Catholic Charities Archdiocese of Washington, Inc and AffiliatesNon-Profit

2024-001 Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards (SEFA)) Information on the Major Federal Programs: Department of Housing and Urban Development Federal Assistance Listing Number: 14.218 Federal Assistance Listing Name: Community Development Block Grants/Entitlement Grants Grant Number: CV-2-8 Department of Health and Human Services Federal Assistance Listing Number: 93.566 Federal Assistance Listing Name: Refugee and Entrant Assistance - State-Administered Programs Grant Number: JA-FSA-RSS-2022 Criteria: Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR part 200) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total federal awards expended for each individual Federal program. In accordance with §200.302 Financial Management, a non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal entity must provide for the following: (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.327 Financial Reporting and §200.328 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for Federally-funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets.

2023-001 Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards (SEFA)) Information on the Major Federal Program: Department of Homeland Security Federal Emergency Management Agency Federal Assistance Listing Number: 97.024 Federal Assistance Listing Name: Emergency Food and Shelter National Board Program Pass-through Awards under the Uniform Guidance Requirements: Pass-through Entity Award Name Award Period The United Way SE Family Center DC Phase 39 November 1, 2021 to April 30, 2023 The United Way SE Family Center DC ARPAR November 1, 2021 to April 30, 2023 The United Way Mont. Co Family Center Phase 39 November 1, 2021 to April 30, 2023 The United Way Mont. Co Family Center ARPAR November 1, 2021 to April 30, 2023 The United Way Parish Partners PG Co Phase 39 November 1, 2021 to April 30, 2023 The United Way Parish Partners PG Co ARPAR November 1, 2021 to April 30, 2023 The United Way Parish Partners Calvert Co ARPAR November 1, 2021 to April 30, 2023 The United Way Parish Partners Charles Co ARPAR November 1, 2021 to April 30, 2023 The United Way Angel’s Watch Charles Co ARPAR November 1, 2021 to April 30, 2023 The United Way St. Josephine’s Shelter DC ARPAR November 1, 2021 to April 30, 2023 The United Way Adam’s Place Shelter DC ARPAR November 1, 2021 to April 30, 2023 The United Way SMFB ARPAR November 1, 2021 to April 30, 2023 The United Way SCC Food Pantry Phase 39 November 1, 2021 to April 30, 2023 The United Way SCC Food Pantry ARPAR November 1, 2021 to April 30, 2023 The United Way Phase HR22 April 13, 2022 to July 7, 2022 Criteria: Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR part 200) Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section §200.502 Basis for determining Federal awards expended.” The schedule must provide total Federal awards expended for each individual Federal program. In accordance with §200.302 Financial Management, a non-Federal entity's financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. The financial management system of each non-Federal entity must provide for the following: (1) Identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §200.327 Financial Reporting and §200.328 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for Federally-funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets.

2023-002 Internal Control Over Compliance and Compliance – Eligibility Information on the Major Federal Program: Department of Homeland Security: Federal Emergency Management Agency Federal assistance listing number: 97.024 Federal assistance listing name: Emergency Food and Shelter National Board Program Pass-through Awards under the Uniform Guidance Requirements: Pass-through Entity Award Number Award Period The United Way SE Family Center DC Phase 39 November 1, 2021 to April 30, 2023 The United Way SE Family Center DC ARPAR November 1, 2021 to April 30, 2023 The United Way Mont. Co Family Center Phase 39 November 1, 2021 to April 30, 2023 The United Way Mont. Co Family Center ARPAR November 1, 2021 to April 30, 2023 The United Way Parish Partners PG Co Phase 39 November 1, 2021 to April 30, 2023 The United Way Parish Partners PG Co ARPAR November 1, 2021 to April 30, 2023 The United Way Parish Partners Calvert Co ARPAR November 1, 2021 to April 30, 2023 The United Way Parish Partners Charles Co ARPAR November 1, 2021 to April 30, 2023 The United Way Angel’s Watch Charles Co ARPAR November 1, 2021 to April 30, 2023 The United Way St. Josephine’s Shelter DC ARPAR November 1, 2021 to April 30, 2023 The United Way Adam’s Place Shelter DC ARPAR November 1, 2021 to April 30, 2023 The United Way SMFB ARPAR November 1, 2021 to April 30, 2023 The United Way SCC Food Pantry Phase 39 November 1, 2021 to April 30, 2023 The United Way SCC Food Pantry ARPAR November 1, 2021 to April 30, 2023 The United Way Phase HR22 April 13, 2022 to July 7, 2022 Criteria or Specific Requirement: In accordance with §200.303(a), Internal Controls, a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The specific requirements for eligibility are unique to each Federal program and are found in the statutes, regulations, and the terms and conditions of the Federal award pertaining to the program. The program’s provision of emergency financial assistance is intended to maintain beneficiary’s housing or utility for up to 90 days. For the Emergency Food and Shelter National Board Program, individuals are eligible for assistance based on the criteria set by the individual Local Resource Organization (LRO). §200.300, Statutory and National Policy Requirements, a non-Federal entity is responsible for complying with all requirements of the Federal award

