Tenants to Homeowners, Inc.

Double reported expenses (Material Weakness) Criteria: CFR 200 § 200.328. The recipient or subrecipient must submit timely and accurate financial reports as required by the Federal award. Condition: Expenses were used for both a draw request of funds and reporting of funds for separate federal funding sources. Cause: Tracking of expenditures at the project level and not against the grant funding and lack of segregation of duties related to grant reporting. Effect: Reporting for the federal program was not accurate based on the expenses used. Questioned Costs: $75,827 Perspective: Federal expenditures were found to be used for reporting purposes of the 21.027 funds but then requested in a draw process for the HOME loan expenses (CFDA 14.239). The funding allowed expenditures from the same projects and the timing of the funding overlapped. The Organization was able to identify additional expenditures for the 21.027 funds to cover the questioned costs. Repeat Finding: No Recommendation: We recommend expenditures be tracked against grant funding instead of only the project level, separate preparation and review of reporting, and additional review and oversight of those charged with governance. Views of Responsible Officials: Management acknowledges the control weaknesses as described above and plans to develop proper policies and procedures in order for the funds to be correctly used for each grant source.

2022-002 Internal Controls over Schedule of Expenditures of Federal Awards Preparation (Material Weakness) Federal Agency: Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award period: Year ended December 31, 2022 Criteria: According to 2 CFR 200, Subpart F, the Organization is required to prepare a schedule of federal expenditures, which must include the total federal awards expended as determined in accordance with ?200.502. An effective internal control system exists if controls are effective in preventing or detecting material misstatements in the preparation of the schedule of federal expenditures of federal awards (the schedule). It provides reasonable assurance for the reliability of financial information and compliance with laws and regulations. Condition: We have determined that there was an inadequate design of internal control over the preparation of the schedule during the fiscal year ended December 31, 2022. The current financial reporting process does not ensure accuracy and completeness in the preparation of the schedule as required by Uniform Guidance. Cause: The Organization?s policies and procedures were not designed to prepare the schedule in conformity with Uniform Guidance. Effect: The Organization did not prepare the schedule in conformity with Uniform Guidance as material adjustments were made to the expenditures of federal awards. This includes identifying the correct assistance listing number of its federal programs. This increases the likelihood of a material misstatement and noncompliance with laws and regulations. Recommendation: We recommend the Board of Directors and management review the financial reporting process. Once this review is complete, the Organization should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure conformity with Uniform Guidance. Questioned costs: None Repeat Finding: N/a. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies and procedures for the internal control over compliance to ensure accuracy and completeness in the preparation of the schedule as required by Uniform Guidance.

2019-005 Written Procedures of Internal Control over Compliance (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Program Name: Home Investment Partnerships Program CFDA Number: 14.239 Award period: Year ended December 31, 2019 Criteria: According to 2 CFR 200, Subparts D and E an Organization is required to maintain written policies for the internal control over compliance of federal awards. Condition: The Organization does not maintain these written policies for the internal control over compliance of federal awards. Cause: The Organization?s policies and procedures were not designed to include written policies for the internal control over compliance of federal awards. Effect: The absence of the review and approval of updated reconciliations increases the risk that errors or misappropriation could occur and go undetected. Recommendation: We recommend that the Organization develop written policies for the internal control over compliance of federal awards. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies for the internal control over compliance of federal awards.