Aster Aging, Inc.

Assistance Listing Number and Title: Aging Cluster: 93.044, 93.045, 93.053 Federal Agency: U.S. Department of Health and Human Services Federal Award Numbers: 2023-16-AST Grant period: July 1, 2022 - June 30, 2023 Significant deficiency: As discussed at finding 2023-001, internal controls should be in place to provide reasonable assurance that employee timesheets are appropriately approved by supervisors at the end of each pay period. We found four instances where time sheets were not approved by an appropriate supervisor. We recommend the Organization adhere to its policies and procedures for approving timesheets, reevaluate if more time should be provided for supervisor signoff, and provide ongoing training on the controls. No questioned costs. This is not a repeat finding.

Recommendation: As discussed at finding 2023-001, internal controls should be in place to provide reasonable assurance that employee timesheets are appropriately approved by supervisors at the end of each pay period. We recommend the Organization adhere to its policies and procedures for approving timesheets, reevaluate if more time should be provided for supervisor signoff, and provide ongoing training on the controls. Auditee response: Aster Aging acknowledges and agrees with this finding. We are in communication with our staff regarding the importance of supervisor approvals, and leadership is making it a priority to re-train employees on existing controls.

Assistance Listing Number and Title: Aging Cluster: 93.044, 93.045, 93.053 Federal Agency: U.S. Department of Health and Human Services Federal Award Numbers: 2023-16-AST Grant period: July 1, 2022 - June 30, 2023 Significant deficiency: As discussed at finding 2023-002, internal controls should be in place to provide adequate documentation of review of invoices before payment. We found eight instances where documentation on invoices or check request forms did not show supervisor approval. We recommend the Organization adhere to its policies and procedures for documentation of approval of disbursements. No questioned costs. This is not a repeat finding.

Recommendation: As discussed at finding 2023-002, internal controls should be in place to provide adequate documentation of review of invoices before payment. We recommend the Organization adhere to its policies and procedures for documentation of approval of disbursements. Auditee response: Aster Aging acknowledges and agrees with this finding. We are in communication with our staff regarding the importance of supervisor approvals, and leadership is making it a priority to re-train employees on existing controls. Aster updated its internal controls related to accounts payable / purchases / check requests / approvals as presented to the Board of Directors Finance Committee in August 2023. New procedures were added related to ACH approvals and payment and for updated security measures that now require advance uploading of check payment detail through the bank portal.

2021-002 ? Cost Allocations ? Significant Deficiency Federal Assistance Listing Number: 93.044, 93.045, and 93.053 Program Title and Federal Agency: Aging Cluster, U.S. Department of Health and Human Services Award Number: 2021-16-AST Award Year: 2021 Condition: Certain expenditures were not allocated in accordance with Aster?s approved, documented allocation plan. Criteria: The terms and conditions of Aster?s major federal program and 2CFR200 require that allocable costs be distributed based on the relative benefits received using a reasonable, documented basis. Cause: Aster did not have adequate procedures in place to ensure that either (a) costs were being allocated in accordance with the approved, documented allocation plan or (b) deviations from the allocation plan were documented and approved. Effect: Cost may be incorrectly charged to federal programs and then may be disallowed. Recommendation: Aster should implement procedures to review costs to ensure they are allocated in accordance with the approved, documented allocation plan and that any deviations from the allocation plan are documented and approved. Questioned Costs and Context: A statistically valid sample of 60 disbursements totaling approximately $40,700 was selected from the population of expenditures of federal awards totaling approximately $902,600. The test found expenditures that were not in compliance with questioned costs that totaled approximately $1,890. Views of Responsible Officials and Planned Corrective Action: Aster agrees with the finding, which occurred during the rapidly transitioning pandemic period, when the need for home delivered meals increased significantly beyond projected service levels and allocations. Recommended procedures have been implemented.

Aster Aging, Inc. & Subsidiary respectfully submits the following corrective action plan for the fiscal year ended June 30, 2021: Name and address of independent public accounting firm: Schmidt Westergard & Company, PLLC, 77 West University Drive, Mesa, Arizona 85201 Audit period: FY-21 (July 1, 2020 ? June 30, 2021) The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDIT ? One Significant Deficiency Finding 2021-002: Cost Allocations ? Significant Deficiency Aging Cluster, U.S. Department of Health and Human Services (93.044, 93.045, 93.053) Recommendation: Aster should implement procedures to review costs to ensure they are allocated in accordance with the approved, documented allocation plan and that any deviations from the allocation plan are documented and approved. Action Taken: We concur with this recommendation, and it was implemented September 1, 2021. Management developed an enhanced internal allocation plan that incorporates both the approved, documented award allocation plan. On a monthly basis, Finance reviews incurred expenses and allocates them in proportion to the approved plan. Any deviations from the plan will be made known to the funding agency and approval will be documented. If there are questions regarding this plan, please contact Craig Moeller, Finance Director at 480-964-9014, cmoeller@asteraz.org.