TRI-COUNTY COMMUNITY ACTION, INC.

Finding Number: 2024-001 Repeat Finding: No Type of Finding: Material Weakness Description: Internal Control over Financial Reporting

Condition: During the audit of the April 30, 2024 financial statements, Wipfli proposed a restatement to the beginning net assets with and without donor restrictions and several adjusting journal entries to properly record accrued payroll, refundable advances, and grant revenue and expenses which we deem to be material in relation to the financial statements. We noted that not all accounts were consistently reconciled on a timely basis and adjusting journal entries are not reviewed by someone other than the preparer. Since the internal controls of the Organization did not detect and record the adjustments described above prior to the audit, a material weakness exists in the Organization's internal control over financial reporting and the preparation of the financial statements in accordance with accounting principles generally accepted in the United States (GAAP).

Criteria: Internal controls are effective if they are properly designed and implemented to prevent or detect account misstatements prior to the audit.

Cause: The internal controls of the Organization were not effective in preventing or detecting and correcting the misstatements described above prior to the audit.

Effect: As a result of the financial reporting matter identified in the condition paragraph, a material weakness exists in the Organization's internal control over financial reporting.

Recommendation: We recommend the Organization implement procedures, such as timely reconciling of accounts and review of all reconciliations and adjusting journal entries by someone other than the preparer, to provide sufficient internal control over financial reporting so all necessary transactions are recorded in accordance with GAAP.

View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding Number: 2024-002 Repeat Finding: No Type of Finding: Material Weakness in Internal Control and Material Noncompliance Description: Data Collection Form Late Filing Federal Programs: AL#93.568 - Low Income Home Energy Assistance Program - Award numbers: 58230003849, 58240004039 and 58930004002 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Reporting

Condition: The Organization did not submit the data collection form and reporting package for the year ended April 30, 2024 to the Federal Audit Clearinghouse in a timely manner.

Criteria: The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditor's report or nine months after the end of the audit period.

Cause: The submission of the data collection form was delayed due to insufficient audit preparation. The lack of readiness for the audit resulted in unforeseen complications, which ultimately caused the delay in completing the audit and submitting the required documentation.

Effect: The Organization was not in compliance with audit submission requirements, resulting in material noncompliance and a material weakness in internal controls over compliance.

Recommendation: We recommend the Organization implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse.

View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.