CRISIS INTERVENTION SERVICES

FINDING 2020-001: PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Program: Victim of Crime Act CFDA No.: 16.575 Compliance Requirement: Reporting Criteria: The Schedule of Expenditures of Federal Awards (SEFA) presented for the audit should be complete, reconciled to the general ledger, and provided at or before the start of the auditing process. Conditions: The SEFA presented for the audit required the addition of two programs as well four adjustments to other programs for the federal expenditures to be properly reported. Cause: It appears that insufficient time was devoted to the preparation of the SEFA prior to the audit. Effect: The SEFA has a very important role in an audit under the Uniform Guidance. Major program selection is based on amounts reported on the SEFA and material errors on the SEFA can lead to incorrect major program selection ? which in turn would disrupt and significantly extend the audit process. Context: Of the sixteen lines of program expenditures reported on the SEFA, six were in need of correction. One correction of $473,997 to the food program had the potential to change the major program selected. Recommendation: Procedures should be designed and implemented to insure that a complete and accurate SEFA is presented at the very beginning of the audit process.

FINDING 2020-002: FINANCIAL STATEMENT ADJUSTMENTS Criteria: Financial statements presented for an audit should require few, if any, adjustments to be in conformity with accounting standards generally accepted in the United States of America (accepted practice). Condition: We have proposed twelve (12) adjustments to the financial statements presented for the audit, including adjustments for contributions receivable, inventory, fixed assets, accounts payable, deferred revenue, contributions, grants, and in-kind donations. Context: The total dollar value of the proposed adjustments exceeds $1,000,000. Effect: Financial statements that require material adjustment are usually not reliable for monitoring and decision-making purposes. Cause: Sufficient accounting work was not completed prior to the start of audit fieldwork. Recommendation: We understand this was a unique year with the acquisition of three not-for-profit organizations and the ongoing pandemic making the preparation of accurate financial statements a difficult challenge. It may help in the future if an outside CPA with not-for-profit and Uniform Guidance experience is brought in at year end to assist with audit preparations.