Audit 315565

2023 – 001 Federal Agency: Department of Health and Human Services Federal Program Title: Transitional Living for Homeless Youth Federal Assistance Listing Number: 93.550 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 9/30/23-9/29/24 and 9/30/22-9/29/23 Type of Finding: • Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Clients must be under a certain age to be eligible for services. Condition: During the audit, it was discovered that two clients were over the age limit to be considered eligible for the program. Questioned Costs: N/A Context: The program is designed to provide services to clients who meet certain eligibility requirements, including age limits. Cause: The Organization did not have adequate controls in place to ensure that clients met the eligibility requirements before being enrolled in the program. Effect: The Organization provided services to clients who were not eligible. Repeat Finding: No Recommendation: It is recommended that the Organization implement controls to ensure that clients meet the eligibility requirements before being enrolled in the program. This could include verifying age at the time of enrollment and periodically re-verifying eligibility for ongoing clients. Additionally, the Organization should review its policies and procedures to ensure that they are in compliance with program requirements and make any necessary updates. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: Department of Health and Human Services Federal Program Title: Transitional Living for Homeless Youth Federal Assistance Listing Number: 93.550 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 9/30/23-9/29/24 and 9/30/22-9/29/23 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: The Organization must have support for the internal control over client eligibility. Condition: During the audit, it was discovered that the Organization did not have proper reviewer signoff on support for client eligibility. Questioned Costs: N/A Context: Federal Regulations require that clients meet certain eligibility requirements in order to receive services. Proper reviewer signoff for eligibility is necessary to ensure compliance with program requirements. Cause: The Organization did not have adequate controls in place to ensure that proper documentation and support for eligibility was obtained and reviewed by a qualified individual. Effect: The Organization may not have sufficient evidence to support client eligibility, which could result in noncompliance with program requirements. Repeat Finding: No Recommendation: It is recommended that the Organization implement controls to ensure that proper documentation and support for eligibility is obtained and reviewed by a qualified individual. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: Department of Health and Human Services Federal Program Title: Transitional Living for Homeless Youth Federal Assistance Listing Number: 93.550 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 9/30/23-9/29/24 and 9/30/22-9/29/23 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: The Organization must monitor program income to ensure that program income funds are being properly used before requesting additional federal funds. Condition: During the audit, it was discovered that the Organization did not have adequate controls in place to monitor program income and ensure that the funds were being properly used before requesting additional federal funds. Questioned Costs: N/A Context: Uniform Guidance requires that program income be used in accordance with program requirements and that the Organization monitor the use of program income to ensure compliance Cause: The Organization did not have adequate controls in place to monitor program income and ensure that the funds were being properly used before requesting additional federal funds. Effect: The Organization may have requested and received federal funds without ensuring that program income was being properly used, which could result in requesting more federal funds than what was expended. Repeat Finding: No Recommendation: It is recommended that the Organization implement controls to monitor program income and ensure that the funds are being properly used before requesting additional federal funds. This could include requiring regular reporting on the use of program income and conducting periodic reviews to ensure compliance with program requirements. Additionally, the Organization should review its policies and procedures to ensure that they are in compliance with program requirements and make any necessary updates. Finally, the Organization should ensure that all staff members responsible for monitoring program income are properly trained and have a clear understanding of program requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

2023 – 001 Federal Agency: Department of Health and Human Services Federal Program Title: Transitional Living for Homeless Youth Federal Assistance Listing Number: 93.550 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 9/30/23-9/29/24 and 9/30/22-9/29/23 Type of Finding: • Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Clients must be under a certain age to be eligible for services. Condition: During the audit, it was discovered that two clients were over the age limit to be considered eligible for the program. Questioned Costs: N/A Context: The program is designed to provide services to clients who meet certain eligibility requirements, including age limits. Cause: The Organization did not have adequate controls in place to ensure that clients met the eligibility requirements before being enrolled in the program. Effect: The Organization provided services to clients who were not eligible. Repeat Finding: No Recommendation: It is recommended that the Organization implement controls to ensure that clients meet the eligibility requirements before being enrolled in the program. This could include verifying age at the time of enrollment and periodically re-verifying eligibility for ongoing clients. Additionally, the Organization should review its policies and procedures to ensure that they are in compliance with program requirements and make any necessary updates. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: Department of Health and Human Services Federal Program Title: Transitional Living for Homeless Youth Federal Assistance Listing Number: 93.550 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 9/30/23-9/29/24 and 9/30/22-9/29/23 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: The Organization must have support for the internal control over client eligibility. Condition: During the audit, it was discovered that the Organization did not have proper reviewer signoff on support for client eligibility. Questioned Costs: N/A Context: Federal Regulations require that clients meet certain eligibility requirements in order to receive services. Proper reviewer signoff for eligibility is necessary to ensure compliance with program requirements. Cause: The Organization did not have adequate controls in place to ensure that proper documentation and support for eligibility was obtained and reviewed by a qualified individual. Effect: The Organization may not have sufficient evidence to support client eligibility, which could result in noncompliance with program requirements. Repeat Finding: No Recommendation: It is recommended that the Organization implement controls to ensure that proper documentation and support for eligibility is obtained and reviewed by a qualified individual. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: Department of Health and Human Services Federal Program Title: Transitional Living for Homeless Youth Federal Assistance Listing Number: 93.550 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 9/30/23-9/29/24 and 9/30/22-9/29/23 Type of Finding: • Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: The Organization must monitor program income to ensure that program income funds are being properly used before requesting additional federal funds. Condition: During the audit, it was discovered that the Organization did not have adequate controls in place to monitor program income and ensure that the funds were being properly used before requesting additional federal funds. Questioned Costs: N/A Context: Uniform Guidance requires that program income be used in accordance with program requirements and that the Organization monitor the use of program income to ensure compliance Cause: The Organization did not have adequate controls in place to monitor program income and ensure that the funds were being properly used before requesting additional federal funds. Effect: The Organization may have requested and received federal funds without ensuring that program income was being properly used, which could result in requesting more federal funds than what was expended. Repeat Finding: No Recommendation: It is recommended that the Organization implement controls to monitor program income and ensure that the funds are being properly used before requesting additional federal funds. This could include requiring regular reporting on the use of program income and conducting periodic reviews to ensure compliance with program requirements. Additionally, the Organization should review its policies and procedures to ensure that they are in compliance with program requirements and make any necessary updates. Finally, the Organization should ensure that all staff members responsible for monitoring program income are properly trained and have a clear understanding of program requirements. Views of Responsible Officials: There is no disagreement with the audit finding.