UNITED COMMUNITIES AGAINST POVERTY, INC.

Criteria: 2 CFR section 200.512 requires that an non-federal entity?s single audit and data collection form must be submitted within the earlier of thirty days after the receipt of the auditor?s report or nine months after the end of the audit period. Condition: UCAP?s audited financial statements for the June 30, 2022 year-end were not submitted to the Federal Audit Clearing House within the stipulated nine months after year-end. Context: This is a condition identified based on review of Uniform Guidance requirements. Questioned Cost: $ 0 Cause: During FY2022, the pass-through entity agreed to allow UCAP to capture more costs under CSBG Cares supplemental funds, which resulted in heavy workload in reconciliations and consequently the report being submitted late. Effect: The program is not in compliance with reporting compliance of the Office of Management and Budget for non-profit, state and local government entities. Identification of a Repeat Finding: This is not a repeat finding in the immediately prior audit. Recommendation: We recommend that UCAP works to have reconciliations completed on a timely basis and have its audits completed timely in the upcoming year to comply with federal guidelines. Views of Responsible Officials and Planned Corrective Action Plan: During the year ended 6/30/22, UCAP received additional funding due to the Cares Act. As such, the organization had an obligation to spend all funds by 9/30/22. Each of the funding sources had different sunset dates. In an effort to recapture costs, the organization went back to March 2020, the date the grant first was granted in order to recapture costs that were not previously captured under the CARES program. The Fiscal Manager?s start date was August 2020, seven months after the grant was implemented. This was an effort to use all excess Cares funding. This affected the expenditures for the year, the amounts due from grantors and the deferred revenue accounts. In turn, this affected the timely closing of the books. Planned Corrective Action: UCAP has implemented measures to ensure that there is no delay in financial reporting in the future. Responsible Official: Maryland Hutchinson, Fiscal Manager. Anticipated Completion Date: This will be complete by 6/30/2023 and will be reflected in the upcoming year-end

Audit Finding #2022-003 Reporting Name of Contact Person: Maryland Hutchinson, Fiscal Manager. Corrective Action: UCAP has implemented measures to ensure that there is no delay in financial reporting in the future. UCAP works directly with the grantors and contract administrators in order to ensure timely payment of all reimbursable grants and has implemented steps in order to ensure that costs won?t have to be recategorized in the future. Proposed Completion Date: This will be complete by 6/30/2023 and will be reflected in the upcoming year-end.

UCAP?s audited financial statements for the June 30, 2020 year-end were not submitted to the Federal Audit Clearing House within the stipulated nine months after year-end.

Management has already put into place measures to ensure timely filing in the upcoming fiscal year.

2019-001 Improve Grant Accounting, Financial Management Controls and Reporting Criteria: UCAP management is responsible for ensuring that its accounting records are complete and accurate. The ability to provide reliable financial statements on an annual and interim basis, along with other financial reports needed by management in making business decisions is paramount to UCAP's operations. Condition: It was noted that UCAP continues to have issues with portions of its grants schedule reconciliation processes. During the current year, it was noted that: ? Incorrectly posted transactions were made to grant revenue accounts, which resulted in misstatement of ending receivable balances in the financial statement, evaluation and summary. Context: This condition was identified during overall audit of financial data. Cause: It appears that UCAP is not adequately reconciling its grants schedules to ensure that the account balances are appropriately reconciled, transactions are properly recorded and variances are explained. As a result, grant revenue and expenses were improperly recorded, which resulted in incorrect revenue and related receivable balances, as well as the misstatement of temporarily restricted net assets at year-end. Identification of a Repeat Finding: This is a partial repeat finding from the immediate previous audit 2018.001. Recommendations: To help validate the completeness and accuracy of its accounting records, UCAP management should more closely review its grants schedule items, documenting and processing of grant transactions, specifically grant ending balances. After performing grant schedule reconciliations UCAP should make necessary adjusting journal entries on a timely basis. Views of Responsible Management Officials and Planned Corrective Action Plan: Grant schedules will be monitored quarterly to evaluate accuracy with the financial statements. The fiscal manager will work closely with the senior accountant, and program managers to ensure that account codes for the new grant year are recorded in a timely fashion to avoid grant expenditure postings to a prior award year. The CFO will prepare adjusting journal entries as required immediately following the quarterly reconciliation process. The journal entry to correct grant funds activity will be done monthly and reconciled to the grant schedule. To accommodate the growing demands of the finance department management has decided to hire an accounts receivable specialist to balance the workload allowing the CFO to concentrate heavily on financial reporting and timely reconciliations. The CEO will also implement a signature log to be signed by the Fiscal Manager after reconciliation meetings.

Audit Ref# 2019-001 Improve Financial Management Control and Reporting Name of Contact Person: Rasheeda Jamison-Harriott, President & CEO Corrective Action: To ensure timeliness UCAP?s Executive Director and Fiscal Manager have put into to practice monthly reconciliation of its grants scheduling to ensure its accuracy in capturing incoming funding. This was a practice not timely done which resulted in the current re-noticing of the lack of timely grants schedule reconciliations for this audit. In addition to the fact that Management has implemented a monthly reconciliation process of grant scheduling, it continues bi-weekly finance meetings. Management has intended quarterly grants schedule reconciliation meetings to be attended by program managers. This practice suggested that UCAP would perform ongoing grants schedule reconciliations to ensure accurate data entry and compliance with grant requirements and federal guidelines. In addition to the meetings and reconciliations, where necessary UCAP shall produce and makes necessary periodic adjusting journal entries when necessary. It appears that the monthly entries have not been consistently made. Proposed Completion Date: Immediately post adjusting journal entries upon verifying the necessity of AJE recordation. Hire an accounts receivables specialist

2018-001

GSA_MIGRATION

GSA_MIGRATION

2017-001

GSA_MIGRATION

GSA_MIGRATION

2016-002

GSA_MIGRATION

GSA_MIGRATION

2015-004