Audit 22884

FY End
2022-06-30
Total Expended
$828,222
Findings
16
Programs
5
Organization: Youth Emergency Services INC (NE)
Year: 2022 Accepted: 2023-08-06

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
20991 2022-003 Material Weakness - B
20992 2022-004 Material Weakness - B
20993 2022-005 Material Weakness - C
20994 2022-006 Material Weakness - L
20995 2022-003 Material Weakness - B
20996 2022-004 Material Weakness - B
20997 2022-005 Material Weakness - C
20998 2022-006 Material Weakness - L
597433 2022-003 Material Weakness - B
597434 2022-004 Material Weakness - B
597435 2022-005 Material Weakness - C
597436 2022-006 Material Weakness - L
597437 2022-003 Material Weakness - B
597438 2022-004 Material Weakness - B
597439 2022-005 Material Weakness - C
597440 2022-006 Material Weakness - L

Programs

ALN Program Spent Major Findings
93.550 Transitional Living for Homeless Youth $193,397 Yes 4
14.231 Emergency Solutions Grant Program $171,967 - 0
14.267 Continuum of Care Program $122,765 - 0
14.218 Community Development Block Grants/entitlement Grants $80,491 - 0
16.320 Services for Trafficking Victims $52,634 - 0

Contacts

Name Title Type
JQTVN3NB6A29 Kalisha Reed Auditee
4023455187 Justin Frauendorfer Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Youth Emergency Services, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost of Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements. The Organization did not elect to use the 10% de minimis indirect cost rate, as allowed under the Uniform Guidance, but instead the Organization used their negotiated indirect cost rate for the year. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Criteria: Cost principles in 2 CFR part 200, subpart E (Cost Principles), prescribe general criteria costs follow to be considered allowable under federal awards. The criteria state costs must be necessary and reasonable for the performance of the federal award, be allocable, and be adequately documented. Condition: While all costs tested were determined to be necessary and reasonable for the performance of the federal award, federal expenditures were not allocable and adequately documented leading to a materially misstated schedule of expenditures of federal awards. Cause: Due to the lack of accounting expertise and transition in the accounting and finance roles during the year, there was a lack of accounting for federal awards leading to a materially misstated schedule of expenditures of federal awards being presented for audit. The schedule of expenditures of federal awards was corrected, but not until significantly after the close of the fiscal year. Effect: The lack of internal controls surrounding allocating costs could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management separately track and monitor federal expenditures from non-federal expenditures in their accounting system. Organization Response: Management agrees with this finding.
Criteria: Uniform Guidance requires that costs must be adequately documented and retained to demonstrate that only costs for allowable activities or allowable costs are charged to federal programs. Documentation should also support that expenditures are incurred during the period of availability and prior to submission for reimbursement. Condition: For the Transitional Living for Homeless Youth program, support could not be provided for costs charged to the program to support the allowability of costs and activities and whether the charges were incurred during the appropriate period of performance. Out of the 40 transactions tested for this program, adequate supporting documentation could not be provided for 7 transactions. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support costs charged to federal programs. Effect: Certain costs could not be supported as allowable, incurred during the appropriate period of performance, or incurred prior to submission for reimbursement that were charged to federal programs. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.
Criteria: Per 2 CFR section 200.305(b)(5), the entity is required to pay for the costs before the date of the reimbursement request. Condition: The Organization was unable to provide adequate audit support for reimbursement requests during the fiscal year under audit. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support reimbursement requests. Effect: The lack of internal controls surrounding the cash management compliance requirement could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.
Criteria: Reporting is a continuing compliance requirement that requires certain reports to be filed throughout the year to maintain program compliance. In this instance, the Transitional Living for Homeless Youth program is required to file quarterly Federal Financial Reports. Condition: Support could not be provided as evidence that the required reports were filed. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to show the necessary reports were filed. Effect: The lack of internal controls surrounding the reporting compliance requirement could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.
Criteria: Cost principles in 2 CFR part 200, subpart E (Cost Principles), prescribe general criteria costs follow to be considered allowable under federal awards. The criteria state costs must be necessary and reasonable for the performance of the federal award, be allocable, and be adequately documented. Condition: While all costs tested were determined to be necessary and reasonable for the performance of the federal award, federal expenditures were not allocable and adequately documented leading to a materially misstated schedule of expenditures of federal awards. Cause: Due to the lack of accounting expertise and transition in the accounting and finance roles during the year, there was a lack of accounting for federal awards leading to a materially misstated schedule of expenditures of federal awards being presented for audit. The schedule of expenditures of federal awards was corrected, but not until significantly after the close of the fiscal year. Effect: The lack of internal controls surrounding allocating costs could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management separately track and monitor federal expenditures from non-federal expenditures in their accounting system. Organization Response: Management agrees with this finding.
Criteria: Uniform Guidance requires that costs must be adequately documented and retained to demonstrate that only costs for allowable activities or allowable costs are charged to federal programs. Documentation should also support that expenditures are incurred during the period of availability and prior to submission for reimbursement. Condition: For the Transitional Living for Homeless Youth program, support could not be provided for costs charged to the program to support the allowability of costs and activities and whether the charges were incurred during the appropriate period of performance. Out of the 40 transactions tested for this program, adequate supporting documentation could not be provided for 7 transactions. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support costs charged to federal programs. Effect: Certain costs could not be supported as allowable, incurred during the appropriate period of performance, or incurred prior to submission for reimbursement that were charged to federal programs. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.
Criteria: Per 2 CFR section 200.305(b)(5), the entity is required to pay for the costs before the date of the reimbursement request. Condition: The Organization was unable to provide adequate audit support for reimbursement requests during the fiscal year under audit. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support reimbursement requests. Effect: The lack of internal controls surrounding the cash management compliance requirement could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.
