The Family Place

Auditor’s Recommendation: “We recommend management ensure sufficient staffing and oversight to abide by internal processes and procedures which require prior approval of expenditures and reports prior to drawdown or submission.” Management response: The Family Place has reviewed its award compliance procedures and concurs with the finding. During the period, responsible departments—including the finance and accounting and human resources teams—experienced unexpected turnover, a significant shortage of staffing, and a time reporting system conversion. As a result, certain compliance procedures were not performed consistently and timely, resulting in unintentional noncompliance with respect to allowable costs, cash management, and reporting controls. Corrective actions: The Executive Leadership Team reviewed the staffing needs of the finance and accounting and human resources teams in 2024. Hiring and training staff to achieve a full team was established as key objectives for the Executive Leadership Team in early 2025. As of September 2025, all vacant positions in both teams have either been filled or have been posted and are in active hiring process. The Chief Financial Officer and Chief of Human Resources have reviewed all internal procedures related to award compliance and will ensure that compliance is timely and well documented going forward. Specifically, the Chief Financial Officer will ensure that purchase orders, invoices, financial reports, and performance reports are completed, reviewed, and approved prior to submission and funding. These processes will have additional oversight by the Chief Executive Officer, with assistance from the newly established Compliance Department, and the Board of Trustees. Responsible parties for corrective actions: The Chief Financial Officer will have direct responsibility for award compliance and will be supported by Chief of Human Resources. The Chief Executive Officer, Tiffany A. Tate, with assistance from the newly established Compliance Department, will confirm that compliance occurs on a timely basis and prior to submission and funding. Separately, the Chief Financial Officer will report on progress to the Audit & Finance Committee of the Board of Trustees. The Executive Leadership Team will be responsible for ensuring the finance and accounting and human resources teams achieve and maintain full staffing levels. Anticipated completion date: The organization is actively implementing the corrective actions by ensuring sufficient staffing as mentioned above and training to ensure prior approval of all grant reports and drawdown requests. As of October 1, 2025, all grant reports will be appropriately approved and documented as such.

Auditor’s Recommendation: “We recommend management review all contracts with vendors and review the procurement policy to ensure compliance with the procurement and suspension and debarment standards within their policy and the Uniform Guidance.” Management response: The Family Place has reviewed its procurement and suspension/debarment procedures and concurs with the finding. During the period covered by the audit, staffing turnover and performance issues within departments responsible for procurement and grant compliance contributed to inconsistent application of policies and incomplete documentation. Since that time, The Family Place has replaced staff where needed due to performance problems and initiated training to ensure compliance and consistency with existing procurement policy for all organizational expenses of $10,000 or more. Corrective actions: The Executive Leadership Team has reviewed procurement responsibilities and clarified the roles of staff who approve or execute purchases and contracts. Hiring, training, and coaching were prioritized in early 2025 to address the identified deficiencies, and staff replacements have already been completed where necessary. Going forward: All staff responsible for procurement or contract approval will complete training on the Uniform Guidance procurement and suspension/debarment standards, including requirements for organizational purchases of $10,000 or more. Finance staff will review procurement documentation, vendor suspension/debarment verification, and contract approvals prior to payment to ensure full compliance with policy and federal regulations. These processes will receive additional oversight by the Chief Executive Officer, with assistance from the newly established Compliance Department, and the Board of Trustees. Responsible parties for corrective actions: The Chief Financial Officer will have direct responsibility for finance review of procurement documentation and vendor status verification prior to payment. The Chief Operations Officer will ensure that all required procurement and suspension/debarment checks are performed and documented. The Chief Executive Officer, Tiffany A. Tate, with assistance from the newly established Compliance Department, will confirm that compliance occurs on a timely basis. Separately, the Chief Financial Officer will report on progress to the Audit & Finance Committee of the Board of Trustees. Anticipated completion date: Refresher training of relevant staff and implementation of the strengthened procurement and suspension/debarment procedures has already been completed. Going forward, quarterly training will take place for team members directly involved in the procurement process.

Auditor’s Recommendation: “We recommend management implement internal controls to ensure financial reports are submitted accurately, with supporting documentation retained.” Management response: The Family Place has reviewed its financial reporting procedures and concurs with the finding. During the audit period, staffing deficiencies in grants management and compliance oversight contributed to supporting documentation of financial reports submitted not having been retained. In 2025, The Family Place created a new internal compliance department and hired a Grants Manager to provide dedicated oversight of grant drawdowns and reporting. These changes, together with updated procedures and training, are designed to ensure all future financial reports comply with Uniform Guidance requirements and supporting documentation is retained. Corrective actions: The Executive Leadership Team has prioritized strengthening reporting controls and has already implemented several measures: The newly hired Grants Manager and internal compliance department are responsible for reviewing and approving all financial reports to confirm that expenditures have been incurred and liquidated prior to request. Finance sta􀀁 and program managers are being trained on reporting requirements under 2 CFR 200.320. All financial reports will be reconciled to the general ledger with supporting documentation and will be reviewed by the Grants Manager and The Chief Financial Officer or Chief Executive Officer before submission. These processes will receive additional oversight by the Chief Financial Officer, the Chief Executive Officer, and the Board of Trustees. Responsible parties for corrective actions: The Grants Manager, working within the internal compliance department, will have direct responsibility for ensuring financial reports are accurate and supporting documentation is retained. The Chief Financial Officer will review and approve reconciliations prior to drawdown. The Chief Executive Officer, Tiffany A. Tate, with assistance from the newly established Compliance Department, will confirm timely compliance and will receive regular status updates. Separately, the Chief Financial Officer will report progress to the Audit & Finance Committee of the Board of Trustees. Anticipated completion date: The new internal compliance department and Grants Manager began operating together in September 2025. Full compliance monitoring is currently in place.