90WORKS, INCNon-Profit

Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Key controls should be clearly documented as they occur throughout the year. The organization should have key controls in place requiring that all journal entries be reviewed and approved throughout the year. Entries should be reviewed by someone with the proper skills, knowledge, and experience to know if the journal entries are correct Condition/Context: It was noted during the audit that journal entries are not being reviewed and approved by someone who has access to and is reviewing all of the underlying information to determine if the journal entry is accurate and reasonable. Support for journal entries was also unable to be provided for the entries we were testing. Cause: The cause of this issue is the absence of a formalized and consistently applied journal entry review process related to all grant program. The organization lacks clear procedures to ensure that all journal entries are properly reviewed, approved, and documented before posting. Effect: The lack of a formal review process for journal entries increases the risk of errors or misstatements in the financial records of the SSVF program. Without proper oversight, there is also a heightened risk of misclassification or improper allocation of expenses, which could lead to financial discrepancies or noncompliance with federal regulations, potentially leading to disallowed costs or inaccuracies in reporting the use of federal funds. Recommendation: We recommend that the organization implement a formal journal entry review process to ensure that all journal entries related to all programs are reviewed and approved by authorized personnel before being posted. The process should include clear documentation of the review and approval steps to maintain the integrity and accuracy of the financial records. Repeat Finding: This is not a repeat finding. Corrective Action Plan (CAP) Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to Finding: In response to the finding, the organization will establish and implement a formal journal entry review process. All journal entries will be reviewed and approved by authorized personnel before being posted to the financial system. Additionally, clear documentation of the review and approval process will be maintained to ensure accuracy and compliance. Official Responsible for Ensuring CAP: The Interim ED will be responsible for overseeing the implementation of corrective actions. Planned Completion Date for CAP: The planned completion date is June 30, 2025. Plan to Monitor Completion of CAP: The Board of Directors will monitor the completion of the CAP through reviews of journal entries to ensure the review process is being followed and all necessary documentation is maintained.

Federal Agency: U.S. Department of Veterans Affairs Federal Program Name: VA Supportive Services for Veteran Families (SSVF) Assistance Listing Number: 64.033 Federal Award Identification Number: 20-ZZ-026 Award Period: 10/01/2023 – 09/30/2024 Type of Finding: Material Weakness in Internal Control over Compliance Compliance Requirement: Allowable Costs Criteria or Specific Requirement: Payment of SSVF grant funds up to the amount specified in the SSVF grant agreement will be made only for appropriately documented eligible expenses that are allowable, allocable, and reasonable costs of operating a program under the Supportive Services grant. Eligible expenses must be in accordance with the applicable Federal Cost Principles set forth in OMB Circular A- 122, Cost Principles for Non-Profit Organizations, codified at 2 CFR Part 235, 2 CFR 200 Subpart E Cost Principles. Additionally, expenses must be eligible per the grantee’s approved SSVF budget. Condition/Context: During the course of the audit and review of the SSVF monitoring report there were identified expenses that related to travel and development of an application. There is insufficient documentation to verify the allowability, reasonableness, and allocability of these expenses. Additionally, there was no clear review process for administrative expenses to ensure that they were reasonable and allowable under federal guidelines. Cause: The internal controls related to the monitoring and approval of administrative expenses are insufficient, leading to potential non-compliance with federal requirements. The organization has not implemented a systematic review and approval process for these expenses, leading to inadequate documentation and non-compliance with federal guidelines. Effect: The lack of proper oversight and documentation of administrative expenses resulted in noncompliant/ unallowable charges to the federal program, increasing the risk of questioned costs or disallowed expenditures. The failure to allocate and support administrative costs properly also hinder the program’s ability to demonstrate that funds were used effectively and in accordance with federal regulations. Additionally, disallowed costs identified during the review will be paid back with interest. Recommendation: We recommend implementing stronger controls and a formal periodic review process for administrative expenses, ensuring that all expenditures are properly documented, allocated, and compliant with federal regulations. Repeat Finding: This is not a repeat finding. Questioned Costs: $128,262Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to Finding: In response to the finding, the organization will implement a formal review and approval process for administrative expenses, enhance documentation practices, conduct regular internal audits and train staff on federal cost principles. New management acknowledges that intentional collusion and failure to follow procedures contributed to the issue; corrective action has been taken and safeguards are being put in place to ensure accountability and prevent recurrence. Official Responsible for Ensuring CAP: The interim ED will be responsible for overseeing the implementation of corrective actions. Planned Completion Date for CAP: The planned completion date is June 06, 2024. Plan to Monitor Completion of CAP: The board will monitor the completion of the CAP through meeting at least quarterly with Director, Finance and Compliance personnel.