Criteria: Reporting is a continuing compliance requirement that requires certain reports to be filed throughout the year to maintain program compliance. In this instance, the Transitional Living for Homeless Youth program is required to file quarterly Federal Financial Reports. Condition: Support could not be provided as evidence that the required reports were filed. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to show the necessary reports were filed. Effect: The lack of internal controls surrounding the reporting compliance requirement could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.
Criteria: Cost principles in 2 CFR part 200, subpart E (Cost Principles), prescribe general criteria costs follow to be considered allowable under federal awards. The criteria state costs must be necessary and reasonable for the performance of the federal award, be allocable, and be adequately documented. Condition: While all costs tested were determined to be necessary and reasonable for the performance of the federal award, federal expenditures were not allocable and adequately documented leading to a materially misstated schedule of expenditures of federal awards. Cause: Due to the lack of accounting expertise and transition in the accounting and finance roles during the year, there was a lack of accounting for federal awards leading to a materially misstated schedule of expenditures of federal awards being presented for audit. The schedule of expenditures of federal awards was corrected, but not until significantly after the close of the fiscal year. Effect: The lack of internal controls surrounding allocating costs could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management separately track and monitor federal expenditures from non-federal expenditures in their accounting system. Organization Response: Management agrees with this finding.
Criteria: Uniform Guidance requires that costs must be adequately documented and retained to demonstrate that only costs for allowable activities or allowable costs are charged to federal programs. Documentation should also support that expenditures are incurred during the period of availability and prior to submission for reimbursement. Condition: For the Transitional Living for Homeless Youth program, support could not be provided for costs charged to the program to support the allowability of costs and activities and whether the charges were incurred during the appropriate period of performance. Out of the 40 transactions tested for this program, adequate supporting documentation could not be provided for 7 transactions. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support costs charged to federal programs. Effect: Certain costs could not be supported as allowable, incurred during the appropriate period of performance, or incurred prior to submission for reimbursement that were charged to federal programs. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.
Criteria: Per 2 CFR section 200.305(b)(5), the entity is required to pay for the costs before the date of the reimbursement request. Condition: The Organization was unable to provide adequate audit support for reimbursement requests during the fiscal year under audit. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support reimbursement requests. Effect: The lack of internal controls surrounding the cash management compliance requirement could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.
Criteria: Reporting is a continuing compliance requirement that requires certain reports to be filed throughout the year to maintain program compliance. In this instance, the Transitional Living for Homeless Youth program is required to file quarterly Federal Financial Reports. Condition: Support could not be provided as evidence that the required reports were filed. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to show the necessary reports were filed. Effect: The lack of internal controls surrounding the reporting compliance requirement could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.
Criteria: Cost principles in 2 CFR part 200, subpart E (Cost Principles), prescribe general criteria costs follow to be considered allowable under federal awards. The criteria state costs must be necessary and reasonable for the performance of the federal award, be allocable, and be adequately documented. Condition: While all costs tested were determined to be necessary and reasonable for the performance of the federal award, federal expenditures were not allocable and adequately documented leading to a materially misstated schedule of expenditures of federal awards. Cause: Due to the lack of accounting expertise and transition in the accounting and finance roles during the year, there was a lack of accounting for federal awards leading to a materially misstated schedule of expenditures of federal awards being presented for audit. The schedule of expenditures of federal awards was corrected, but not until significantly after the close of the fiscal year. Effect: The lack of internal controls surrounding allocating costs could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management separately track and monitor federal expenditures from non-federal expenditures in their accounting system. Organization Response: Management agrees with this finding.
Criteria: Uniform Guidance requires that costs must be adequately documented and retained to demonstrate that only costs for allowable activities or allowable costs are charged to federal programs. Documentation should also support that expenditures are incurred during the period of availability and prior to submission for reimbursement. Condition: For the Transitional Living for Homeless Youth program, support could not be provided for costs charged to the program to support the allowability of costs and activities and whether the charges were incurred during the appropriate period of performance. Out of the 40 transactions tested for this program, adequate supporting documentation could not be provided for 7 transactions. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support costs charged to federal programs. Effect: Certain costs could not be supported as allowable, incurred during the appropriate period of performance, or incurred prior to submission for reimbursement that were charged to federal programs. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.
Criteria: Per 2 CFR section 200.305(b)(5), the entity is required to pay for the costs before the date of the reimbursement request. Condition: The Organization was unable to provide adequate audit support for reimbursement requests during the fiscal year under audit. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to support reimbursement requests. Effect: The lack of internal controls surrounding the cash management compliance requirement could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.
Criteria: Reporting is a continuing compliance requirement that requires certain reports to be filed throughout the year to maintain program compliance. In this instance, the Transitional Living for Homeless Youth program is required to file quarterly Federal Financial Reports. Condition: Support could not be provided as evidence that the required reports were filed. Cause: The Organization did not have adequate internal controls to ensure documentation was maintained to show the necessary reports were filed. Effect: The lack of internal controls surrounding the reporting compliance requirement could lead to potential funding issues in the future. Questioned Costs: None. Repeat Finding: N/A, first year for this finding. Recommendation: We recommend that management continue to implement additional control processes in order to ensure proper controls are in place and followed. Organization Response: Management agrees with this finding.