FAC Explorer

Audit 362034

FY End
2024-06-30
Total Expended
$2.35M
Findings
12
Programs
12
Organization: Washington County Youth Service Bureau and Boys and Girls Club (VT)
Year: 2024 Accepted: 2025-07-11
Auditor: Davis and Hodgdon Associates CPAS Plc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
571132 2024-002 Material Weakness - M
571133 2024-003 Significant Deficiency - L
571134 2024-002 Material Weakness Yes M
571135 2024-003 Significant Deficiency - L
571136 2024-001 Significant Deficiency - P
571137 2024-001 Significant Deficiency - P
1147574 2024-002 Material Weakness - M
1147575 2024-003 Significant Deficiency - L
1147576 2024-002 Material Weakness Yes M
1147577 2024-003 Significant Deficiency - L
1147578 2024-001 Significant Deficiency - P
1147579 2024-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $842,153 Yes 3
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $329,138 - 0
93.550 Transitional Living for Homeless Youth $250,000 - 0
93.623 Basic Center Grant $200,120 Yes 3
94.006 Americorps State and National 94.006 $125,486 - 0
93.788 Opioid Str $70,361 - 0
93.778 Medical Assistance Program $13,603 - 0
94.013 Americorps Volunteers in Service to America 94.013 $12,974 - 0
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $9,111 - 0
93.558 Temporary Assistance for Needy Families $6,250 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $5,735 - 0
45.129 Promotion of the Humanities Federal/state Partnership $2,476 - 0

Contacts

Name Title Type
QWULX8NHSF75 Pearl Teague Auditee
8022299151 Bret Hodgdon Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1. to Elevate’s financial statements. Such expenditures are recognized following the cost principles contained Title 2 U.S. CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior year. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Elevate has an agreement with the U.S. Department of Health and Human Services to receive reimbursement for indirect costs. The indirect cost rate for fiscal year 2024 was 21% of direct costs. The de minimus indirect rate of 10% has not been used. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Elevate and is presented on the accrual basis of accounting, as described in Note 1. to Elevate’s financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the general-purpose financial statements.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1. to Elevate’s financial statements. Such expenditures are recognized following the cost principles contained Title 2 U.S. CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior year. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Elevate has an agreement with the U.S. Department of Health and Human Services to receive reimbursement for indirect costs. The indirect cost rate for fiscal year 2024 was 21% of direct costs. The de minimus indirect rate of 10% has not been used. Elevate has provided federal awards to subrecipients as follows: Subrecipient 14.267 93.550 93.623 93.674 94.006 Total Charter House $ 16,726 $ - $ - - $ -- $ - - $ 16,726 Common Roots - - - - -- - - 7,764 7 ,764 City of Winooski - - - - -- - - 12,350 1 2,350 Easter Seals Vermont Inc. - - - - - - 101,016 - - 101,016 Family Center of Washington County 1 22,702 - - -- -- - - 122,702 Homeless Prevention Center 2 6,871 - - -- -- - - 26,871 Insight - - - - -- - - 10,483 1 0,483 Lamoille Restorative Center - - - - - - 19,200 - - 19,200 Leahy Center for Lake Champlain - - - - -- - - 14,304 1 4,304 Maple Hill School & Farm - - - - -- - - 25,888 2 5,888 Northeast Kingdom Community Action 5 5,527 - - - - 15,891 - - 71,418 Northeast Kingdom Youth Services 1 43,900 7 1,252 56,894 2 0,443 - - 292,489 Northwestern Counseling & Supp. Svcs 2 3,508 - - -- -- - - 23,508 Old Spokes Home - - - - -- - - 5,828 5 ,828 Spectrum, Inc. - - -- - - 91,994 - - 91,994 Springfield Supported Housing Program 4 2,125 - - -- - - 42,125 Sunrise Family Resource Center - - - - - - 20,443 - - 20,443 Vermont State Housing Authority 3 6,675 - - -- -- - - 36,675 Willowell Foundation - - - - -- - - 20,627 2 0,627 Youth Services, Inc. 1 21,355 70,748 57,106 8,995 -- 258,204 $ 5 89,389 $ 142,000 $ 114,000 $ 277,982 $ 97,244 $ 1,220,615

Finding Details

Finding 2024-002
Finding Number: 2024-002 Finding Type: Internal Control Over Compliance – Subrecipient Monitoring Information on the Federal Programs: Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.267 Federal Program Name: Continuum of Care Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: VT0081Y1T002102, VT0081Y1T002103 VT0082Y1T002102, VT0082Y1T002103 VT0083Y1T002102, VT0083Y1T002103 VT0084Y1T002102, VT0084Y1T002103 VT0085Y1T002102, VT0085Y1T002102 Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.623 Federal Program Name: Basic Center Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: 90CY7401-01-00 90CY7401-01-00 Criteria: Elevate Youth Services, Inc. has the responsibility to monitor the programmatic and financial components of any Federal grant funds that it passes through to another organization. Monitoring activities include and are not limited to the following: 1) Establishing formal policies and procedures regarding Elevate’s approach to subrecipient monitoring and creating tools to track and document subrecipient programmatic and financial performance under the award. 