Grace Place For Children and Families, Inc.

2022 ? 001 Type of Finding: ? Material Weakness in Internal Control over Financial Reporting Condition: In-kind revenues and expenses for donations related to the food pantry program were not recorded during the years ended July 31, 2022 and 2021. Revenues and expenses were incorrectly understated. As a result, audit entries were required to properly record the in-kind donations and distributions for the year ended July 31, 2022 and revenues and expenses for the year ended July 31, 2021 were restated. Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Effect: Revenues and expenses were materially misstated for the years ended July 31, 2022 and 2021. Cause: The Organization was not recording in-kind revenues and expenses for food donated to the organization as part of the food pantry program as required by GAAP. Repeat finding: This is not a repeat finding. Recommendation: The Organization should record their in-kind donations and distributions of food donated for the food pantry program at the fair market value of the donations. Views of responsible officials and planned corrective actions: Management will ensure in-kind contributions, including food donated for the food pantry program, and the related distributions, will be recorded at fair market value.

MATERIAL WEAKNESS 2022-001 Material Weakness in Internal Control Over Financial Reporting The organization should record their in-kind donations and distributions of food donated for the food pantry program at the fair market value of the donations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Grace Place will record in-kind donations and distributions of food donated for the food pantry program at the fair market value of the donations. Name(s) of the contact person(s) responsible for corrective action: Jerri Kautsky Planned completion date for corrective action plan: Effective immediately with the fiscal year ending July 31, 2022 and going forward.

2021-001

2022 ? 002 Federal Agency: U.S. Department of education Federal Program Name: 21st Century Community Learning Centers Assistance Listing Number: 84.287 Federal Award Identification Number and Year: 93B-2242B-2PCC7 Pass-Through Agency: State of Florida, Department of Education Award Period: August 1, 2021 - July 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: 2 CFR Part 200.3.3 requires an entity establish and maintain effective internal controls over federal awards and provide reasonable assurance that federal funds are managed in a way that is compliant with federal statute, regulations, and the terms and conditions of the federal award. Condition: The internal control over the review of the allowable costs charged to the grant failed. The monthly reimbursement requested payment for more than the actual amount of salaries expenses incurred. Questioned costs: $65 Context: We noted one of the 56 payroll expenses charged to the grant was not reviewed and approved prior to submission for reimbursement. An employee was paid for 5 hours of work when there approved timecard only had 2.5 hours listed. The grant was charged $130 for the employees pay for the period selected when in fact only $65 should have been charged to the grant. Cause: The Organization failed to catch the error on the timecard and the monthly reimbursement packet during the review and reconciliation process. Effect: The Organization submitted more expense reimbursements than were actually incurred. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization design controls to ensure an adequate review process is in place to review amounts charged to the grant prior to submitting for reimbursement. Views of responsible officials: There is no disagreement with the audit finding.

U.S. Department of Education 2022-002 21st Century Community Learning Centers ? Assistance Listing No. 84.287C Recommendation: We recommend the Organization design controls to ensure an adequate review process is in place to review amounts charged to the grant prior to submitting for reimbursement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: A new Chief Financial Officer was hired in March 2022 with appropriate expertise to evaluate financial reporting processes and controls. Additional controls over the preparation of financial statements to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP have been implemented.. Name(s) of the contact person(s) responsible for corrective action: Jerri Kautsky Planned completion date for corrective action plan: completed as of date of audit report, December 8, 2022. If the U.S. Department of Education has questions regarding this plan, please call Jerri Kautsky, CFO, at 239-255-7223.

2021 ? 001Type of Finding:? Material Weakness in Internal Control Over Financial ReportingCondition: Multiple audit entries were necessary to properly state account balances. Account reconciliations were not performed timely and accurately. Therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the organization?s internal controls.Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP.Effect: The lack of controls in place over the financial reporting function increases the risk of misstatements, fraud, or errors occurring and not being detected and corrected.Cause: The Organization had a high level of turnover in key positions during the year under audit. Financial statements were not properly reviewed and approved during the year by someone knowledgeable of the requirements to prepare the financials in accordance with U.S. GAAP.Repeat finding: This is not a repeat finding.Recommendation: The organization should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP.Views of responsible officials and planned corrective actions: Management will continue to rely on the audit firm to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance.

MATERIAL WEAKNESS2021-001 Material Weakness in Internal Control Over Financial ReportingRecommendation: The organization should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action taken in response to finding: A new Chief Financial Officer was hired in March 2022 with appropriate expertise to evaluate financial reporting processes and controls. Additional controls over the preparation of the financial statements to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP have been implemented.Name(s) of the contact person(s) responsible for corrective action: Jerri Kautsky, CPAPlanned completion date for corrective action plan: Completed as of date of audit report, August 11, 2022.

2021 ? 002Type of Finding:? Significant Deficiency in Internal Control Over Financial ReportingCondition: No supporting documentation was able to be provided to show journal entries were reviewed and approved.Criteria or specific requirement: Internal controls should be in place to ensure all journal entries are reviewed and approved prior to entry and supporting documentation should be maintained.Effect: Unauthorized journal entries increase the risk of misappropriation of assets and management override of controls within the Organization.Cause: The Organization was not aware the proof of journal entry review needed to be documented and documentation maintained.Repeat finding: This is not a repeat finding.Recommendation: The organization should evaluate their journal entry processes and controls, including the maintaining and storage of documents in order to ensure journal entry review and approval is documented and available for review going forward.Views of responsible officials and planned corrective actions: Management will review the journal entry policies and procedures and ensure it includes instructions for proper documentation and storage requirements.

SIGNIFICANT DEFICIENCY2021-002 Significant Deficiency in Internal Control Over Financial ReportingRecommendation: The organization should evaluate their journal entry processes and controls, including the maintaining and storage of documents in order to ensure journal entry review and approval is documented and available for review going forward.Explanation of disagreement with audit finding: There is no disagreement with the audit finding.Action planned/taken in response to finding: All journal entries will be approved by the CFO and maintained for subsequent review.Name(s) of the contact person(s) responsible for corrective action Jerri Kautsky, CPAPlanned completion date for corrective action plan: Completed as of date of audit report, August 11, 2022.