BOSSIER OFFICE OF COMMUNITY SERVICES, INC.Non-Profit

Federal Financial Reporting Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. did not provide timely submissions of its Federal Financial Report (SF-425) during FY 25. CRITERIA: 45 CFR section 75.303(b) – Internal Controls, requires non-Federal agencies to comply with Federal statutes, regulations, and the terms and conditions of all Federal awards. CAUSE: The processing and preparation of Federal Financial Reports (SF-425) was delayed as a result of the entity During the fiscal year ending December 31, 2025, the reports were filed late. EFFECT: By not receiving complete and accurate grant program activity financial reports, the Federal grantor agency may be prevented from making timely, informed decisions about grant program operations. RECOMMENDATION: Management should develop and implement procedures to ensure that complete and accurate Federal

Federal Financial Reporting Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. did not provide timely submissions of its Federal Financial Report (SF-425) during FY 25. CRITERIA: 45 CFR section 75.303(b) – Internal Controls, requires non-Federal agencies to comply with Federal statutes, regulations, and the terms and conditions of all Federal awards. CAUSE: The processing and preparation of Federal Financial Reports (SF-425) was delayed and not filed timely. EFFECT: By not receiving complete, accurate and timely grant program activity financial reports, the Federal grantor agency may be prevented from making timely, informed decisions about grant program operations. RECOMMENDATION: Management should develop and implement procedures to ensure that complete and accurate Federal

2024-003 Financial Management Fiscal year finding initially occurred: 2021 CONDITION: While performing our audit procedures for FY 24, there were numerous instances of revenue and expense transactions being miscoded between federal grant program funds and expenditures being misclassified on the balance sheet. In addition, reconciliations of grant revenues to grant expenditures were not being performed which could lead to over drawing of federal funds. CRITERIA: 2 CFR 1.200.302(b) Financial Management requires that the financial management system of a non-Federal entity must provide records that identify adequately the source and application of funds for federally funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. CAUSE: Reconciliation and review of detailed general ledger account balances were not performed in a timely manner during FY 24. EFFECT: Inaccurate and incomplete financial statement reports may be submitted to users of the financial statements, as well as grantor agencies. RECOMMENDATION: All detailed general ledger account balances should be reviewed and reconciled on a monthly basis to ensure complete and accurate financial information is provided to all users of the financial information. VIEW OF RESPONSIBLE OFFICIAL: Management have contracted a CPA to work with Financial staff to ensure the accuracy of revenue and expense transactions. CPA will review revenue and expense statements monthly and make any necessary corrections.

2024-004 Program Governance Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. failed to provide accurate monthly financial statements to its Board of Directors during the fiscal year under audit. Although the entity hired a CPA firm to assist with reconciling their financial transactions. This did not occur until after the fiscal year end. In review of detail general ledger activity and performance of audit procedures, it was noted that significant adjustments were made to various revenue and expense accounts in order to balance the financial statements at year end. CRITERIA: Section 642(d)(2)(A) of the Head Start Act requires agencies to provide monthly financial statements to their Board of Directors CAUSE: The Bossier Office of Community Services, Inc. did not have proper internal controls over reconciling monthly bank statements as well as controls over preparing accurate financials. EFFECT: The Board of Directors of Bossier Office of Community Services, Inc. may not have the complete and accurate financial information needed to make informed operational decisions. RECOMMENDATION: Management should consider alternatives for preparing and reviewing monthly financial reports in the event financial management staff are unavailable in the future to perform these duties in a timely manner. VIEW OF RESPONSIBLE OFFICIAL: Management have contracted a CPA to work with Financial staff to ensure the accuracy of financial records. CPA will review financial record monthly for accuracy to ensure the Board of Directors receive accurate financial information.

2024-005 Federal Financial Reporting Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. did not provide accurate and timely submissions of its Federal Financial Report (SF-425) during FY 24. CRITERIA: 45 CFR section 75.303(b) – Internal Controls, requires non-Federal agencies to comply with Federal statutes, regulations, and the terms and conditions of all Federal awards. CAUSE: The processing and preparation of Federal Financial Reports (SF-425) was delayed as a result of significant financial management staff turnover during the first quarter of FY 24. During the fiscal year ending December 31, 2024, the reports were filed late, and as noted in finding 2024-004 contained significant errors. EFFECT: By not receiving complete and accurate grant program activity financial reports, the Federal grantor agency may be prevented from making timely, informed decisions about grant program operations. RECOMMENDATION: Management should develop and implement procedures to ensure that complete and accurate Federal Financial Reports are prepared, reviewed, and submitted in a timely manner. View of Responsible Official: Management have contracted a CPA to work with Financial staff to ensure the accuracy of financial records. A schedule of financial activities is in place the include due date for submission of Federal Financial Report (SF-425) Executive Director will monitor the financial records of submission and report to the Board of directors.