2) Performing risk assessments of subrecipients throughout the year to identify areas of risk or identify changes with subrecipients that could trigger compliance risks. 3) Review of programmatic and financial activities related to the awards through site visits or desk review. 4) Formal communication to subrecipients as it relates to the results of site visits or desk reviews and the process for necessary corrective action, when necessary. Draft #2 ELEVATE YOUTH SERVICES, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2024 33 Section III. Federal Award Findings and Questioned Costs (continued) Finding Number: 2024-002 (continued) Condition Found and Context: Elevate did not perform complete subrecipient site visits or desk reviews at either the programmatic and financial performance level consistently during the year under audit, however the program staff developed its approach to site visits and created tools to initiate site visits. Elevate did perform site visits and completed exit conferences on site, however, the results of the visits have not been formally documented or communicated to the subgrantees or to Elevate’s management. Cause and Effect: Elevate experienced significant staffing challenges in managing this award from the program’s inception. While Elevate has a long experience of providing subgrants to partner organizations, the personnel responsible for the management of this program turned over frequently enough that a formal and consistent practice of subrecipient monitoring has not been able to be established. This result of not performing consistent site visits and monitoring and formally communicating the results can result in delays in identifying noncompliance or not identifying noncompliance at all. Questioned Costs: None Repeat Finding: Yes Recommendation: Management should prioritize the completion in formalizing its policies and procedures as it relates to subrecipient monitoring for this program and these procedures should be consistent with other organizational monitoring programs. These procedures should include the process and timetable in which results will be communicated with the subgrantees and internally. Elevate must also complete its documentation on the site visits and communicate the results of the visits to its subgrantees and internally. Views of Responsible Official and Corrective Action Plan Management acknowledges and understands this finding. A response to the finding is noted in the Corrective Action Plan on pages 38-39.
Finding 2024-003
Finding Number: 2024-003 Finding Type: Internal Control Over Compliance – Reporting Information on the Federal Program: Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.267 Federal Program Name: Continuum of Care Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: VT0081Y1T002102, VT0081Y1T002103 VT0082Y1T002102, VT0082Y1T002103 VT0083Y1T002102, VT0083Y1T002103 VT0084Y1T002102, VT0084Y1T002103 VT0085Y1T002102, VT0085Y1T002102 Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.623 Federal Program Name: Basic Center Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: 90CY7401-01-00 90CY7401-01-00 Criteria: Elevate Youth Services, Inc. has the responsibility to report programmatic and financial components Federal agencies as certain times throughout the grant award period. Semiannual reports are due 30 days after period end and annual reports are due 90 days after period end. Condition Found and Context: Elevate was inconsistent in submitting the required grant reporting by the required due dates and for several reports, was unable to provide evidence of submission dates. There are also several instances where reports were rejected by the Federal agency and remain unresolved. Cause and Effect: Elevate experienced significant staffing challenges in managing these awards, which has created a significant backlog in work to be completed. The personnel responsible for the management of this program turned over frequently enough that a formal and consistent reporting practice has not yet been established. Questioned Costs: None Repeat Finding: No Recommendation: Management should formalize a procedure and internal tracking document that allows for the tracking and monitoring of grant reporting to ensure completion. This report should be monitored by the program staff responsible for the reporting and by management. These procedure should include the process for completing reports, the report due dates and protocol for any follow up that is needed on submitted reports. Views of Responsible Official and Corrective Action Plan Management acknowledges and understands this finding. A response to the finding is noted in the Corrective Action Plan on page 40.
