Metro United WayNon-Profit

Condition: During the audit, audit adjustments were recorded that were material to the financial statements. These adjustments were primarily the result of account balances not being reconciled to supporting schedules or underlying documentation on a timely basis. The errors were not detected and corrected by management’s internal controls prior to the financial statement audit. Additionally, it was discovered that reconciliations for certain account balances and transactions were not being performed and Metro United Way was initially unable to reconcile accounting records. Cause: Reconciliations were not performed timely and review procedures were ineffective in identifying discrepancies between the general ledger and supporting documentation. Effect: Management was required to review effected accounts, transactions, and balances to ensure accuracy. This resulted in audit schedules being updated and adjustments to Metro United Way’s financial statements for the year ended April 30, 2025. Recommendation: Ensure that accounts are being reconciled on a regular basis to ensure that account balances are accurate and financial information is complete prior to reporting. Views of Responsible Officials: Metro United Way, Inc. agrees with the finding and the recommendation noted above has been implemented for fiscal year-end April 30, 2026.

2025-002 Reconciliation of Federal Award Expenditures and Revenues Condition: During the audit, it was discovered that both revenues and expenditures related to federal awards were not properly reconciled. Cause: Metro United Way did not have a process in place at fiscal year-end to ensure that federal award accounts were monitored and accounting records were reconciled timely and agreed to underlying supporting documentation. Effect: Management was required to review revenues and expenditures related to certain grants to ensure amounts were recorded in the correct accounts and to ensure the Schedule of Expenditures of Federal Awards (SEFA) was accurate. This resulted in adjustments to Metro United Way’s financial statements for the year ended April 30, 2025. 2025-002 Reconciliation of Federal Award Expenditures and Revenues (Continued) Recommendation: Implement and document processes to reconcile federal award accounts monthly and review SEFA prior to audit. Views of Responsible Officials: Metro United Way, Inc. agrees with the finding and the recommendation noted above will implement for fiscal year-end April 30, 2026.

2025-003 Inaccurate SEFA Identification of the federal program: All federal programs Criteria or specific requirement (including statutory, regulatory, or other citation): The SEFA should be complete and accurate, supported by accounting records, and reconciled to the general ledger. Condition: During the audit, it was identified that the SEFA did not accurately reflect all federal expenditures incurred during the period under audit. Cause: Timely reconciliations were not performed timely and existing review procedures were not effective in identifying discrepancies between the general ledger and supporting documentation. Effect or potential effect: Management was required to perform additional review of the effected accounts, transactions, and balances to ensure accuracy of the SEFA. Questioned costs: No questioned costs were identified. Context: This finding was identified during audit procedures performed over all federal programs administered by the Organization. Variances were noted across multiple federal programs, resulting in adjustments to the SEFA. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: Management should implement procedures to ensure the SEFA is being reconciled to the general ledger on a regular basis and that amounts reported are complete, accurate, and supported by appropriate documentation prior to reporting. Views of Responsible Officials: Metro United Way, Inc. agrees with the finding and the recommendation noted above has been implemented for fiscal year-end April 30, 2026

Criteria and Condition: Subsequent to the issuance of the audited financial statements for the year ended April 30, 2023, it was discovered that the Organization recorded certain pledges receivable and revenue based on estimates calculated by the Organization, rather than formal commitments which is not in accordance with the requirements of U.S. GAAP. Cause: Metro United Way, Inc. was not clear on the authoritative guidance to follow in regard to recording revenue and pledges receivable for certain campaigns that supporting documentation was not provided. Effect: Management restated the financial statements for the year ended April 30, 2023, to correct the overstatement. The adjustments reduced pledges receivable, revenue, and change in net assets by approximately $2,260,000, as compared to the balances previously reported as of April 30, 2023. Recommendation: Ensure that all revenue and pledges receivable are recorded in accordance with U.S. GAAP by recording pledges based on a formal commitment provided to the Organization. Views of Responsible Officials and Planned Corrective Actions: Metro United Way, Inc. agrees with the finding and the recommended procedures have been implemented for fiscal year ended April 30, 2024.

2022-004 Late Submission of Fiscal Year 2021 Single Audit and Form SF-SAC CFDA No. 21.019 ? Coronavirus Relief Fund U.S. Department of Treasury, Passed through Louisville Metro Government Public Health and Wellness Criteria and Condition: Single audits should be submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days of Metro United Way, Inc.?s receipt of the audit report or nine months after fiscal year-end. Metro United Way, Inc. did not comply with this requirement. The single audit for fiscal year ended April 30, 2021 was submitted after the deadline. Questioned Costs: Not applicable. Context: As mandated by the Single Audit Act Amendments of 1996 (PL 104-156), OMB Circular A-133, and OMB Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), it is required that single audits be submitted timely to the FAC. Metro United Way, Inc. did not comply with this requirement for the year ended April 30, 2021. Cause: Metro United Way, Inc. was not aware of the Uniform Guidance requirement due to the single audit for the fiscal year ended April 30, 2021 being the Organization?s initial submission. As such, controls were not in place to facilitate submission of the single audit to the FAC within the earlier of 30 days of Metro United Way, Inc.?s receipt of the audit report or nine months after fiscal year-end. Effect: After Metro United Way, Inc. became aware of the filing requirement, a late filing of the Single Audit was submitted to the FAC. Identification as a Repeat Finding: Not applicable. Recommendation: Establish an effective timeline and sufficient monitoring procedures to ensure the single audit to the FAC is submitted timely. Views of Responsible Officials and Planned Corrective Actions: Metro United Way, Inc. agrees with the finding and the recommended procedures have been implemented for fiscal year ended April 30, 2022. See corrective action plan.