FOLSOM CORDOVA COMMUNITY PARTNERSHIP

Significant deficiency - Preparation of the Schedule of Federal Expenditures U.S. Department of the Treasury AL #21.027 U.S. Department of Labor AL #17.258 / 17.259 / 17.278 Criteria: Uniform Guidance requires Organizations to prepare a schedule of expenditures of federal awards for the period covered by the audit. The schedule must list individual federal programs by federal agency and provide total federal awards expended for each individual federal program and the Assistance Listings Number. Condition: During our audit, we identified a federal program excluded from the Schedule of Federal Expenditures. Cause: Grant agreements did not clearly identify the dollar amount made available under each federal award and the associated Assistance Listing number. Effect: The Schedule of Expenditures of Federal Awards (SEFA) was inaccurate. This could result in non-compliance with reporting requirements set by grantors and ultimately jeopardize the renewal of funding. Questioned Costs: None. Repeat Finding: Previously reported as finding 2023-002 Recommendation: We recommend confirming directly with all granting organizations (1) the amount of expenditures incurred during the fiscal year, (2) the portion that is federally funded, (3) the Assistance Listing number, (4) the amount advanced under the contract, if any, and (5) the amount owed to FCCP at June 30th . Response: The Organization agrees with the finding. For the year ending June 30, 2024, FCCP will send confirmations to grantors to verify the federal funds and Assistance Listing Number.

Response: The organization agrees with the finding. The organization has created and maintains a comprehensive log of all grants received. Log data includes grant number, grant source and Assistance Listing Number, the grant period, total grant amount, the grant advance amount received, the usage of the funds, and the remaining balance. Completed January 2024.

2023-002

Significant deficiency - Timely Submission of Single Audit Data Collection Form U.S. Department of the Treasury AL #21.027 U.S. Department of Labor AL #17.258 / 17.259 / 17.278 Criteria: Uniform Guidance requires Organizations that expend $750,000 and greater of federal funds to conduct a single audit and submit the data collection form to the Federal Audit Clearinghouse the earlier of 30 days after receiving the single report or nine months after the end of the fiscal year. Condition: The Organization has experienced delays in the preparation and issuance of the June 30, 2024, financial statements and its Single Audit required under the Uniform Guidance. Cause: This situation was attributed to the turnover and vacancy in the accounting department and the shortage of support staff. Effect: The failure to submit single audits within the time frame prescribed by Uniform Guidance causes FCCP to be considered a high-risk auditee. In addition, the Organization is required to adhere to strict reporting deadlines set by regulatory bodies, including Federal grantors. Failure to meet these deadlines can result in compliance issues and penalties and ultimately jeopardize the renewal of funding. Questioned costs: None Repeat Finding: Previously reported as finding 2023-003 Recommendation: Completion of the June 30, 2025 audit prior to the submission deadline is expected since the Organization has employed the necessary accounting personnel who have worked diligently to catch up on multiple years of delinquent audits. Response: The Organization agrees with the finding. Now that the Organization has filled the accounting director position and the delinquent audits have been completed, annual audits are expected to be completed in a timely manner.

Response: The organization agrees with the finding. Now that the organization has filled the accounting director position and the delinquent audits have been completed, annual audits are expected to be completed in a timely manner.

2023-003

Significant Deficiency - Allocation of Insurance Expense - Allowable Costs U.S. Department of the Treasury AL #21.027 U.S. Department of Labor AL #17.258 / 17.259 / 17.278 Criteria: Uniform Guidance requires federal awards to be expended only for allowable activities and that the costs charged are in accordance with the applicable cost principles. Condition: The Organization's internal controls over financial reporting did not ensure that prepaid insurance and monthly adjustments to the account were based on current insurance statements resulting in an inaccurate amount allocated to grants each month. Cause: This situation was attributed to the turnover and vacancy in the accounting department and the shortage of support staff. Effect: Insurance expense allocated to grants and reimbursed by grantors was more than the actual expenditure resulting in disallowed costs and the potential need to refund grantors. Total insurance costs overallocated to grants for the year did not meet the threshold to be reported as a questioned cost. Questioned Costs: None Recommendation: Implement procedures to (1) reconcile prepaid insurance and insurance expense to the actual policies (2) allocate insurance expense based on the annual policy expense over 12 months and (3) ensure allocation calculations are updated annually for the new policy amounts. Response: The Organization agrees with the finding. The Organization will implement a method to ensure prepaid insurance is appropriately adjusted and insurance costs are accurately recorded and allocated to grants.