Finding 2024-002
Finding Number: 2024-002 Finding Type: Internal Control Over Compliance – Subrecipient Monitoring Information on the Federal Programs: Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.267 Federal Program Name: Continuum of Care Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: VT0081Y1T002102, VT0081Y1T002103 VT0082Y1T002102, VT0082Y1T002103 VT0083Y1T002102, VT0083Y1T002103 VT0084Y1T002102, VT0084Y1T002103 VT0085Y1T002102, VT0085Y1T002102 Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.623 Federal Program Name: Basic Center Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: 90CY7401-01-00 90CY7401-01-00 Criteria: Elevate Youth Services, Inc. has the responsibility to monitor the programmatic and financial components of any Federal grant funds that it passes through to another organization. Monitoring activities include and are not limited to the following: 1) Establishing formal policies and procedures regarding Elevate’s approach to subrecipient monitoring and creating tools to track and document subrecipient programmatic and financial performance under the award. 2) Performing risk assessments of subrecipients throughout the year to identify areas of risk or identify changes with subrecipients that could trigger compliance risks. 3) Review of programmatic and financial activities related to the awards through site visits or desk review. 4) Formal communication to subrecipients as it relates to the results of site visits or desk reviews and the process for necessary corrective action, when necessary. Draft #2 ELEVATE YOUTH SERVICES, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2024 33 Section III. Federal Award Findings and Questioned Costs (continued) Finding Number: 2024-002 (continued) Condition Found and Context: Elevate did not perform complete subrecipient site visits or desk reviews at either the programmatic and financial performance level consistently during the year under audit, however the program staff developed its approach to site visits and created tools to initiate site visits. Elevate did perform site visits and completed exit conferences on site, however, the results of the visits have not been formally documented or communicated to the subgrantees or to Elevate’s management. Cause and Effect: Elevate experienced significant staffing challenges in managing this award from the program’s inception. While Elevate has a long experience of providing subgrants to partner organizations, the personnel responsible for the management of this program turned over frequently enough that a formal and consistent practice of subrecipient monitoring has not been able to be established. This result of not performing consistent site visits and monitoring and formally communicating the results can result in delays in identifying noncompliance or not identifying noncompliance at all. Questioned Costs: None Repeat Finding: Yes Recommendation: Management should prioritize the completion in formalizing its policies and procedures as it relates to subrecipient monitoring for this program and these procedures should be consistent with other organizational monitoring programs. These procedures should include the process and timetable in which results will be communicated with the subgrantees and internally. Elevate must also complete its documentation on the site visits and communicate the results of the visits to its subgrantees and internally. Views of Responsible Official and Corrective Action Plan Management acknowledges and understands this finding. A response to the finding is noted in the Corrective Action Plan on pages 38-39.
Finding 2024-003
Finding Number: 2024-003 Finding Type: Internal Control Over Compliance – Reporting Information on the Federal Program: Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.267 Federal Program Name: Continuum of Care Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: VT0081Y1T002102, VT0081Y1T002103 VT0082Y1T002102, VT0082Y1T002103 VT0083Y1T002102, VT0083Y1T002103 VT0084Y1T002102, VT0084Y1T002103 VT0085Y1T002102, VT0085Y1T002102 Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.623 Federal Program Name: Basic Center Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: 90CY7401-01-00 90CY7401-01-00 Criteria: Elevate Youth Services, Inc. has the responsibility to report programmatic and financial components Federal agencies as certain times throughout the grant award period. Semiannual reports are due 30 days after period end and annual reports are due 90 days after period end. Condition Found and Context: Elevate was inconsistent in submitting the required grant reporting by the required due dates and for several reports, was unable to provide evidence of submission dates. There are also several instances where reports were rejected by the Federal agency and remain unresolved. Cause and Effect: Elevate experienced significant staffing challenges in managing these awards, which has created a significant backlog in work to be completed. The personnel responsible for the management of this program turned over frequently enough that a formal and consistent reporting practice has not yet been established. Questioned Costs: None Repeat Finding: No Recommendation: Management should formalize a procedure and internal tracking document that allows for the tracking and monitoring of grant reporting to ensure completion. This report should be monitored by the program staff responsible for the reporting and by management. These procedure should include the process for completing reports, the report due dates and protocol for any follow up that is needed on submitted reports. Views of Responsible Official and Corrective Action Plan Management acknowledges and understands this finding. A response to the finding is noted in the Corrective Action Plan on page 40.
