Pine Bluff Jefferson County Economic Opportunities Commission, Inc.

Finding 2021-005 is applicable to the following major programs: U.S. Department of Health and Human Services – Community Services Block Grant and Community Services Block Grant CARES – CFDA #93.569. Condition: During the course of audit testing, we noted the following: - Purchase orders were lacking on 8 of 60 individual expenditures and invoices were missing on 1 of 60. - For eligibility we noted 7 applications that did not have proper approval by management, 2 applications that were not signed by the applicant, 22 applications where the P.O. date was more than 30 days from the application date, and 2 application without income support. - Expenditures are not being coded in a manner that allows management to properly track them to the correct grants as submitted to the State of Arkansas resulting in the trial balance showing more or less expenditures than what were actually submitted for reimbursement. Criteria: Requirements of the grant award include that the grantee properly meet its legal and fiscal responsibilities, including monthly financial reports, appropriate reconciliation of revenues and expenses in the general ledgers to grant drawdowns or requests, ensuring eligibility and ensuring only allowable costs are charged to the grant. Also, the grantee is required to safeguard assets to ensure program funds are used for appropriate purposes. Questioned Costs: Expenditures totaling $11,341 in expenditures were missing invoices or purchase orders. Cause: Previous management and the board of directors did not adequately implement effective internal controls over financial activities and compliance. Effect: As a result, management and the board of directors were unable to identify and detect errors, misallocation of funds, or maintain sufficient accounting records. A materially accurate schedule of expenditures of federal awards was not able to be provided by management due expenditures not being allocated properly within the accounting system. Recommendation: We advise management and the board of directors develop policies and procedures to address monitoring issues and improve accuracy in grant reporting. Response: Management agrees with the auditors’ findings and plans to implement policies and procedures to improve recording accuracy of grant funds, including ensuring that all finance staff is properly trained and a guide is created for current and future staff.

Management agrees with the auditors’ findings and has implemented policies and procedures to improve recording accuracy of grant funds, including ensuring that all finance staff are properly trained. A guide will be created for current and future staff.

2021-005

Condition: During the course of audit testing, we noted the following: ? Instances where expenditures of grant funds were not properly recorded to the correct grant. ? Purchase orders were lacking on 34 of 60 individual expenditures and invoices were missing on 1 of 60. ? For eligibility we noted 2 applicants where household income was more than the allowed percentage of the stated poverty level, 1 application with a missing signature, 11 applications where the P.O. date was more than 30 days from the application date, and 1 application without income support. ? We noted 2 expenditures that were coded to the major program, but submitted to another program for reimbursement. ? Expenditures are not being coded in a manner that allows management to properly track them to the correct grants as submitted to the State of Arkansas resulting in the trial balance showing more or less expenditures than what were actually submitted for reimbursement. Criteria: Requirements of the grant award include that the grantee properly meet its legal and fiscal responsibilities, including monthly financial reports, appropriate reconciliation of revenues and expenses in the general ledgers to grant drawdowns or requests, ensuring eligibility and ensuring only allowable costs are charged to the grant. Also, the grantee is required to safeguard assets to ensure program funds are used for appropriate purposes. Questioned Costs: Expenditures totaling $94,871 in expenditures were missing invoices or purchase orders. Of the $94,871, a total of $64,581 was related to the major program. In addition, we identified $6,758 in expenditures that were coded to general ledger accounts related to the major program, but these expenditures had been submitted under another program. Cause: Previous management and the board of directors did not adequately implement effective internal controls over financial activities and compliance. Effect: As a result, management and the board of directors were unable to identify and detect errors, misallocation of funds, or maintain sufficient accounting records. A materially accurate schedule of expenditures of federal awards was not able to be provided by management due expenditures not being allocated properly within the accounting system. Recommendation: We advise management and the board of directors develop policies and procedures to address monitoring issues and improve accuracy in grant reporting. Response: Management agrees with the auditors? findings and plans to implement policies and procedures to improve recording accuracy of grant funds, including ensuring that all finance staff is properly trained and a guide is created for current and future staff.

Finding 2021-005 is applicable to the following major programs: U.S. Department of Health and Human Services ? Community Services Block Grant and Community Services Block Grant CARES ? CFDA #93.569. Finding: During the course of audit testing, the following was noted: ? Instances where expenditures of grant funds were not properly recorded to the correct grant. ? Purchase orders were lacking on 34 of 60 individual expenditures and invoices were missing on 1 of 60. ? For eligibility 2 applicants were noted where household income was more than the allowed percentage of the stated poverty level, 1 application with a missing signature, 11 applications where the P.O. date was more than 30 days from the application date, and 1 application without income support. ? Two expenditures were noted that were coded to the major program, but submitted to another program for reimbursement. ? Expenditures are not being coded in a manner that allows management to properly track them to the correct grants as submitted to the State of Arkansas resulting in the trial balance showing more or less expenditures than what were actually submitted for reimbursement. Requirements of the grant award include that the grantee properly meet its legal and fiscal responsibilities, including monthly financial reports, appropriate reconciliation of revenues and expenses in the general ledgers to grant drawdowns or requests, ensuring eligibility and ensuring only allowable costs are charged to the grant. Also, the grantee is required to safeguard assets to ensure program funds are used for appropriate purposes. Expenditures totaling $94,871 in expenditures were missing invoices or purchase orders. Of the $94,871, a total of $64,581 was related to the major program. In addition, $6,758 in expenditures was identified that were coded to general ledger accounts related to the major program, but these expenditures had been submitted under another program. Previous management and the board of directors did not adequately implement effective internal controls over financial activities and compliance. Response: Management agrees with the auditors? findings and plans to implement policies and procedures to improve recording accuracy of grant funds, including ensuring that all finance staff is properly trained and a guide is created for current and future staff. Anticipated Correction Date: December 31, 2023