Response: The organization agrees with the finding. The organization has implemented a method to ensure prepaid insurance is appropriately adjusted and insurance costs are accurately recorded and allocated to grants.

2023-002 Significant deficiency - Preparation of the Schedule of Federal Expenditures Criteria: Uniform Guidance requires Organizations to prepare a schedule of expenditures of federal awards for the period covered by the audit. The schedule must list individual federal programs by federal agency and provide total federal awards expended for each individual federal program and the Assistance Listings Number. Condition: During our audit, we discovered the incorrect inclusion of non-federal programs and exclusion of federal programs on the Schedule of Federal Expenditures. Cause: Grant agreements did not clearly identify the dollar amount made available under each federal award and the associated Assistance Listing number. Effect: The Schedule of Expenditures of Federal Awards (SEFA) was inaccurate. This could result in non-compliance with reporting requirements set by grantors and ultimately jeopardize the renewal of funding. Questioned Costs: None. Repeat Finding: Previously reported as finding 2022-002 Recommendation: We recommend confirming directly with the granting organizations (a) the amount of expenditures incurred during the fiscal year, (b) the portion that is federally funded, (c) the Assistance Listing number, (d) the amount advanced under the contract, if any, and (e) the amount owed to FCCP at June 30th . Response: The Organization agrees with the finding. For the year ending June 30, 2024, FCCP will send confirmations to select grantors to verify the federal funds and Assistance Listing Number.

Response: The organization agrees with the finding. For fiscal year ending June 30, 2024, FCCP will create and implement a process for sending confirmation requests to grantors of federal funds to verify the federal funds and Assistance Listing Number.

2022-002

2023-003 Significant deficiency - Timely Submission of Single Audit Data Collection Form Criteria: Uniform Guidance requires Organizations that expend $750,000 and greater of federal funds to conduct a single audit and submit the data collection form to the Federal Audit Clearinghouse the earlier of 30 days after receiving the single report or nine months after the end of the fiscal year. Condition: The Organization has experienced significant delays in the preparation and issuance of the June 30, 2023, financial statements and its Single Audit required under the Uniform Guidance. Cause: This situation was attributed to the turnover and vacancy in the accounting department and the shortage of support staff. Effect: The failure to submit single audits within the time frame prescribed by Uniform Guidance causes FCCP to be considered a high-risk auditee. In addition, the Organization is required to adhere to strict reporting deadlines set by regulatory bodies, including Federal grantors. Failure to meet these deadlines can result in compliance issues and penalties and ultimately jeopardize the renewal of funding. Questioned costs: None Repeat Finding: Previously reported as finding 2022-004 Recommendation: Employ the necessary accounting personnel to ensure the financial statements are completed in an accurate and timely manner. Response: The Organization agrees with the finding. Now that the Organization has filled the accounting director position the delinquent audits are being completed as efficiently as possible.

The organization agrees with the finding. Now that the organization has filled the accounting director position the delinquent audits are being completed as efficiently as possible.