2022-002 Internal Control over Compliance and Compliance ? Special Tests and Provisions Information of the Federal Program: United States Department of Housing and Urban Development AL Number: 14.267 AL Name: Continuum of Care Program Grant Award Number under the Uniform Guidance Requirements: Direct Award Number Award Period MD0147L3B142013 July 1, 2021 - June 30, 2022 MD0408L3G011902 October 1, 2020 - September 30, 2021 MD0408L3G012003 October 1, 2021 - September 30, 2022 Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Per 24 CFR section 578.49(b)(1), ?Where grants are used to pay for rent for all or a part of a structure, the rent paid must be reasonable in relation to rents being charged in the area for comparable space. In addition, the rent may not exceed rents currently being charged by the same owner for comparable unassisted space.? Per 24 CFR sections 578.49(b)(2) and 578.51(g) and (j), ?Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Grant funds in an amount up to one month?s rent may be used to pay the non-recipient landlord for any damages to leased units by homeless participants.? Condition: For 26 of 40 rental payments tested, the HUD Fair Market Rent (FMR) Documentation System data for the appropriate rental locations and rental periods was printed by Catholic Charities prior to paying the rent; however, neither the comparison between the actual monthly rental payment and the FMR, nor the review and approval of the control was documented. Additionally, no documentation was available to support controls over rent reasonableness compared to the rents being charged in the area for comparable space, rent reasonableness compared to rents currently being charged by the same owner for comparable unassisted space, or rent reasonableness of individual housing units in relation to rents being charged for comparable units taking into account relevant features. For 14 of 40 rental payments tested, the Rental Reasonableness Checklist and Certification to evidence the comparison between the actual monthly rental payment and the FMR as well as the rent reasonableness compared to the rents being charged in the area for comparable space was completed, however evidence of approval was not present. Additionally, no documentation was available to support controls over rent reasonableness compared to rents currently being charged by the same owner for comparable unassisted space or rent reasonableness of individual housing units in relation to rents being charged for comparable units taking into account relevant features. For 5 of 40 rental payments tested, the rent exceeds the HUD-determined fair market rents for the period for the zip code of the rental unit. The documented control over the FMR with the use of the Rent Reasonableness Checklist and Certification was not operating effectively as the checklist documented that the rent paid exceeded the FMR. Cause: Catholic Charities? controls, as designed, did not identify the instances identified in the condition above where HUD-determined fair market rents were exceeded. Effect: Insufficient or lack of review of the Rent Reasonableness Checklist and Certification resulted in rent reasonableness controls not operating effectively to identify rental amounts in excess of HUD-determined fair market rents. Failure to appropriately report expenditures on the SEFA could result in audit adjustments. Questioned Costs: There are $471 questioned costs related to the items described above. The five (5) rental assistance expenditures of $6,809 exceeded the HUD-determined fair market rents of $6,338 by $471. Of the 40 samples, the total charges on the five (5) rental assistance expenditures were $6,809 of the $44,364 total rent charges tested. The total rental assistance expenses during the year ended June 30, 2022 totaled $357,867. Context: The conditions outlined above are based on our testing of Catholic Charities? major programs and our overall testing of the accuracy of the SEFA. The nature of these findings is detailed in the condition section above. Any samples selected as part of the overall SEFA review and testing of expenses were performed using a non-statistical method. Repeat Finding: This is a repeat finding of finding number 2021-005. Recommendation: We recommend that Catholic Charities enforce existing policies and procedures to ensure the FMR is formally reconciled to the rent location data to evidence consideration of the required market data. Further, the Rent Reasonableness Checklist and Certification should have evidence of review and approval to substantiate adequate review has been performed. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.

