TAMPA CROSSROADS, INC

Section I - Summary of Auditor?s Results Financial Statements Type of auditor?s report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? _____ Yes __X__ No Significant deficiency(ies) identified? _____ Yes __X__ None reported Noncompliance material to financial statements noted? _____ Yes __X__ No Federal Awards Type of auditor?s report issued on compliance for major federal programs: Unmodified Internal control over major federal programs: Material weakness(es) identified? __X__ Yes _____ No Significant deficiency(ies) identified? _____ Yes __X__ None reported Any audit findings disclosed that are required to be reported in accordance with Section 2 CFR 200.516(a)? __X__ Yes _____ No Identification of major federal programs: CFDA Number Name of Federal Program or Cluster 14.218 Community Development Block Grants/Entitlement Grants 14.256 Community Development Block Grants/Entitlement Grants Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? __X__ Yes _____ No Section II - Financial Statement Findings None reported. Section III - Federal Award Findings and Questioned Costs U.S. Department of Housing and Urban Development Finding Number 2019-01 Entity Tampa Crossroads, Inc. CFDA Number/Title 14.218 Community Development Block grants/Entitlement Grants 14.256 Community Development Block grants/Entitlement Grants Contract Number N/A Compliance Requirement Allowable activities Tampa Crossroads, Inc. Schedule of Findings and Questioned Costs Year Ended June 30, 2019 Page 24 Questioned Costs No questioned costs Repeat Finding No Criteria Uniform Guidance requires the use of record retention procedures that conform to applicable federal laws, regulations, and standards identified in 2 CFR Section 200.333 - Retention requirements for records. Uniform Guidance states that financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient. Additionally, specific program requirements state that the recipient must maintain records with regard to eligibility, national objectives, financial management, citizen participation, relocation, other resources, acquisition, housing assistance to dwelling units and households, equal opportunity, environmental impact, labor standards and other requirements set forth in the program regulations. Records shall be retained for a period of four years after submission of the report in which the activity is reported as completed, except as otherwise prescribed in the regulations. Condition, Cause, and Context Record retention policies were not followed by the Organization. Three of 25 tenant files could not be located and were determined to be inadvertently shredded by an employee. Potential Effect The Organization may lack the support required by the funder and could have related funding reduced or loans rescinded. Recommendations We recommend that the Organization update and/or revise its policies and procedures policies to ensure compliance with Uniform Guidance as follows: Enhance policies, procedures, and controls around record retention to ensure proper safeguards over records and retention. Management should adhere to their retention policy, as well as the federal programs? documentation policy. Views of Responsible Officials The Organization will update and/or revise its policies and procedures regarding record retention and adherence to such policies to be in compliance with Uniform Guidance. Section IV - Other Matters No summary schedule of prior audit findings is required because there were no prior audit findings. Tampa Crossroads, Inc. Management?s Corrective Action Plan For the Fiscal Year Ended June 30, 2019 Finding Number: 2019-01 Finding: Uniform Guidance requires the use of record retention procedures that conform to applicable federal laws, regulations, and standards identified in 2 CFR Section 200.333 ? Retention requirements for records. It was determined that record retention policies were not followed by the Organization. 3 of 25 tenant files could not be located and were determined to be inadvertently shredded by an employee.

Planned Corrective Actions: The Organization plans to enhance policies, procedures, and controls around record retention to ensure proper safeguards over records and retention. Management will ensure the adherence to their retention policy, as well as the federal programs? documentation policy. For the tenant files that could not be located, management obtained the necessary information to re-create the required documentation in the file to support whether or not the tenant was eligible within the terms of the contract. In the future all files will be scanned and uploaded to the TCR Cloud Storage for access as required. A new Property Manager has been hired and will implement the policy. Anticipated Completion: November 1, 2019