Audit 361922

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 9/30/24-9/29/25 Type of Finding: • Significant Deficiency 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: Yes 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. Note, the Organization implemented the recommendations in April of 2024 after the 2023 audit was completed. However, there was still a portion of 2024 where the process was not implemented. Thus, a repeat finding was warranted Views of Responsible Officials: There is no disagreement with the audit finding. Planned Corrective Actions: During each Payment Management System Draw process, the finance director will verify the draw amounts and run a program income and expense report to verify that the amount of miscellaneous expenses for the Transitional Living Program are more than the program income received. A copy of the income and expense statement will be saved in each draw file with the other verification documents. A column for verification initials of this process was added to the ACF Grant Balances Spreadsheet used for recording the draw amounts and dates of the draws.

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 9/30/24-9/29/25 Type of Finding: • Significant Deficiency 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: Yes 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. Note, the Organization implemented the recommendations in April of 2024 after the 2023 audit was completed. However, there was still a portion of 2024 where the process was not implemented. Thus, a repeat finding was warranted Views of Responsible Officials: There is no disagreement with the audit finding. Planned Corrective Actions: During each Payment Management System Draw process, the finance director will verify the draw amounts and run a program income and expense report to verify that the amount of miscellaneous expenses for the Transitional Living Program are more than the program income received. A copy of the income and expense statement will be saved in each draw file with the other verification documents. A column for verification initials of this process was added to the ACF Grant Balances Spreadsheet used for recording the draw amounts and dates of the draws.