2021-003 Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of Housing and Urban Development AL Number: 14.267 AL Name: Continuum of Care Program Grant Award Numbers under the Uniform Guidance Requirements: Direct Award Number Award Period MD0147L3B081912 July 1, 2020 - June 30, 2021 DC0082L3G001803 December 1, 2019 - November 30, 2020 MD0408L3G011801 October 1, 2019 - September 30, 2020 MD0408L3G011902 October 1, 2020 - September 30, 2021 Pass-through Awards under the Uniform Guidance Requirements: Pass-through Entity Award Number Award Period The Community Partnership for the Prevention of Homelessness DC0085L3G001803 January 1, 2020 - December 31, 2020 The Community Partnership for the Prevention of Homelessness DC0051L3G001811 October 1, 2019 - September 30, 2020 The Community Partnership for the Prevention of Homelessness DC0036L3G001811 October 1, 2019 - September 30, 2020 The Community Partnership for the Prevention of Homelessness DC0036L3G001912 October 1, 2020 - September 30, 2021 The Community Partnership for the Prevention of Homelessness DC0064L3G001810 December 1, 2019 - November 30, 2020 The Community Partnership for the Prevention of Homelessness DC0064L3G001911 December 1, 2020 - November 30, 2021 United States Department of Housing and Urban Development AL Number: 14.231 AL Name: Emergency Solutions Grants Program Pass-through Award under the Uniform Guidance Requirements: Pass-through Entity Award Number Award Period Three Oaks Center, Inc. None - HSP July 1, 2020 - December 31, 2021 Three Oaks Center, Inc. None ? HSP ESG October 1, 2020 ? September 30, 2022 Criteria: Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR part 200) Section ?200.510(b) states in part: ?The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section ?200.502 Basis for determining Federal awards expended.? The schedule must provide total Federal awards expended for each individual Federal program. In accordance with ?200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. The financial management system of each non-federal entity must provide for the following: (1) Identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each federal award or program in accordance with the reporting requirements set forth in ?200.327 Financial Reporting and ?200.328 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for federally-funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets. Condition: The SEFA review and approval process did not detect and correct the following errors that were identified during the audit procedures performed: During the reconciliation of U.S. government revenue to federal expenditures reported on the SEFA, we noted that on the SEFA originally prepared by management, there was one (1) award with state funded expenditures totaling $84,497 which was required to be removed from the SEFA to ensure accurate reporting of federal expenditures. Additionally, on the original SEFA provided by management, there were two (2) awards that were missing for which federal expenditures incurred were $137,691. The SEFA, as presented, has been corrected for these errors. The modifications did not impact major program determination. Questioned Costs: There are no questioned costs related to the items described above. Context: The conditions outlined above are based on our testing of Catholic Charities? major programs and our overall testing of the accuracy of the SEFA. The nature of these findings is detailed in the condition section above. Any samples selected as part of the overall SEFA review and testing of expenses were performed using a non-statistical method. Cause: The internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the accounting and finance department responsible for the SEFA. Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments. Repeat Finding: This is a repeat finding of finding 2020-002. Recommendation: We recommend management address the control considerations to ensure the documented policies and procedures can be performed as prescribed. This will ensure that Federal funds are reported accurately on the SEFA. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.

