JobPath, Inc.

Reporting (Significant Deficiency) and Compliance Federal Agency: U.S. Department of Treasury Program Title: Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Assistance Listing Number: 21.027 Federal Award Source: Pass-through Funding Pass-Through Entity: City of Tucson Pass-Through Identifying Number: NW9MUKKRP9C5 Criteria – The pass-through entity’s grant agreement with the Organization requires that the Organization submit quarterly summary reports with demographic data no later than 15th of the month following each Fiscal Quarter. Condition – During our audit of the reporting requirements for the CSLFRF program, we requested quarterly summary reports and noted that they were not created nor submitted. Cause – The finding appears to be the result of staffing turnover at the Organization. Effect and Context – Four quarterly summary reports were not submitted. Questioned Costs – None identified. Recommendation – We recommend the Organization implement policies and procedures to ensure timely and accurate reporting of required program reports. View of Responsible Officials: We are in agreement with the finding and are in the process of updating our procedures to mitigate the issues noted in the future. See our Corrective Action Plan for the fiscal year ended June 30, 2024 for additional detail.

We identified the issue and the employee responsible was removed. As of July 1, 2024 the Data systems and Eligibility Manager is responsible for reporting with the added oversight and sign off from the Director of Operations.

Reporting (Significant Deficiency) and Compliance Federal Agency: U.S. Department of Treasury Program Title: Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Assistance Listing Number: 21.027 Federal Award Source: Pass-through Funding Pass-Through Entity: State of Arizona Pass-Through Identifying Number: GR-ARPA-JP-030122-01 Criteria – The pass-through entity’s grant agreement with the Organization requires that the Organization submit quarterly summary reports with the numbers of program participants no later than 15th of the month following each Fiscal Quarter. Condition – During our audit of the reporting requirements for the CSLFRF program, we requested quarterly summary reports and noted that they were not created nor submitted. Cause – The finding appears to be the result of staffing turnover at the Organization. The former Grants Manager resigned in May 2023 with position being absorbed by Director of Finance in July 2023. Effect and Context – Four quarterly summary reports were not submitted. Questioned Costs – None identified. Recommendation – We recommend the Organization implement policies and procedures to ensure timely and accurate reporting of required program reports. View of Responsible Officials: We are in agreement with the finding and are in the process of updating our procedures to mitigate the issues noted in the future. See our Corrective Action Plan for the fiscal year ended June 30, 2023 for additional detail.

Reporting (Significant Deficiency) and Federal Agency: U.S. Department of Treasury Program Title: Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) Assistance Listing Number: 21.027 Federal Award Source: Pass-Through Funding Pass-Through Entity: State of Arizona Pass-Through Identifying Number: GR-ARPA-JP-030122-01 Criteria – The pass-through entity’s grant agreement with the Organization requires that the Organization submit quarterly summary reports with the numbers of program participants no later than 15th of the month following each Fiscal Quarter. Condition – During our audit of the reporting requirements for the CSLFRF program, we requested quarterly summary reports and noted that they were not created nor submitted. Cause – The finding appears to be the result of staffing turnover at the Organization. The former Grants Manager resigned in May 2023 with position being absorbed by Director of Finance in July 2023. Effect and Context – Four quarterly summary reports were not submitted. Questioned Costs – None identified. Recommendation – We recommend the Organization implement policies and procedures to ensure timely and accurate reporting of required program reports. View of Responsible Officials: We are in agreement with the finding and are in the process of updating our procedures to mitigate the issues noted in the future. See our Corrective Action Plan for the fiscal year ended June 30, 2023 for additional detail. Corrective Action Plan: The Director of Finance will create a grant reporting checklist so that in the event of staff turnover, no reporting requirements are overlooked in the transition. The checklist will be created by the next quarterly grants meeting scheduled for April 4th. Subsequently, the Director of Finance will update the checklist every time a new grant is received and include a status review of all grant reporting requirements in the weekly Finance meeting and quarterly Grant meeting agendas, both of which are attended by the CEO, Director of Operations, Director of Development, and Director of Finance.

Federal Agency: U.S. Department of Treasury Program Title: Coronavirus State and Local Fiscal Recovery Funds (?CSLFRF?) Assistance Listing Number: 21.027 Federal Award Source: Pass-through Funding Pass-Through Entity: Pima County Pass-Through Identifying Number: CT-CA-21*0517 Criteria ? The pass-through entity?s grant agreement with the Organization requires that the Organization submit monthly summary reports with the numbers of program participants no later than 5 days after the end of each month. Condition ? During our audit of the reporting requirements for the CSLFRF program, we audited the September 2021, December 2021 and January 2022 monthly summary reports and noted that they were submitted to the pass-through entity on October 14, 2021, January 19, 2022 and February 15, 2022, respectively. Consequently, the reports were noted to be submitted past the required deadline. In addition, a supporting detail of students included in each report was not separately maintained; however, management was able to provide a current program participants listing as of February 2, 2022 and when we filtered this listing by the participant?s enrollment date, we were able to agree the total number of participants to the numbers reported in the monthly summary reports selected for testing within +/- five participants. However, when we compared a listing of actual program participants reimbursed using program funds through February 2, 2022 from the general ledger to the current program participants listing as of February 2, 2022, we noted there were 35 out of 152 participants that had been reimbursed but were not included in the current program participants listing as of February 2, 2022, and 34 out of 149 participants that were included in the current program participants listing as of February 2, 2022 but had not been reimbursed using program funds through February 2, 2022. Finally, we noted the monthly summary reports were not formally reviewed and approved by someone other than the preparer of the reports. Cause ? The finding appears to be the result of the program participant tracking software not maintaining a history of a participant?s program assignments. Given this, once a participant?s program assignment has been changed in the system, there is no way to recreate a listing of the participants for a given program during a specific period of time. In addition, management did not maintain a detail of program participants for each report submitted and no reconciliation to the general ledger or review and approval of the monthly summary reports was conducted. Effect and Context ? Three out of twelve monthly summary reports were submitted late and the accuracy of each report could not be verified. Our sample was a statistically valid sample. Questioned Costs ? None noted. Recommendation ? We recommend the Organization implement policies and procedures to ensure timely and accurate reporting of required program reports, as well as ensure all required program reports are appropriately reviewed and approved by supervisory personnel who did not also prepare the reports. View of Responsible Officials: We are in agreement with the finding and are in the process of updating our procedures to mitigate the issues noted in the future. See our Corrective Action Plan for the fiscal year ended June 30, 2022 for additional detail.

To ensure the timely submission of the monthly participant report to the pass-through entity, JobPath has modified its current process, submitting the report by the required deadline, separately from the invoice, which is due later in the month. By the next reporting date of April 5th, reports will be reviewed internally by supervisory personnel who did not prepare the report. The CEO will ensure these actions are taken. To ensure reporting accuracy, JobPath will create and maintain an electronic journal documenting individual participant funding assignments and any changes made to the funding sources, including the date, the person making the change, and the reason for the change. Only individuals with the appropriate roles and authority will have editing access. The CEO will ensure this action is implemented by the next reporting date of April 5th. Additionally, JP will work with the platform developer to add the necessary features so that changes are automatically documented and maintained and historical data/reports can be generated for control purposes. The Director of Operations will ensure this action is taken by June 30th.