Federal Agency: U.S. Department of Veterans Affairs Federal Program Name: VA Supportive Services for Veteran Families (SSVF) Assistance Listing Number: 64.033 Federal Award Identification Number: 20-ZZ-026 Award Period: 10/01/2023 – 09/30/2024 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters Compliance Requirement: Allowable Costs Criteria or Specific Requirement: The program requires that all expenses charged to the federal award are reasonable, allowable, and properly reconciled with documentation. Questioned costs must be adequately documented and reconciled to ensure they are allocable and compliant with the approved budget and travel policies. Condition/Context: During the audit, we found the organization did not comply with the budget requirements and grant requirements. The organization reimbursed an officer’s husband travel expenses which was not allowable as it did not have a direct service benefit. The reimbursement claimed was ineligible. Cause: The organization’s internal controls over travel expenditures are insufficient, and there is no systematic process in place to reconcile travel costs with the documented allowable amounts. This lack of reconciliation may lead to discrepancies between the actual travel costs and the allowable amounts. Effect: Failure to reconcile questioned costs with allowable travel costs increases the risk of improper payments and non-compliance with federal requirements. This can result in disallowed costs or adjustments to the federal program, affecting the program's financial integrity. Recommendation: We recommend implementing a process to ensure all travel costs are reconciled with the allowable amounts and that discrepancies are addressed promptly. The organization should also strengthen internal controls to verify that travel expenditures are in compliance with federal policies and properly documented. Repeat Finding: This is not a repeat finding. Questioned Costs: $647 Corrective Action Plan (CAP) Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding.Actions Planned in Response to Finding: The organization will implement a reconciliation process to verify that all travel costs align with the allowable amounts under the SSVF program’s policies. Additionally, relevant staff will be trained to ensure full compliance with federal travel regulations and documentation requirements. Official Responsible for Ensuring CAP: The Interim ED will be responsible for overseeing the implementation of corrective actions. Planned Completion Date for CAP: The planned completion date was October 10, 2024. Plan to Monitor Completion of CAP: The Board of Directors monitored the completion of the CAP as new policy at Board Meeting.

Federal Agency: U.S. Department of Veterans Affairs Federal Program Name: VA Supportive Services for Veteran Families (SSVF) Assistance Listing Number: 64.033 Federal Award Identification Number: 20-ZZ-026 Award Period: 10/01/2023 – 09/30/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Compliance Requirement: Cash Management Criteria or Specific Requirement: The organization is required to ensure that all drawdowns are properly reconciled to the financial records to maintain accurate accounting and compliance with federal regulations. This includes verifying that expenditures are correctly matched with drawdowns and that all necessary documentation supports these transactions. Condition/Context: During the audit, it was observed that the organization did not consistently reconcile drawdowns with actual expenditures for the SSVF program. This lack of reconciliation increases the risk of financial discrepancies, misstatements, or non-compliance with federal requirements. Effect: The lack of a formal reconciliation process increases the risk of financial errors or misstatements in the SSVF program's records. Without adequate reconciliation, there is a heightened risk of misreporting expenditures, which could lead to financial discrepancies, non-compliance with federal regulations, or disallowed costs. Cause: The cause of this issue is the absence of a formalized and consistently applied drawdown reconciliation process for the SSVF program. Recommendation: We recommend that the organization implement a formal drawdown reconciliation process to ensure that all drawdowns related to the SSVF program are accurately reconciled with actual expenditures. The process should include maintaining clear documentation of reconciliation steps to enhance the integrity and accuracy of financial records. Repeat Finding: This is not a repeat finding. Corrective Action Plan (CAP) Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The organization will establish and implement a formal drawdown reconciliation process. This will include developing written procedures, training staff on reconciliation requirements, and maintaining clear documentation for each reconciliation. Executive personnel will conduct monthly reviews to verify compliance and address any discrepancies promptly prior to drawdown. Official Responsible for Ensuring CAP: The Interim ED will be responsible for overseeing the implementation of corrective actions. Planned Completion Date for CAP: The planned completion date is March 1, 2025. Plan to Monitor Completion of CAP: The Board of Directors meet with the Executive team at least quarterly to review financials.

US Department of Department of Veteran Affairs Direct Award Program Name Supportive Services for Veteran Families CFDA Number 64.033 2021-002 Significant Deficiencies - Cost Allocation/ 10% De Minimums Non-Compliance Questioned Costs $325,644 Criteria 2 CFR section 200.403 costs must be consistently charged as either and indirect or direct cost, but may not be double charged or inconsistently charged as both. Condition We noted in our audit that the major program was billed in excess of the 10% rate. Resulting in approximately $325,000 of unallowable costs. There are significant differences in the direct vs indirect amounts billed and amounts recorded in the Agency financial records. Context The overall expenses and allowable 10% de minimums amounts were in excess of the funds received from federal grantors and state pass through grants. However, the financial records and the grant reimbursement billings had material differences. Cause Although the agency had one consistent staff member performing the grant billing, the staff member made errors in the recording of the income in the accounting records versus the billings to the agencies. Effect This caused differences in the billings and the financial records, however, total federal grant funds received did not exceed the total federal expenditure overall, but on a program level there were material over and under that require repayment to some federal programs and reimbursement from other federal programs. Recommendations We recommend monthly and annual reconciliation of the grant billings and financial general ledger be performed. Management Views Management agrees with the findings and have addressed the corrective action in a separate letter.

Finding 2019-001: Promoting Safe & Stable Families ? CFDA No. 93.556; Federal Award Identification Number ? HF18-19-12M, C-006-400, and C-006-201; Pass-through entities ? Florida Department of Children and Families, Lakeview Center, Inc., and Ounce of Prevention Fund of Florida; VA Supportive Services for Veteran Families ? CFDA No. 64.033; Federal Award Identification Number ? 12-ZZ-026 and 18-GA-438; Pass-through entities ? None; Grant period: Year Ended June 30, 2019

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