2021-004 Internal Control over Compliance and Compliance ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance Information on the Federal Program: Direct Award Number Award Period DC0082L3G001803 December 1, 2019 - November 30, 2020 Pass-through Entity Award Number Award Period Three Oaks Center, Inc. None ? HSP ESG October 1, 2020 ? September 30, 2022 Criteria: 2 CFR part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, section 200.309 charges to federal awards incurred during the period of performance must be allowable. Section 200.430(i) notes that charges for salaries and wages, must be based on records that accurately reflect the work performed. Section 200.430(i) of 2 CFR part 200 also states that the records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Section 200.430(i)(ii) and (iii) further states that the records must be incorporated into the official records of the non-federal entity and reasonably reflect the total activity for which the employee is compensated by the non-federal entity, not exceeding 100% of compensated activities. The allowability and appropriate period of performance of compensation for personal services is determined by 1) authorization of time worked as indicated by approval of the supervisor on the timesheet and 2) authorization of the salary for the employee. Condition: CFDA #14.267 - For three (3) out of the 22 timesheets tested relating to fringe expenses charged as direct expenses to the program, the following was identified: ? three (3) timesheets in which the timesheet was signed as approved by employee prior to the end of the time period. CFDA # 14.231 - For three (3) out of the 71 timesheets tested, the following instance of employee approved timesheet submission to supervisors for review and approval was identified: ? one (1) timesheet in which the timesheet was signed by employee, but there was no evidence of supervisor review/approval. ? two (2) timesheets in which the timesheet was not signed off as approved and submitted by the employee nor signed off as reviewed and approved by the supervisor. Questioned Costs: There are undeterminable questioned costs related to the items described above. Of the 22 samples for CFDA #14.267, the total charges on the three (3) timesheets to the grant was $340 of the $1,788 total grant charges tested. The total direct fringe expenses during the year ended June 30, 2021 amounted to $108,328. Of the 6 samples for CFDA #14.231, the total charges on the three (3) timesheets to the grant was $408 of the $23,505 total grant charges tested. The total payroll expenses during the year ended June 30, 2021 amounted to $96,562. Context: The conditions outlined above are based on our testing of the Organization?s major programs and our overall testing of the accuracy of the SEFA. The nature of these findings is detailed in the condition section above. Any samples selected as part of the overall SEFA review and testing of expenses were performed using a non-statistical method. Cause: The supervisor did not appropriately review the timesheet submitted by the employee or the supervisor?s review failed to identify that there were deficiencies with the design and implementation of the control over the review and approval of timesheets. Effect: Insufficient or lack of review of the time sheet resulted in timesheet controls not operating effectively to accurately report time worked on the programs. Failure to accurately report time and thus expenditures on the SEFA could result in audit adjustments. Repeat Finding: This is a repeat finding of finding number 2020-003. Recommendation: We recommend that the supervisors ensure that appropriate timesheet review is performed and that program employees and supervisors comply with the documented policies. We recommend management address the control considerations to ensure the documented policies and procedures can be performed as proscribed. This will ensure that Federal funds are reported accurately on the SEFA. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.

2021-005 Internal Control over Compliance and Compliance ? Special Tests and Provisions Information on the Federal Program: Direct Award Number Award Period MD0147L3B081912 July 1, 2020 - June 30, 2021 Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Per 24 CFR section 578.49(b)(1), ?Where grants are used to pay for rent for all or a part of a structure, the rent paid must be reasonable in relation to rents being charged in the area for comparable space. In addition, the rent may not exceed rents currently being charged by the same owner for comparable unassisted space.? Per 24 CFR sections 578.49(b)(2) and 578.51(g) and (j), ?Where grants are used to pay rent for individual housing units, the rent paid must be reasonable in relation to rents being charged for comparable units taking into account relevant features. In addition, the rents may not exceed rents currently being charged by the same owner for comparable unassisted units, and the portion of rents paid with grant funds may not exceed HUD-determined fair market rents. Grant funds in an amount up to one month?s rent may be used to pay the non-recipient landlord for any damages to leased units by homeless participants.? Condition: For two (2) out of the 25 rental payments tested, the Rental Reasonableness Checklist and Certification used by the Organization was completed and signed as reviewed and approved even though the rent for the client exceeds the HUD-determined fair market rents for the period for the zip code rented. The control over the HUD-determined fair market rents with the use of the "Rent Reasonableness Checklist and Certification" was not operating effectively as the checklist was signed as approved even though the documentation in the checklist showed that the rent paid exceeded the HUD-determined fair market rents. Questioned Costs: There are $74 questioned costs related to the items described above. The two (2) rental assistance expenditures of $2,278 exceeded the HUD-determined fair market rents of $2,204 by $74. Of the 25 samples, the total charges on the two (2) rental assistance expenditures were $2,278 of the $29,378 total rent charges tested. The total rental assistance expenses during FY 2021 amounted to $513,663. Context: The conditions outlined above are based on our testing of the Organization?s major programs and our overall testing of the accuracy of the SEFA. The nature of these findings is detailed in the condition section above. Any samples selected as part of the overall SEFA review and testing of expenses were performed using a non-statistical method. Cause: The Organization did not appropriately review the Rent Reasonableness Checklist and Certification or the review failed to identify that there were rental assistance amounts in excess of HUD-determined fair market rents charged to the major program. Effect: Insufficient or lack of review of the Rent Reasonableness Checklist and Certification resulted in rent reasonableness controls not operating effectively to appropriately identify rental amounts for Organization clients in need of rental assistance in excess of HUD-determined fair market rents. Failure to appropriately report expenditures on the SEFA could result in audit adjustments. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Organization enforce existing policies and procedures and implement additional policies and procedures for maintaining and monitoring rental reasonableness documentation to ensure compliance with HUD-determined fair market rents requirements. Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.

