COMMUNITY CRISIS SERVICES, INC.

Condition: The Organization did not meet cash management compliance federal requirements. Criteria: When Organizations are funded on a reimbursement basis, program costs must be paid for by the Organization?s funds before reimbursement is requested from the federal government. During our testing, we noted that the Organization had requested three invoices to be reimbursed prior to payment by the Organization in violation of cash management federal requirements. Cause: The Organization was unaware of appropriate controls to put in place to ensure invoices are paid prior to requesting reimbursement. Effect: The Organization requested reimbursement for invoices prior to paying for them. Recommendation: We recommend management use more detailed monthly schedules for federal grants that include information such as check dates to ensure that invoices are paid by the Organization prior to being included on the monthly reimbursement requests. Views of Responsible Officials and Corrective Action Plan: The Organization agrees with the finding and have implemented procedures to ensure that the Organization is following cash management compliance federal requirements.

Condition: The Schedule of Expenditures of Federal Awards (SEFA) prepared by the Organization was not complete and accurate. Criteria: The SEFA is a supplemental schedule to the financial statements that an organization is required to produce when it is subject to the Uniform Guidance. The Uniform Guidance requirement is triggered when the federal expenditures reported on the SEFA exceed $750,000 during the Organization?s fiscal year. It is the Organization?s responsibility to prepare a complete and accurate SEFA, which is a key component of the reporting requirements under the Uniform Guidance. Cause: The Organization used wrong reports to determine amounts that needed to be reflected on the SEFA and was unaware that some grant expenditures qualified as federal expenditures. Effect: The SEFA for the year ended June 30, 2021 was understated. Recommendation: We recommend that the Organization prepare the SEFA at the end of each fiscal year and implement controls to ensure the schedule has been prepared accurately and is complete. Views of Responsible Officials and Corrective Action Plan: The Organization agrees with the finding and the recommended procedures.

Condition: The Organization had no documentation showing multiple price or rate quotations were obtained for one of their procurements which is in violation of the federal procurement policy. Criteria: The Organization must follow the procurement standards set out at 2 CFR Sections 200.318 through 200.326. The Organization must follow their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR Part 200. Cause: The procurement agreement was entered into several years ago by an Organization that previously ran the program. In the current year the Organization honored and paid for that procurement with federal funds. The Organization has been unable to document if the proper procurement process was followed when the purchase agreement was entered into. Effect: The Organization did not have documentation showing the procurement policy was followed. Recommendation: We recommend the Organization review all procurement agreements to ensure there is documentation showing compliance with federal procurement policy requirements. Views of Responsible Officials and Corrective Action Plan: The Organization agrees with the finding and the recommended procedures have been implemented.

Condition: During our audit, we noted that the Organization?s policy is that invoices are provided to the Executive Director for review (including a review of the allowability of the cost and activity for the grant the invoice is being charged to, if applicable). Once reviewed, the Executive Director will sign/initial the invoice to indicate their approval. However, during our audit we noted that several invoices tested in our sample did not have an initial/signature showing approval by the Executive Director. Criteria: Internal controls are designed to safeguard assets and help prevent or detect losses from employee dishonesty or error. A fundamental concept in a good system of internal control is the segregation of duties. While adequate segregation of duties can be difficult to accomplish within a small organization, management should be mindful of areas that may be enhanced, and to maintain documentation of the reviews and approval process. Cause: Segregation of duties can be difficult to accomplish within a small organization and the Organization was unaware of appropriate controls to put in place to enhance the review process. Effect: The Organization did not have the appropriate documentation to substantiate the review and approval process of some invoices. Recommendation: We recommend that the Organization develop procedures to ensure more and consistent compliance with the Organization?s policy of initialing/signing invoices. Views of Responsible Officials and Corrective Action Plan: The Organization agrees with the finding and have implemented procedures to ensure that the Organization?s policy is being followed consistently.

Condition: During our audit we noted that the SEFA prepared by the Organization was not complete and accurate. Criteria: The Schedule of Expenditures of Federal Awards (SEFA) is a supplemental schedule to the financial statements that an organization is required to produce when it is subject to the single audit requirement. The single audit requirement is triggered when the federal expenditures reported on the SEFA exceed $750,000 during the Organization?s year. It is the Organization?s responsibility to prepare a complete and accurate SEFA, which is a key component of the reporting requirements under the Uniform Guidance. Cause: This is the first year of the Single Audit, the Organization was unaware of the correct format and information needed for the SEFA. Effect: The SEFA for the year ended June 30, 2020 was prepared incorrectly. Recommendation: We recommend that the Organization prepare the SEFA at the end of each year and implement controls to ensure the schedule has been prepared accurately and is complete. Views of Responsible Officials and Corrective Action Plan: Since this was the Organization?s first Single Audit, we did not know how to properly prepare the SEFA. The Organization agrees with the finding and the recommended procedures and will prepare the SEFA.

Condition: During our audit we noted that the Organization?s procurement procedures do not meet the standards set out in 2 CFR part 200. Criteria: The Organization must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. The Organization must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR part 200. Cause: The Organization was unaware of procurement standards identified in 2 CFR part 200. Effect: The Organization did not have a procurement policy that meets federal standards. Recommendation: We recommend that the Organization adopt a procurement policy that meets the standards set out in 2 CFR part 200. Views of Responsible Officials and Corrective Action Plan: The Organization agrees with the finding and the recommended procedures have been implemented.

Condition: During our audit we noted that the Organization did not meet the matching requirement for one of the grant awards tested as of June 30, 2020. COVID-19 Emergency Relief (VOCA-2017-0144) award requires cash match to equal 20% of the total project expenditures throughout the life of the award. On the June 30, 2020 reimbursement request, the cash match for this award was only 16% ($5,000 cash match compared to 31,360 total expenditure). Criteria: The Organization must follow certain matching requirements noted in the grant award agreement. Cause: The Organization did not have the appropriate controls in place to ensure matching requirements have been met before requesting reimbursement from the grantor. Effect: The Organization was not in compliance with matching requirement for award COVID-19 Emergency Relief (VOCA-2017-0144). Recommendation: We recommend that the Organization adopt controls to ensure matching requirements have been met before requesting reimbursement from the grantor. Views of Responsible Officials and Corrective Action Plan: The