2022-004 Financial Management Fiscal year finding initially occurred: 2021 CONDITION: While performing our audit procedures for FY 22, there were numerous instances of revenue and expense transactions being miscoded between federal grant program funds and transactions being duplicated between funds. In addition, reconciliations of grant revenues to grant expenditures were not being performed which could lead to over drawing federal funds. RECOMMENDATION: All detailed general ledger account balances should be reviewed and reconciled on a monthly basis to ensure complete and accurate financial information is provided to all users of the financial information. CURRENT STATUS: Not Resolved. See finding 2023-004.

2022-005 Program Governance Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. failed to provide monthly financial statements to its Board of Directors for the March 17, 2022 and May 19, 2022 bimonthly meetings. RECOMMENDATION: Management should consider alternatives for preparing and reviewing monthly financial reports in the event financial management staff are unavailable in the future to perform these duties in a timely manner. CURRENT STATUS: Partially resolved. See finding 2023-005

2022-006 Federal Financial Reporting Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. did not provide accurate and timely submissions of its Federal Financial Report (SF-425) during FY 22. RECOMMENDATION: Management should develop and implement procedures to ensure that complete and accurate Federal Financial Reports are prepared, reviewed, and submitted in a timely manner. CURRENT STATUS: Not resolved. See finding 2023-006.

2023-004 Financial Management Fiscal year finding initially occurred: 2021 CONDITION: While performing our audit procedures for FY 23, there were numerous instances of revenue and expense transactions being miscoded between federal grant program funds and expenditures being misclassified on the balance sheet. In addition, reconciliations of grant revenues to grant expenditures were not being performed which could lead to over drawing of federal funds. CRITERIA: 2 CFR 1.200.302(b) Financial Management requires that the financial management system of a non-Federal entity must provide records that identify adequately the source and application of funds for federally funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. CAUSE: Reconciliation and review of detailed general ledger account balances were not performed in a timely manner during FY 23. EFFECT: Inaccurate and incomplete financial statement reports may be submitted to users of the financial statements, as well as grantor agencies. RECOMMENDATION: All detailed general ledger account balances should be reviewed and reconciled on a monthly basis to ensure complete and accurate financial information is provided to all users of the financial information.

2023-005 Program Governance Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. failed to provide accurate monthly financial statements to its Board of Directors during the fiscal year under audit. CRITERIA: Section 642(d)(2)(A) of the Head Start Act requires agencies to provide monthly financial statements to its Board of Directors CAUSE: The processing and preparation of monthly financial statements was delayed as a result of significant financial management staff turnover during the first quarter of FY 22, that carried over into accounting issues for the fiscal year ending 2023. EFFECT: The Board of Directors of Bossier Office of Community Services, Inc. may not have the complete and accurate financial information needed to make informed operational decisions. RECOMMENDATION: Management should consider alternatives for preparing and reviewing monthly financial reports in the event financial management staff are unavailable in the future to perform these duties in a timely manner.

2023-006 Federal Financial Reporting Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. did not provide accurate and timely submissions of its Federal Financial Report (SF-425) during FY 23. CRITERIA: 45 CFR section 75.303(b) – Internal Controls, requires non-Federal agencies to comply with Federal statutes, regulations, and the terms and conditions of all Federal awards. CAUSE: The processing and preparation of Federal Financial Reports (SF-425) was delayed as a result of significant financial management staff turnover during the first quarter of FY 22. During the fiscal year ending December 31, 2023, the reports were filed late, and as noted in finding 2023-004 contained significant errors. EFFECT: By not receiving complete and accurate grant program activity financial reports, the Federal grantor agency may be prevented from making timely, informed decisions about grant program operations. RECOMMENDATION: Management should develop and implement procedures to ensure that complete and accurate Federal Financial Reports are prepared, reviewed, and submitted in a timely manner.