2020-002 Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards)Information on the Federal Program:United States Department of Housing and Urban DevelopmentCFDA Number: 14.267CFDA Name: Continuum of Care ProgramGrant Award Numbers under the Uniform Guidance Requirements:Direct Award Number Award PeriodMD0147L3B081811 July 1, 2019 - June 30, 2020MD0149L3B081811 May 1, 2019 - April 30, 2020DC0082L3G001702 December 1, 2018 - November 30, 2019DC0082L3G001803 December 1, 2019 - November 30, 2020MD0408L3G011700 October 1, 2018 - September 30, 2019MD0408L3G011801 October 1, 2019 - September 30, 2020Pass-through Awards under the Uniform Guidance Requirements:Pass-through Entity Award Number Award PeriodThe Community Partnership for the Prevention of Homelessness DC0051L3G001710 October 1, 2018 - September 30, 2019The Community Partnership for the Prevention of Homelessness DC0051L3G001811 October 1, 2019 - September 30, 2020The Community Partnership for the Prevention of Homelessness DC0036L3G001710 October 1, 2018 - September 30, 2019The Community Partnership for the Prevention of Homelessness DC0036L3G001811 October 1, 2019 - September 30, 2020The Community Partnership for the Prevention of Homelessness DC0064L3G001709 December 1, 2018 - November 30, 2019The Community Partnership for the Prevention of Homelessness DC0064L3G001800December 1, 2019 - November 30, 2020The Community Partnership for the Prevention of Homelessness DC0085L3G001702 January 1, 2019 - December 31, 2019The Community Partnership for the Prevention of Homelessness DC0085L3G001803 January 1, 2020 - December 31, 2020United States Department of Health and Human ServicesCFDA Number: 93.958CFDA Name: Block Grants for Community Mental Health ServicesGrant Award Numbers under the Uniform Guidance Requirements:Direct Award Number Award PeriodNone NonePass-through Award under the Uniform Guidance Requirements:Pass-through Entity Award Number Award PeriodMontgomery County Maryland 1059878 July 1, 2017 - June 30, 2020Criteria: Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR part 200) Section ?200.510(b) states in part: ?The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section ?200.502 Basis for determining Federal awards expended.? The schedule must provide total Federal awards expended for each individual Federal program.In accordance with ?200.302 Financial Management, a non-federal entity's financial management systems, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. The financial management system of each non-federal entity must provide for the following:(1) Identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received.(2) Accurate, current, and complete disclosure of the financial results of each federal award or program in accordance with the reporting requirements set forth in ?200.327 Financial Reporting and ?200.328 Monitoring and Reporting Program Performance.(3) Records that identify adequately the source and application of funds for federally-funded activities.(4) Effective control over, and accountability for, all funds, property, and other assets.Condition: The SEFA review and approval process did not detect and correct the following errors that were identified during the audit procedures performed:During the reconciliation of U.S. government revenue to federal expenditures reported on the SEFA, we noted that the SEFA originally prepared by management reported expenditures when billed instead of when incurred on the accrual basis of accounting. Expenditures have been elected by Catholic Charities to be recorded on the accrual basis of accounting; as such expenditures are to be included on the SEFA even if not yet billed or reimbursed by the respective federal awarding agency. The schedule of expenditures of federal awards, as reported in these consolidated financial statements, was adjusted for these errors. On the original SEFA provided by management, there were five (5) awards with expenditures totaling $47,275 related to expenditures incurred in the previous year which have remained in the SEFA as presented to ensure complete reporting even though the costs were incurred in the prior year. Additionally, on the original SEFA provided by management, there were four (4) awards that were missing expenditures incurred but not yet billed for $42,113. These expenditures and awards were added to the SEFA as presented in these consolidated financial statements.Questioned Costs: There are no questioned costs related to the items described above.Context: The conditions outlined above are based on our testing of Catholic Charities? major programs and our overall testing of the accuracy of the SEFA. The nature of these findings is detailed in the condition section above. Any samples selected as part of the overall SEFA review and testing of expenses were performed using a non-statistical method.Cause: The internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed due to personnel changes in the accounting and finance department responsible for the SEFA.Effect: The SEFA provided for the audit was inaccurate for the reasons outlined in the condition section above. Failure to accurately report expenditures and programs on the SEFA result in audit adjustments.Repeat Finding: This is not a repeat finding.Recommendation: We recommend management address the control considerations to ensure the documented policies and procedures can be performed as prescribed. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.

