FAC Explorer

Audit 31373

FY End
2022-06-30
Total Expended
$21.91M
Findings
2
Programs
10
Organization: Youth Development, Inc. (NM)
Year: 2022 Accepted: 2023-03-30
Auditor: Sjt Group LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30873 2022-002 Significant Deficiency Yes L
607315 2022-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.600 Head Start $16.04M Yes 1
17.259 Wia Youth Activities $4.02M Yes 0
10.558 Child and Adult Care Food Program $681,080 - 0
93.556 Promoting Safe and Stable Families $481,040 - 0
93.623 Basic Center Grant $226,959 - 0
93.550 Transitional Living for Homeless Youth $190,495 - 0
93.557 Education and Prevention Grants to Reduce Sexual Abuse of Runaway, Homeless and Street Youth $167,205 - 0
84.002 Adult Education - Basic Grants to States $45,161 - 0
15.931 Conservation Activities by Youth Service Organizations $38,380 - 0
16.726 Juvenile Mentoring Program $26,145 - 0

Contacts

Name Title Type
M4GNY7U8N2Y4 Terri Owens-Sweetland Auditee
5053523444 Joshua Trujillo Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Youth Development, Inc. (YDI) under programs of the federal government for the year ended June 30, 2022. Because the Schedule presents only a selected portion of the operations of YDI, it is not intended to and does not present the financial position, changes in net assets, or cash flows of YDI. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: YDI has received a Negotiated Indirect Cost Agreement for fiscal years ending June 30, 2022 and 2011. As such, under the Uniform Guidance, YDI is no longer eligible to receive the de minimis rate of 10%.

Finding Details

Finding 2022-002
2022-002 ? Reporting Federal program information: Funding Agency: U.S. Department of Health and Human Services Title: Head Start and Early Head Start Assistance Listing Number : 93.600 Award Number: 06CH011997 Award Period: July 1, 2021 ? December 31, 2021 Criteria: Quarterly and semi-annual interim SF-425 Federal Financial Reports reports shall be submitted no later than 30 days after the end of each reporting period. Annual reports shall be submitted no later than 90 days after the end of each reporting period. Final reports shall be submitted no later than 120 days after the end of each reporting period. Condition: The budget and project period for this grant award was from July 1, 2021 through December 31, 2021. YDI filed the annual SF-425 report and the semi-annual SF-425 after the required due date. Questioned Costs: None. Context: One semi-annual report and one annual report, which were submitted on July 24, 2022. Cause and Effect: YDI experienced significant turnover in the Budget Analyst position during 2022. As a result, Head Start and Early Head Start programs are not in compliance with reporting requirements. Auditor?s Recommendation: All reports should be submitted as specified in the grant agreements. The directors and grant accounting personnel should utilize the detailed calendar that is in place to ensure reports are submitted in accordance with the grant agreements. Reports should be reviewed by an appropriate independent person. Management?s Response: YDI concedes the agency was delinquent in reporting for the SF-425 annual report due January 30, 2022. This report was filed on July 24, 2022. YDI can report the SF-425 semi-annual report due October 30, 2021 was submitted October 29, 2021; the SF-425 final report due April 30, 2022 was filed on April 29, 2022; the SF-425 semi-annual report due July 30, 2022 was filed on July 15, 2022; and the SF-425 final report due on April 30, 2023 was filed on March 31, 2023. For the last 36 months, YDI has experienced shortage of qualified personnel in most facets of its business due to COVID impacts, the ?great resignation? of employees who left looking for better pay and advancement. YDI?s Finance Department was no exception to this situation in the position of Budget Analyst for Head Start, having four people assigned from March 2020 to February 2022. The current Budget Analyst began his work in February 2022 and he has been instrumental in addressing and correcting this finding.
Finding 2022-002
2022-002 ? Reporting Federal program information: Funding Agency: U.S. Department of Health and Human Services Title: Head Start and Early Head Start Assistance Listing Number : 93.600 Award Number: 06CH011997 Award Period: July 1, 2021 ? December 31, 2021 Criteria: Quarterly and semi-annual interim SF-425 Federal Financial Reports reports shall be submitted no later than 30 days after the end of each reporting period. Annual reports shall be submitted no later than 90 days after the end of each reporting period. Final reports shall be submitted no later than 120 days after the end of each reporting period. Condition: The budget and project period for this grant award was from July 1, 2021 through December 31, 2021. YDI filed the annual SF-425 report and the semi-annual SF-425 after the required due date. Questioned Costs: None. Context: One semi-annual report and one annual report, which were submitted on July 24, 2022. Cause and Effect: YDI experienced significant turnover in the Budget Analyst position during 2022. As a result, Head Start and Early Head Start programs are not in compliance with reporting requirements. Auditor?s Recommendation: All reports should be submitted as specified in the grant agreements. The directors and grant accounting personnel should utilize the detailed calendar that is in place to ensure reports are submitted in accordance with the grant agreements. Reports should be reviewed by an appropriate independent person. Management?s Response: YDI concedes the agency was delinquent in reporting for the SF-425 annual report due January 30, 2022. This report was filed on July 24, 2022. YDI can report the SF-425 semi-annual report due October 30, 2021 was submitted October 29, 2021; the SF-425 final report due April 30, 2022 was filed on April 29, 2022; the SF-425 semi-annual report due July 30, 2022 was filed on July 15, 2022; and the SF-425 final report due on April 30, 2023 was filed on March 31, 2023. For the last 36 months, YDI has experienced shortage of qualified personnel in most facets of its business due to COVID impacts, the ?great resignation? of employees who left looking for better pay and advancement. YDI?s Finance Department was no exception to this situation in the position of Budget Analyst for Head Start, having four people assigned from March 2020 to February 2022. The current Budget Analyst began his work in February 2022 and he has been instrumental in addressing and correcting this finding.