Financial Management Fiscal year finding initially occurred: 2021 CONDITION: While performing our audit procedures for FY 22, there were numerous instances of revenue and expense transactions being miscoded between federal grant program funds and transactions being duplicated between funds. In addition, reconciliations of grant revenues to grant expenditures were not being performed which could lead to over drawing federal funds. CRITERIA: 2 CFR 1.200.302(b) Financial Management requires that the financial management system of a non-Federal entity must provide records that identify adequately the source and application of funds for federally funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. CAUSE: Reconciliation and review of detailed general ledger account balances were not performed in a timely manner during FY 22EFFECT: Inaccurate and incomplete financial statement reports may be submitted to users of the financial information. RECOMMENDATION: All detailed general ledger account balances should be reviewed and reconciled on a monthly basis to ensure complete and accurate financial information is provided to all users of the financial information.

Program Governance Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. failed to provide monthly financial statements to its Board of Directors for the March 17, 2022 and May 19, 2022 bimonthly meetings. CRITERIA: Section 642(d)(2)(A) of the Head Start Act requires agencies to provide monthly financial statements to its Board of Directors CAUSE: The processing and preparation of monthly financial statements was delayed as a result of significant financial management staff turnover during the first quarter of FY 22. EFFECT: The Board of Directors of Bossier Office of Community Services, Inc. may not have the complete and accurate financial information needed to make informed operational decisions. RECOMMENDATION: Management should consider alternatives for preparing and reviewing monthly financial reports in the event financial management staff are unavailable in the future to perform these duties in a timely manner.

Federal Financial Reporting Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. did not provide accurate and timely submissions of its Federal Financial Report (SF-425) during FY 22. CRITERIA: 45 CFR section 75.303(b) – Internal Controls, requires non-Federal agencies to comply with Federal statutes, regulations, and the terms and conditions of all Federal awards. CAUSE: The processing and preparation of Federal Financial Reports (SF-425) was delayed as a result of significant financial management staff turnover during the first quarter of FY 22. EFFECT: By not receiving complete and accurate grant program activity financial reports, the Federal grantor agency may be prevented from making timely, informed decisions about grant program operations. RECOMMENDATION: Management should develop and implement procedures to ensure that complete and accurate Federal Financial Reports are prepared, reviewed, and submitted in a timely manner.

Real Property Reporting Fiscal year finding initially occurred: 2022 CONDITION: Bossier Office of Community Services, Inc. did not file a Real Property Status Report (SF-429) for the grant year ending on January 31, 2022. CRITERIA: 45 CFR section 75.343 – Reporting on real property, requires non- Federal agencies to submit reports at least annually on the status of real property in which the Federal Government retains an interest, unless the Federal interest in real property extends fifteen years or longer. CAUSE: Preparation and filing of the Real Property Status Reports (SF-429) did not occur due to significant financial management staff turnover during the first quarter of FY 22. EFFECT: By not receiving complete and accurate grant program reports, the Federal grantor agency may be prevented from making timely, informed decisions about the grant program operations. RECOMMENDATION: Management should develop and implement procedures to ensure that complete and accurate Real Property Status Reports are prepared, reviewed, and submitted in a timely manner.

2021-001 ? Cost Reimbursement Not Reconciled To Eligible Expenditures Criteria: Cost reimbursement grants are reimbursed based on the expenditures for that grant. The total revenue and total expenditures for cost reimbursement grants should agree. Revenues and expenditures should be reconciled each month to ensure that all eligible expenditures are reimbursed and reported on the books. Condition: Several grant funds that were cost reimbursement grants ended the year with an excess or deficiency. The funds were not being monitored during the year to ensure that revenues agreed with expenditures in the general ledger. Cause: Revenue and expenditures posted in the general ledger were not reconciled during the year. Effect: Some cost reimbursement funds had ending fund balances or fund deficits when they should not have. Recommendation: General ledger revenue and expenditures for cost reimbursement funds should be reconciled each month to ensure that all funds have been requested and all corresponding expenditures have been reported in the general ledgers.

2021-002 ? Failure to Reconcile General Ledger Accounts Criteria: The Agency should reconcile accounts on a monthly basis. Condition: The Agency did not reconcile general ledger accounts during the year. Cause: Overstated account balances, i.e., account payables, retirement expense. Effect: This resulted in overstatement of balances in the general ledger. Recommendation: We recommend that the general ledger accounts are reconciled monthly.

2021-003 ? Misclassification of Expenses Criteria: 45 CFR sections 75.403, 75.404 and 75.405, (42 USC 9839(b), 45 CFR section 1301.32 (a) (4) All financial transactions are required to be properly classified. Condition: Auto related expenses were charged to local travel thereby overstating travel expenses. Certified real estate appraisal was classified as maintenance and repairs. Cause: Financial procedures were not followed for such expenditures to be properly classified and reported in books of original entry. Effect: Overstatement of travel expenses and understated auto repair expense. Recommendation: Properly classify transactions within the cost category line item within the general ledger. Review general ledger to ensure proper account classifications. Auto repair and maintenance should be recorded in auto expense.

