CRISIS ASSISTANCE CENTER, INC. DBA COMMUNITY ASSISTANCE CENTERNon-Profit

Finding #2022-003 ? Material Weakness and Other Noncompliance Applicable federal program: U. S. Department of the Treasury Passed through Montgomery County, Texas COVID-19 ? Emergency Rental Assistance Program Assistance Listing #: 21.023 Contract Number: CARES ERA Contract Year: 07/01/21 ? 6/30/22 Criteria: Reporting ? Management of Community Assistance Center is responsible for establishing and maintaining an effective system of internal control over government grant reporting to ensure all costs are allowable and reported in the correct period and that government grant revenue and receivables are properly reflected in the financial statements in accordance with generally accepted accounting principles. This finding is a repeat of prior year finding #2021-002. Condition and context: 2 of 4 CARES ERA grant billings tested showed no indication of reconciliation to underlying data. In each case, the amount of the billings were lower than the amount of expenses in the general ledger. Cause and effect: Failure to adequately establish and maintain effective internal controls over grant billings could result in financial statement errors and reporting noncompliance. Questioned costs: None Recommendation: Same as finding #2022-002. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2021-002 ? Material Weakness and Other Noncompliance Applicable federal program: U. S. Department of the Treasury Passed through Montgomery County, Texas COVID-19 ? Emergency Rental Assistance Program Assistance Listing #: 21.023 Contract Number: CARES ERA Contract Year: 07/01/21 ? 6/30/22 Criteria: Reporting ? Management of Community Assistance Center is responsible for establishing and maintaining an effective system of internal control over government grant reporting to ensure all costs are allowable and reported in the correct period and that government grant revenue and receivables are properly reflected in the financial statements in accordance with generally accepted accounting principles. Condition and context: 1 of 2 CARES ERA grant billings tested showed no indication of reconciliation to the underlying data. On the December 2021 monthly billing, we noted that the amount billed was $11,881 lower than the underlying support for this billing resulting in a potential underbilling. Cause and effect: Failure to adequately establish and maintain effective internal controls over grant billings could result in financial statement errors and reporting noncompliance. Questioned costs: None Recommendation: Same as finding #2021-001. Views of responsible officials and planned corrective actions: Management agrees with the finding. See

Finding #2020-002 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of the Treasury Passed through Montgomery County, Texas Assistance Listing #: 21.019 ? COVID-19-Coronavirus Relief Fund Contract Number: P044160196 Contract Year: 03/01/20 ? 12/31/20 Criteria: Allowable costs ? Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.430 requires that charges to awards for salaries and wages be based on records that accurately reflect the work performed. These records must 1) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable and properly allocated; 2) reasonably reflect the total activity for which the employee is compensated; 3) comply with the established accounting policies and practices of the agency; and 4) support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one activity. Community Assistance Center?s procedures for allocating payroll costs are not sufficient to ensure that costs are appropriately allocated amongst federal and other funding streams. Condition and context: There are no written policies and procedures related to the process of preparing and compiling time studies or other actual time and effort inputs utilized for allocating payroll costs. Salaries for three of six employees were allocated based on grant budgets or on targets of time and effort spent on each grant program rather than based on personnel activity reports or other actual time and effort inputs. Cause: The finding occurred as a result of the lack of written policies and procedures for preparing and compiling time studies or personnel activity reports, and inappropriate procedures for allocating based on budgets or targets amongst federal and other funding streams. Effect: Allocation of payroll costs may not properly reflect the time and effort expended on the specific federal program. Questioned costs: $13,805 Recommendation: Community Assistance Center should establish written policies and procedures and provide training to its employees on the policies and procedures for preparing and compiling personnel activity reports or time studies in accordance with Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, ?200.430. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.