PIMA PREVENTION PARTNERSHIP AND AFFILIATES

FINDINGS AND QUESTIONED COSTS - FINANCIAL STATEMENT AUDIT The following represents a significant deficiency in internal controls in accordance with Government Auditing Standards: Finding: 2019-001 Program: Government Auditing Standards and CFDA #s 84.184 and 93.060 Questioned Cost: None Condition: For the year audited, numerous and material audit adjustments were required for the financial statement to be correct at year-end. Thus, the unadjusted general ledger was not materially correct under accounting principles generally accepted in the United States of America prior to the beginning of the audit. Criteria: Recording a significant number or material adjustments during the audit is a strong indicator of a control deficiency that an organization has ineffective controls over the preparation of the underlying general ledger which is used to prepare the consolidated financial statements, including the notes. It is critical for an organization to have appropriate processes in place to properly adjust the general ledger in a timely manner throughout the year and especially at year end, prior to audit fieldwork, as part of the year-end closing process, as well as to maintain the general ledger in accordance with generally accepted accounting principles throughout the year. Cause and effect: The internal control system for financial reporting appeared to be less than optimal in its effectiveness. The Organization changed to a different accounting software program and instituted a new chart of accounts on July 1, 2017 and changed to a new chart of accounts again effective July 1, 2018. Inconsistent staff knowledge in accounting, including the person filling the assistant controller position, and the change in the chart of accounts impacted the system. In addition, key account reconciliation such as bank accounts, accounts receivable, and accounts payable were not performed during the year. This resulted in significant errors in the general ledger that were not resolved within the normal course of business. Recommendation: The Organization should assign a person with suitable skills, knowledge, and experience to review and revise its system of internal controls over financial reporting to ensure that adequate processes are in place to properly adjust the general ledger throughout the year and especially at year end, prior to audit fieldwork, as part of the year-end closing process and perform ongoing monitoring of the system. This will result in a correctly stated pre-audit trial balance and appropriate internal financial statements prepared under generally accepted accounting principles for use by management, the Finance Committee, and the Board of Directors throughout the year. Views of Responsible Officials and Planned Corrective Actions: We have identified a person with suitable skills, knowledge, and experience to fulfill the role of controller internally in order to implement processes to ensure timely and accurate monthly and year end account reconciliation and financial statement preparation. Additionally, the parent company (COPE) Finance Director and CEO will continue to work to incorporate PPP finance staff into parent company and use the system of controls in place there. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Finding 2019-001 above also represents a significant deficiency in internal controls over all major programs in accordance with the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

CORRECTIVE ACTION PLAN June 16, 2020 Department of Education Pima Prevention Partnership and Affiliates, respectfully submits the following corrective action plan for the year ended June 30, 2019. Name and address of independent public accounting firm: Addington & Associates, PLLC 5431 N. Oracle Rd., Ste. 101 Tucson, AZ 85704 Audit period: Year ended June 30, 2019 The finding from the June 30, 2019 schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS?FINANCIAL STATEMENT AUDIT INTERNAL CONTROL FINDING 2019-001. Audit adjusting entries Programs: Government Auditing Standards and CFDA #s 84.184 and 93.060 Condition: For the year audited, numerous and material audit adjustments were required for the financial statement to be correct at year-end. Thus, the unadjusted general ledger was not materially correct under accounting principles generally accepted in the United States of America prior to the beginning of the audit. Recommendation: The auditor recommended that The Organization should assign a person with suitable skills, knowledge, and experience to review and revise its system of internal controls over financial reporting to ensure that adequate processes are in place to properly adjust the general ledger throughout the year and especially at year end, prior to audit fieldwork, as part of the year-end closing process and perform ongoing monitoring of the system. This will result in a correctly stated pre-audit trial balance and appropriate internal financial statements prepared under generally accepted accounting principles for use by management, the Finance Committee, and the Board of Directors throughout the year. Views of Responsible Officials and Corrective Actions: We agree with the finding and we have identified a person with suitable skills, knowledge, and experience to fulfill the role of controller internally in order to implement processes to ensure timely and accurate monthly and year end account reconciliations and financial statement preparation, effective subsequent to year end. Additionally, the parent company (COPE) Finance Director and CEO will continue to work to incorporate PPP finance staff into parent company and use the system of controls in place there. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS Finding 2019-001 above also represents a significant deficiency in internal controls over all major programs in accordance with the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). If the Department of Education has questions regarding this plan, please call Rodney Cook, Chief Executive Officer at 520-792-3293. Sincerely yours, Rod Cook Chief Executive Officer