2021-004 ? Failure to Capitalize Fixed Assets Criteria: 45 CFR sections 75.403, 75.404 and 75.405, (42 USC 9839(g). All financial transactions are required to be properly classified. Condition: Purchases were made for items that should have been capitalized but were expensed, i.e., buses. Cause: Improper recording of capital transactions Effect: Overstated expenses and understated assets. Recommendation: We recommend that all capital assets are properly recorded.

2021-005 ? Failure to Properly Record Revenue Transactions Criteria: 45 CFR sections 75.403, 75.404 and 75.405 All financial transactions are required to be properly classified. Condition: Transactions were being incorrectly recorded, i.e., debiting revenue and crediting receivable. Cause: Lack of knowledge, attention to detail, and review. Effect: Understated revenue and understated receivables. Recommendation: We recommend that transactions are properly recorded, reconciled, and reviewed.

2021-006 ? Cost Sharing or Matching Not Accurately Reported Criteria: 2 CFR 200.306 (b) (1). (i) (3) and 45 CFR 75.306 (b) states ?For all Federal awards, any shared costs or matching funds and all contributions, including cash and third party in-kind contributions, must be accepted as part of the non-Federal entity?s cost sharing or matching when such contributions meet all of the following criteria: Are verifiable from the non-Federal Entity?s records; (1) Are not included as contribution for any other Federal award; (2) Are necessary and reasonable for accomplishment of project or program objectives; (3) Are allowable under subpart E of this part; (4) Are not paid by the Federal Government under another Federal award, except where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to matching or cost sharing requirements of other Federal programs; (5) Are provided for in the approved budget when required by the HHS awarding agency; and (6) Conform to other provisions of this part, as applicable. 45 CFR 75.306 (e) states ?Volunteer services furnished by third-party professional and technical personnel, consultants, and other skilled and unskilled labor may be counted as cost sharing or matching if the service is an integral and necessary part of an approved project or program. Rates for third-party volunteer services must be consistent with those paid for similar work by the non-Federal entity. In those instances in which the required skills are not found in the non-Federal entity, rates must be consistent with those paid for similar work in the labor market in which the non-Federal entity competes for the kind of services involved. In either case, paid fringe benefits that are reasonable, necessary, allocable, and otherwise allowable may be included in the valuation. 45 CFR 75.306 (i) states ?The value of donated property must be determined in accordance with the usual accounting policies of the non-Federal entity, with the following qualifications: (1) The value of donated land and buildings must not exceed its fair market value at the time of donation to the non-Federal entity as established by an independent appraiser (e.g., certified real property appraiser or General Services Administration representative) and certified by a responsible official of the non-Federal entity as required by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, (42 U.S.C. 4601-4655) (Uniform Act) except as provided in the implementing regulations at 49 CFR part 24. (3) The value of donated space must not exceed the fair rental value of comparable space as established by an independent appraisal of comparable space and facilities in a privately-owned building in the same locality. Condition: The Agency did not provide proof of valuation rates used to calculate amounts claimed for third-party volunteer services for skills not found in the Agency. Also, as required by 45 CFR 75.306 (i) (3) a certified real estate appraiser conducted appraisals during February 2021, the rates used by the Agency were never updated to ensure that amounts claimed for donated space reflected the current apprised amounts. Cause: Some information reported by the Agency is not verifiable from the Agency?s records. There is lack of internal controls in verification, monitoring, and ensuring accuracy of financial records. Effect: Inaccurate financial reporting. Recommendation: We recommend that proof of valuation rates used for matching are readily available to verify all matching amounts claimed in financial reports. We also recommend that the Agency use current appraised values to report space inkind.

Internal Control testing over federal programs resulted in nine (9) of twenty-five (25) items having one or more of the following conditions noted: (1) Expense was signed as being authorized by the Executive Director and/or Finance Director after acquiring goods and/or check written; (2) Payment Authorization date on the Payment Request preceded the vendor invoice date by over two weeks; (3) Payment Authorization was not dated; (4) Expense was not authorized by proper personnel; (5) Expense approval was not dated by proper level of approval.

Cell phone expense was charged to local travel. Copier expenses were charged to classroom supplies. Insurance expense was charged to maintenance and repair.

Supporting documentation was not provided for one (1) out of twenty-five (25) items.