Catholic Charities Community Services, Inc.

Item: 2025-001 Assistance Listing Number: 64.024 Program: VA Homeless Providers Grant and Per Diem Program Federal Agency: U.S. Department of Veteran Affairs Pass-Through Agencies: n/a Contract/Pass-Through Grantor Identifying Number: CCAZ999-4582-649-TP-24 Award Year: October 2021 to September 2023; October 2023 to September 2026 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit per diem financial reports requesting payment based on the units of service provided multiplied by a per diem rate as specified in the grant agreement. Condition: In preparation of the per diem financial reports, the incorrect per diem rate was used to calculate the amount requested for payment for three reports. Questioned Costs: n/a Context: In a population of 15 per diem financial reports, we conducted a non-statistical sample of four reports. In our sample of four, we noted that the incorrect per diem rate was utilized for one financial report. Based on our review of the entire population of per diem reports and the contracted per diem rates, we noted that in accordance with the contract, the per diem rate for contract CCAZ999-4582-649-TP-24 was increased from $84.15 to $89.54 effective February 2024. However, the Organization’s financial reports for the period July 2024 – September 2024 used an incorrect per diem rate of $84.09. As a result of the Organization billing at the incorrect per diem rate, the funding agency was underbilled $894. Effect: As a result of the Organization billing at the incorrect per diem rate, the funding agency was underbilled $894. This is deemed to be a material weakness in internal control over compliance. Cause: The Organization did not have a process in place to ensure updates to the per diem rates were identified timely and properly utilized. Additionally, the Organization did not have a sufficient supervisory review process implemented for the reports submitted to the granting agency. Identification as a Repeat Finding: Repeat finding. See 2024-005 Recommendation: The Organization should implement additional controls to ensure updates to the per diem rates are identified timely and properly used. Additionally, the Organization should implement additional supervisory review processes for reports submitted to the granting agency. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

Item: 2025-002 Assistance Listing Number: 93.558 Program: Temporary Assistance for Needy Families Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Department of Economic Security Contract/Pass-Through Grantor Identifying Number: CTR062282 Award Year: July 2024 to June 2025 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit monthly performance reports. Condition: Of the 22 reports tested, 11 were not submitted timely. Questioned Costs: n/a Context: In a population of 54 performance reports, we conducted a non-statistical sample of 22 reports. Of the 22 reports tested, 11 were not submitted timely. Effect: The system of internal controls was not properly implemented to ensure reports were submitted timely to the granting agency. This is deemed to be a material weakness in internal control over compliance. Cause: The Organization did not have a process in place to ensure reports were submitted timely. Additionally, the Organization did not have a sufficient supervisory review process implemented for the reports submitted to the granting agency. Identification as a Repeat Finding: Not a repeat finding Recommendation: The Organization should implement additional controls to ensure reports are submitted to the granting agency in accordance with established due dates. Proof of timely submission should be retained. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

Item: 2024-002 Assistance Listing Number: 93.566 Program: Refugee and Entrant Assistance - State/Replacement Designee Administered Programs Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Department of Economic Security Pass-Through Grantor Identifying Number: CTR054457/CTR069374, CTR062399, CTR061944, CTR040852, CTR060933 Award Year: October 2022 to September 2023; October 2023 to September 2024 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit monthly requests for reimbursement. Controls should be in place to ensure review and approval of these monthly reports prior to submission to the granting agency. Condition: For seven reports tested, there was no evidence of management review or approval of the reports prior to submission to the granting agency. Questioned Costs: n/a Context: In a population of 68 requests for reimbursement reports, we conducted a non-statistical sample of seven reports. For all seven reports tested, we noted no evidence of management review or approval of the reports prior to submission to the granting agency. Effect: The system of internal controls was not properly implemented to ensure review and approval of the reports prior to submission to the granting agency. This is deemed to be a material weakness in internal control over compliance. Cause: The Organization did not have a supervisory review process implemented for financial reports submitted to the granting agency. Identification as a Repeat Finding: Not a repeat finding Recommendation: The Organization should implement additional controls to ensure reports are reviewed and approved prior to submission to the granting agency. This review and approval should be clearly documented. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

