With respect to the non-payroll expenditures, we identified known questioned costs totaling $8,265, and projected (likely) questioned costs totaling $215,239. For the payroll expenditures, we identified known questioned costs totaling $9,487, and projected (likely) questioned costs totaling $154,613. Recommendation: We recommend that the Organization strengthen its document retention and filing policies to ensure that adequate support is maintained for all expenditures charged to federal grants. The Organization should also consider enhancing its accounting policies and procedures manual so that in the event of staff turnover, new employees are able to understand and follow those policies and procedures.

Late Filing of Single Audit (Material Weakness) Condition: The Organization's data collection form for the year ended September 30, 2021 was not filed within nine months after year-end. Criteria: The Organization is required to submit its data collection form to the federal audit clearinghouse at the earlier date of thirty days after issuance of the financial statements or nine months after year-end. Cause: There was significant turnover within the Finance Department of the Organization subsequent to year-end, and after the audit had started. As a result, the Organization's data collection form was not submitted before its due date. Effect: The Organization's data collection form was filed late. Recommendation: It is recommended that the Organization allows for sufficient time for submitting its data collection form subsequent to the completion of its annual audit.