Silver Key Senior Services, Inc.

Criteria: According to 2 CFR 200.516, recipients of federal awards must maintain effective internal control over the federal award that provides reasonable assurance that the recipient is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. This includes maintaining adequate documentation of all monitoring controls and approvals. As part of internal controls over compliance and monitoring, the CFO reviews and approves reports, summarized billings, and expense information from program managers. Condition: During our audit, we found that the monitoring control for program expenditures was not documented as having been performed for all program expenditures. Additionally, documentation of the CFO's review and approval was not maintained for all expenses submitted for reimbursement during the year. Cause: The reportable finding was due to insufficient documentation practices and lack of adherence to established procedures for monitoring and approval of program expenditures. Documentation of CFO review and approval was not maintained for all expenses submitted for reimbursement during the year. Effect: As a result of this deficiency, there is an increased risk that unapproved or improper expenses could be submitted for reimbursement, potentially leading to non-compliance with federal requirements. The lack of monitoring, review, and approval is a reportable audit finding in accordance with 2 CFR 200.516. Recommendation: We recommend that policies, procedures, and controls over program compliance be followed and documented for all applicable transactions and expenditures. View of Responsible Officials: Management concurs with the auditors.