Verde Valley Sanctuary, Inc.Non-Profit

FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS Finding Number: 2022-001 Repeat Finding: No Program Names/Assistance Listing Titles: Assistance Listing Numbers: Federal Award Numbers: Questioned Costs: Crime Victim Assistance 16.575 2018-V2-GX-0012 N/A Family Violence Prevention and Services/Domestic Violence Shelter and Supportive Services 93.671 ADHS17-185594 N/A Federal Agency: U.S. Department of Justice/U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Department of Public Safety/Arizona Department of Health Services Questioned Costs: N/A Type of Finding: Significant Deficiency Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles CRITERIA Uniform Guidance (CFR 200.510(b)) requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with laws, regulations and program requirements. The Organization must ensure expenses reported on the Schedule of Expenditures of Federal Awards is properly supported. CONDITION The Organization lacked sufficient internal controls over tracking expenses for its federal grants. CAUSE Turnover in key accounting positions led to an inconsistent methodology of classifying expenses throughout the year. EFFECT Amounts reported on the Schedule of Expenditures of Federal Awards were not fully supported by the financial reporting software. CONTEXT The sample was not intended to be, and was not, a statistically valid sample. Federal expenses reported in the financial reporting software did not agree with amounts on the Schedule of Expenditures of Federal Awards. The amounts reported on the Schedule of Expenditures of Federal Awards are total reimbursements received. RECOMMENDATION The Organization should ensure policies and procedures for tracking federal grant expenses are accurate. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Finding Number: 2021-001 Repeat Finding: Yes, 2020-002 Program Name/Assistance Listing Title: Crime Victim Assistance Assistance Listing Number: 16.575 Federal Agency: U.S. Department of Justice Federal Award Number: 2018-V2-GX-0012 Pass-Through Agency: Arizona Department of Public Safety Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting CRITERIA The Organization is required to submit the Performance Measures Report to report quarterly victim service and performance measure activities. Quarterly reports are due no later than 30 days following the end of each quarter. Additionally, performance data reported should be supported by adequate documentation. CONDITION The Organization did not maintain adequate documentation to support data on the Performance Measures Report. CAUSE Turnover in key positions as well as a change in reporting software resulted in a loss of supporting documentation. EFFECT The Organization was not always in compliance with Federal regulations and grantor guidelines. CONTEXT The sample was not intended to be, and was not, a statistically valid sample. ? The Organization did not maintain documentation to support the information on its Quarterly Statistical and Programmatic Reports for fiscal year 2021. RECOMMENDATION The Organization should implement procedures to ensure documentation supporting the data reported on the Performance Measures Reports is retained. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Finding Number: 2020-001 Repeat Finding: No Program Name/CFDA Title: Crime Victim Assistance CFDA Number: 16.575 Federal Agency: U.S Department of Justice Pass-Through Agency: Arizona Department of Public Safety Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Procurement, Suspension, and Debarment CRITERIA Non-federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. Uniform Guidance requires that purchases under the Simplified Acquisition Threshold of $250,000 follow the requirements for small purchase procedures. In addition, procurement by noncompetitive proposals may be used when one or more of the following circumstances apply: (1) The item is available only from a single source; (2) The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; (3) The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity; or (4) After solicitation of a number of sources, competition is determined inadequate. CONDITION The Organization did not have Board adopted policies over procurement with federal dollars. CAUSE The Organization did not exceed the federal procurement threshold of $10,000 and therefore did not formalize procurement procedures. EFFECT The Organization was not in compliance with the Uniform Guidance requirements under 2 CFR Section 200.318. CONTEXT The sample was not intended to be, and was not, a statistically valid sample. During our review of procurement, we noted the following: ? The Organization did not have any formal written procedures over procurement. ? For the two purchases reviewed over $10,000, the Organization did not properly designate the vendors as sole source. RECOMMENDATION The Organization should develop policies over procurement that adhere to Uniform Guidance requirements under 2 CFR Section 200.318 through 326. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Finding Number: 2020-002 Repeat Finding: No Program Name/CFDA Title: Crime Victim Assistance CFDA Number: 16.575 Federal Agency: U.S Department of Justice Pass-Through Agency: Arizona Department of Public Safety Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting CRITERIA The Organization is required to submit the Performance Measures Report to report quarterly victim service and performance measure activities. Quarterly reports are due no later than 30 days following the end of each quarter. Additionally, performance data reported should be supported by adequate documentation. CONDITION The Organization did not maintain adequate documentation to support data on the Performance Measures Report. CAUSE The Organization did not always have an adequate system in place to track performance data resulting in the recalculation of the figures present, and turnover in key positions. EFFECT The Organization was not always in compliance with Federal regulations and grantor guidelines. CONTEXT The sample was not intended to be, and was not, a statistically valid sample. During our review of the Organization?s Performance Measures Reports, we noted the following: ? The April 2020 ? June 2020 quarterly performance report for the Crime Victim Assistance ? Shelter grant was not submitted timely. ? Total new and continuing clients per the April 2020 ? June 2020 quarterly performance report for the Crime Victim Assistance ? Outreach grant did not agree to supporting documentation by one. RECOMMENDATION The Organization should establish and implement procedures for the retention of documentation to support data reported on the Performance Measures Reports. In addition, the Organization should ensure all reports are submitted timely. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Finding 2019 - 001 CFDA 16.575 Crime Victim Assistance Procurement Finding Type: Significant Deficiency Criteria: The organization is required to comply with procurement processes standard for federal financial assistance recipients, specifically with respect to verifying vendors are not suspended or disbarred from federal contracts. Condition: Although no disbarred vendors were contracted with, the organization could not provide documentation that appropriate back ground checks were made. Cause: As the organization was new to the requirements of the Uniform Guidance, personnel were not familiar with federal regulations. Effect: Without adequate controls over procurement, suspended or disbarred vendors could be contracted with. Recommendation: Written procedures should be modified to include appropriate back ground checks. View of Responsible Officials: Staff were generally unaware of the federal requirements. Procedures have been appropriately modified.

Finding 2019 - 002 CFDA 16.575 Crime Victim Assistance Reporting, Schedule of Expenditures of Federal Awards Finding Type: Significant Deficiency in Internal Control Over Compliance Criteria: The organization is required to prepare a Schedule of Expenditures of Federal Awards in compliance with federal standards. Condition: Immaterial errors in amounts of federal awards were noted in preliminary drafts of the SEFA. Cause: The organization's internal controls over preparation of the SEFA are not documented in writing. Effect: Inadequate documentation of controls over this area of compliance result in a reasonable possibility that the organization would not be able to detect and correct federal award amounts. Recommendation: Verify federal award amounts directly with funding agencies. View of Responsible Officials: Procedures will be modified accordingly.