2020-003 Internal Control over Compliance and Compliance Period of PerformanceInformation on the Federal Program:United States Department of Housing and Urban DevelopmentCFDA Number: 14.267CFDA Name: Continuum of Care ProgramGrant Award Numbers under the Uniform Guidance Requirements:Direct Award Number Award PeriodMD0147L3B081811 July 1, 2019 - June 30, 2020MD0149L3B081811 May 1, 2019 - April 30, 2020DC0082L3G001702 December 1, 2018 - November 30, 2019DC0082L3G001803 December 1, 2019 - November 30, 2020MD0408L3G011700 October 1, 2018 - September 30, 2019MD0408L3G011801 October 1, 2019 - September 30, 2020Pass-through Awards under the Uniform Guidance Requirements:Pass-through Entity Award Number Award PeriodThe Community Partnership for the Prevention of Homelessness DC0051L3G001710 October 1, 2018 - September 30, 2019The Community Partnership for the Prevention of Homelessness DC0051L3G001811 October 1, 2019 - September 30, 2020The Community Partnership for the Prevention of Homelessness DC0036L3G001710 October 1, 2018 - September 30, 2019The Community Partnership for the Prevention of Homelessness DC0036L3G001811 October 1, 2019 - September 30, 2020The Community Partnership for the Prevention of Homelessness DC0064L3G001709 December 1, 2018 - November 30, 2019The Community Partnership for the Prevention of Homelessness DC0064L3G001800December 1, 2019 - November 30, 2020The Community Partnership for the Prevention of Homelessness DC0085L3G001702 January 1, 2019 - December 31, 2019The Community Partnership for the Prevention of Homelessness DC0085L3G001803 January 1, 2020 - December 31, 2020United States Department of Health and Human ServicesCFDA Number: 93.958CFDA Name: Transitional Sheltered Housing/Homeless Men/Federal Mental Health Block GrantGrant Award Numbers under the Uniform Guidance Requirements:Direct Award Number Award PeriodNone NonePass-through Award under the Uniform Guidance Requirements:Pass-through Entity Award Number Award PeriodMontgomery County Maryland 1059878 July 1, 2017 through June 30, 2020Criteria: 2 CFR part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, section 200.309 charges to federal awards incurred during the period of performance must be allowable. Section 200.430(i) notes that charges for salaries and wages, must be based on records that accurately reflect the work performed. Section 200.430(i) of 2 CFR part 200 also states that the records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Section 200.430(i)(ii) and (iii) further states that the records must be incorporated in to the official records of the non-federal entity and reasonably reflect the total activity for which the employee is compensated by the non-federal entity, not exceeding 100% of compensated activities.The allowability and appropriate period of performance of compensation for personal services is determined by 1) authorization of time worked as indicated by approval of the supervisor on the timesheet and 2) authorization of the salary for the employee.Condition: CFDA #14.267 - For six (6) out of the 44 timesheets tested, the following instance of employee approved timesheet submission to supervisors for review and approval was identified:? one (1) timesheet in which the timesheet was signed by employee, but there was no evidence of supervisor review/approval.? two (2) timesheets in which the timesheet was reviewed and approved by the supervisor, but it was not signed off as approved and submitted by the employee.? three (3) timesheets in which the timesheet was signed by employee prior to the end of the time period.CFDA # 93.958 - For nine (9) out of the 30 timesheets tested, the following instance of employee approved timesheet submission to supervisors for review and approval was identified:? one (1) timesheet in which the timesheet was signed by employee, but there was no evidence of supervisor review/approval.? three (3) timesheets in which the timesheet was reviewed and approved by the supervisor, but it was not signed off as approved and submitted by the employee.? five (5) timesheets in which the timesheet was signed by employee prior to the end of the time period.Questioned Costs: There are undeterminable questioned costs related to the items described above.Of the 44 samples for CFDA #14.267, the total charges on the six (6) timesheets to the grant was $3,994 of the $39,992 total grant charges tested. The total payroll expenses during FY 2020 amounted to $632,728.Of the 30 samples for CFDA #93.958, the total charges on the nine (9) timesheets to the grant was $10,672 of the $32,263 total grant charges tested. The total payroll expenses during FY 2020 amounted to $191,902.Context: The conditions outlined above are based on our testing of the Organization?s major programs and our overall testing of the accuracy of the SEFA. The nature of these findings is detailed in the condition section above. Any samples selected as part of the overall SEFA review and testing of expenses were performed using a non-statistical method.Cause: The supervisor did not appropriately review the timesheet submitted by the employee or the supervisor?s review failed to identify that there were deficiencies with the design and implementation of the control over the review and approval of timesheets.Effect: Insufficient or lack of review of the time sheet resulted in timesheet controls not operating effectively to accurately report time worked on the programs. Failure to accurately report time and thus expenditures on the SEFA could result in audit adjustments.Repeat Finding: This is a repeat finding of finding number 2019-001.Recommendation: We recommend that the supervisors ensure that appropriate timesheet review is carried out and that program employees and supervisors are aware of the appropriate procedures. We recommend management address the control considerations to ensure the documented policies and procedures can be performed as prescribed. This will ensure that Federal funds are reported accurately on the SEFA.Views of Responsible Officials: Management agrees with the finding and recommendations set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in prescribed internal controls.