Item: 2024-003 Assistance Listing Number: 64.033 Program: VA Supportive Services for Veteran Families Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Agencies: n/a Contract Number: 2014-AZ-160-22, 2014 AZ-SS Award Year: October 2022 to September 2023; October 2023 to September 2024 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit monthly requests for reimbursement. Controls should be in place to ensure review and approval of these monthly reports prior to submission to the granting agency. Condition: For four reports tested, there was no evidence of management review or approval of the reports prior to submission to the granting agency. Questioned Costs: n/a Context: In a population of 13 financial reports, we conducted a non-statistical sample of four reports. For all four reports tested, we noted no evidence of management review or approval of the reports prior to submission to the granting agency. Effect: The system of internal controls was not properly implemented to ensure review and approval of the reports prior to submission to the granting agency. This is deemed to be a material weakness in internal control over compliance. Cause: The Organization did not have a supervisory review process implemented for financial reports submitted to the granting agency. Identification as a Repeat Finding: Not a repeat finding Recommendation: The Organization should implement additional controls to ensure reports are reviewed and approved prior to submission to the granting agency. This review and approval should be clearly documented. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

Item: 2024-004 Assistance Listing Number: 64.024 Program: VA Homeless Providers Grant and Per Diem Program Federal Agency: U.S. Department of Veteran Services Pass-Through Agencies: n/a Contract Number: CCAZ999-2191-649-CM-24 Award Year: October 2021 to September 2023; October 2023 to September 2026 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit monthly requests for reimbursement. Controls should be in place to ensure review and approval of these monthly reports prior to submission to the granting agency. Condition: Of the nine reports tested, there was no evidence of management review or approval for one of the reports prior to submission to the granting agency. Questioned Costs: n/a Context: In a population of 27 financial reports, we conducted a non-statistical sample of nine reports. Of the nine reports tested, we noted no evidence of management review or approval for one report prior to submission to the granting agency. Effect: The system of internal controls was not properly implemented to ensure review and approval of the reports prior to submission to the granting agency. This is deemed to be a material weakness in internal control over compliance. Cause: The Organization did not have a supervisory review process implemented for financial reports submitted to the granting agency. Identification as a Repeat Finding: Not a repeat finding Recommendation: The Organization should implement additional controls to ensure reports are reviewed and approved prior to submission to the granting agency. This review and approval should be clearly documented. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

Item: 2024-005 Assistance Listing Number: 64.024 Program: VA Homeless Providers Grant and Per Diem Program Federal Agency: U.S. Department of Veteran Services Pass-Through Agencies: n/a Contract Number: CCAZ999-4582-649-TP-24 Award Year: October 2021 to September 2023; October 2023 to September 2026 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit per diem financial reports requesting payment based on the units of service provided multiplied by a per diem rate as specified in the grant agreement. Condition: In preparation of the per diem financial reports, the incorrect per diem rate was used to calculate the amount requested for payment for two reports. Questioned Costs: n/a Context: In a population of 24 per diem financial reports, we conducted a non-statistical sample of eight reports. In our sample of eight, we noted that the incorrect per diem rate was utilized for two financial reports. Based on our review of the entire population of per diem reports and the contracted per diem rates, we noted that in accordance with the contract, the per diem rate was increased from $84.15 to $89.54 effective February 2024. However, the Organization’s financial reports for the period February 2024 – June 2024 used an incorrect per diem rate of $84.09. As a result of the Organization billing at the incorrect per diem rate, the funding agency was underbilled $2,616. Effect: As a result of the Organization billing at the incorrect per diem rate, the funding agency was underbilled $2,616. This is deemed to be a material weakness in internal control over compliance. Cause: The Organization did not have a process in place to ensure updates to the per diem rates were identified timely and properly utilized. Additionally, the Organization did not have a sufficient supervisory review process implemented for the reports submitted to the granting agency. Identification as a Repeat Finding: Not a repeat finding Recommendation: The Organization should implement additional controls to ensure updates to the per diem rates are identified timely. The Organization should also implement additional controls to ensure reports are reviewed and approved prior to submission to the granting agency. This review and approval should be clearly documented. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.