2022-004

2023-004 Significant Deficiency - Accrued Vacation - Period of Performance Criteria: Uniform Guidance requires revenue to be recognized when federal expenditures under cost reimbursement contracts are incurred. Condition: The Organization's internal controls over financial reporting did not ensure that revenues and expenses were recorded in the proper period. Accrued vacation at June 30, 2023 and 2022 did not agree to the supporting detail resulting in adjustments that were not allocated to grants. Cause: This situation was attributed to the turnover and vacancy in the accounting department and the shortage of support staff. Effect: Grant expenditures and the associated invoicing for reimbursement do not occur in the appropriate fiscal year. Although this is just a timing difference, there is a potential to lose out on receiving reimbursement for expenses depending on the grant period. Questioned Costs: None Repeat Finding: Previously reported as finding 2022-007 Recommendation: Employ the necessary accounting personnel to ensure the financial statements are completed in an accurate and timely manner. Implement vacation accrual procedures at month end to ensure costs are captured in the appropriate period. Response: The Organization agrees with the finding. The Organization will implement a method to ensure accrued vacation is appropriately adjusted and vacation costs are accurately recorded and allocated to grants.

The organization agrees with the finding. The organization will implement a method to ensure accrued vacation is appropriately adjusted and vacation costs are accurately recorded and allocated to grants. Completed in FY2023-2024

2022-007

Material Weakness - Payroll Benefit Expenditures – Allowable Costs/ Activities U.S. Department of Health and Human Services CFDA #93.566 U.S. Department of Labor CFDA #17.258 / 17.259 / 17.278 Criteria: In accordance with Uniform Guidance, all federal grant expenditures must be adequately documented. The Organization should have internal controls designed to ensure proper cost allocation. Condition: The Organization did not maintain sufficient documentation to support fringe benefit expenditures submitted for reimbursement. During our audit we were unable to verify the total fringe benefit amounts allocated to grants in the three months selected for testing. Cause: This situation was attributed to the turnover and vacancy in the accounting department positions from July 2021 through May 2022 which resulted in the absence of guidance as well as the use of inconsistent accounting methodologies during this period and at year end. Effect: There is a risk that unallowable costs could be charged to a grant or conversely there is a risk that allowable costs were not charged to the grant. Questions Costs: Unknown Repeat Finding: No Recommendation: We recommend the Organization implement procedures to ensure sufficient supporting records are maintained for all grant expenses submitted for reimbursement Response: The Organization agrees with the audit finding. There were gaps in information flow due to staff turnover. The Organization already has a process in place for reviewing expenditures. The Organization will significantly increase the practice of including a subclass to track and report grant expenses for reimbursement.

Response: The organization agrees with the finding. There were gaps in information flow due to staff turnover. The organization already has a process in place for reviewing expenditures. The organization will significantly increase the practice of including a subclass to track and report grant expenses for reimbursement. Completed before January 2024.

Material Weakness – Documentation of Non-Payroll Expenditures – Allowable Costs /Activities U.S. Department of Health and Human Services CFDA #93.566 U.S. Department of Labor CFDA #17.258 / 17.259 / 17.278 Criteria: In accordance with Uniform Guidance, all federal grant expenditures must be adequately documented. The Organization should have internal controls designed to ensure proper cost allocation. Condition: The Organization did not maintain sufficient documentation to support the internal approval and proper distribution of expenditures submitted for reimbursement. Cause: This situation was attributed to the turnover and vacancy in the accounting department positions from July 2021 through May 2022 which resulted in the absence of guidance as well as the use of inconsistent accounting methodologies during this period and at year end. Effect: There is a risk that unallowable costs could be charged to a grant or conversely there is a risk that allowable costs were not charged to the grant. Questioned costs: Unknown Repeat finding: No Recommendation: We recommend the Organization implement procedures to ensure sufficient supporting records are maintained for all grant expenses submitted for reimbursement. Response: The Organization agrees with the finding. There were gaps in information flow due to staff turnover. The Organization already has a process in place for reviewing expenditures. The Organization will significantly increase the practice of including sufficient supporting records to report grant expenses for reimbursement.

Response: The organization agrees with the finding. There were gaps in information flow due to staff turnover. The organization already has a process in place for reviewing expenditures. The organization will significantly increase the practice of including sufficient supporting records to report grant expenses for reimbursement. Completed before January 2024.