Findings and Questioned Costs Relating to Federal Awards 2019-001: Period of Performance Federal Agency: Department of Housing and Urban Development Federal Program: Continuum of Care Federal Award Numbers and Years: Grant # DC0051L3G001609: 10/1/2017 ? 9/30/2018 Grant # DC0051L3G001609: 10/1/2018 ? 9/30/2019 Grant # DC0036L3G001609: 10/1/2017 ? 9/30/2018 Grant # DC0036L3G001710: 10/1/2018 ? 9/30/2019 Grant #MD0149L3B081710: 5/1/2018 ? 4/30/2019 Grant #MD0149L3B081811: 5/1/2019 ? 4/30/2020 Grant # DC0064L3G001608: 12/1/2017 ? 11/30/2018 Grant # DC0064L3G001709: 12/1/2018 ? 11/30/2019 Grant #MD0147L3B081710: 7/1/2018 - 6/30/2019 Grant #DC0082L3G001601: 12/1/2017 ? 11/30/2018 Grant #DC0082L3G001702: 12/1/2018 ? 11/30/2019 Grant #DC0085L3G001601: 1/1/2018 -12/31/2018 Grant #DC0085L3G001702: 1/1/2019 ? 12/31/2019 Grant #MD0408L3G011700: 10/1/2018 ? 9/30/2019 CFDA Number: 14.267 Criteria Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR part 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, section 200.309 charges to federal awards incurred during the period of performance must be allowable. Section 200.430(i) notes that charges for salaries and wages, must be based on records that accurately reflect the work performed. Section 200.430(i) of 2 CFR part 200 also states that the records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Section 200.430(i)(ii) and (iii) further states that the records must be incorporated in to the official records of the non-federal entity and reasonably reflect the total activity for which the employee is compensated by the non-federal entity, not exceeding 100% of compensated activities. The allowability and appropriate period of performance of compensation for personal services is determined by 1) authorization of time worked as indicated by approval of the supervisor on the timesheet and 2) authorization of the salary for the employee. Condition For one out of the 51 timesheets tested, the following instance was identified: > one timesheet in which personal leave was not appropriately charged to the grant resulting an overstatement in amount charged to the grant. Of the 51 samples, the total charges on the one timesheet to the grant was $1,627 of the $62,691 total grant charges tested . The total payroll expenses during FY 2019 amounted to $621,071. Cause The supervisor did not appropriately review the timesheet submitted by the employee. The supervisor?s review failed to identify that there were leave hours that were not appropriately identified in the timesheet. Effect Insufficient or lack of review of the time sheet resulted in an overcharge to the grant due to the charge being calculated using the wrong rate per hour and this charge was billed to the applicable granting agency. Questioned Costs The total overcharge is approximately $38.00. There are no reportable questioned costs as sufficient evidence was obtained that the only overcharge was related to the timesheet in question and was repaid by Catholic Charities in December 2019. Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend that the supervisors ensure that appropriate timesheet review is carried out and that supervisors are aware of the appropriate time codes to be charged. Views of Responsible Officials During fiscal year 2020, management will conduct additional training on the importance of timesheet reviews and approvals. A formal quarterly review procedure will be conducted to verify the appropriate time is billed to the respective projects.

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