Finding 2024-001
Finding Number: 2024-001 Finding Type: Internal Control Over Compliance – Other Criteria: General journal entries are part of Elevate’s financial reporting system and are prepared to allocate costs, including payroll and related costs, to record grant billings and receivables, to record subgrantee disbursements and to reconcile accounts as needed. Condition Found and Context: When performing testing related to expenditures, there were ten transactions that were related to shared expenses (ie: insurance, administrative costs, facility costs, etc.) that were charged to programs via general journal entries. While the costs charged to the program appear allowable and reasonable, there is no formal approval process for the journal entries posted. Cause and Effect: The lack of a formal approval process could lead to errors in financial reporting and cost allocations. Recommendation: While management has an informal process for reviewing journal entries as part of the financial statement review process, management should consider creating a formal policy that incorporates a journal entry review and documentation of that review. Views of the Responsible Official and Corrective Action Plan: Management agrees with the findings. Procedures will be put in place as indicated in the Corrective Action Plan on page 37.
Finding 2024-001
Finding Number: 2024-001 Finding Type: Internal Control Over Compliance – Other Criteria: General journal entries are part of Elevate’s financial reporting system and are prepared to allocate costs, including payroll and related costs, to record grant billings and receivables, to record subgrantee disbursements and to reconcile accounts as needed. Condition Found and Context: When performing testing related to expenditures, there were ten transactions that were related to shared expenses (ie: insurance, administrative costs, facility costs, etc.) that were charged to programs via general journal entries. While the costs charged to the program appear allowable and reasonable, there is no formal approval process for the journal entries posted. Cause and Effect: The lack of a formal approval process could lead to errors in financial reporting and cost allocations. Recommendation: While management has an informal process for reviewing journal entries as part of the financial statement review process, management should consider creating a formal policy that incorporates a journal entry review and documentation of that review. Views of the Responsible Official and Corrective Action Plan: Management agrees with the findings. Procedures will be put in place as indicated in the Corrective Action Plan on page 37.
Finding 2024-002
Finding Number: 2024-002 Finding Type: Internal Control Over Compliance – Subrecipient Monitoring Information on the Federal Programs: Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.267 Federal Program Name: Continuum of Care Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: VT0081Y1T002102, VT0081Y1T002103 VT0082Y1T002102, VT0082Y1T002103 VT0083Y1T002102, VT0083Y1T002103 VT0084Y1T002102, VT0084Y1T002103 VT0085Y1T002102, VT0085Y1T002102 Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.623 Federal Program Name: Basic Center Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: 90CY7401-01-00 90CY7401-01-00 Criteria: Elevate Youth Services, Inc. has the responsibility to monitor the programmatic and financial components of any Federal grant funds that it passes through to another organization. Monitoring activities include and are not limited to the following: 1) Establishing formal policies and procedures regarding Elevate’s approach to subrecipient monitoring and creating tools to track and document subrecipient programmatic and financial performance under the award. 2) Performing risk assessments of subrecipients throughout the year to identify areas of risk or identify changes with subrecipients that could trigger compliance risks. 3) Review of programmatic and financial activities related to the awards through site visits or desk review. 4) Formal communication to subrecipients as it relates to the results of site visits or desk reviews and the process for necessary corrective action, when necessary. Draft #2 ELEVATE YOUTH SERVICES, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2024 33 Section III. Federal Award Findings and Questioned Costs (continued) Finding Number: 2024-002 (continued) Condition Found and Context: Elevate did not perform complete subrecipient site visits or desk reviews at either the programmatic and financial performance level consistently during the year under audit, however the program staff developed its approach to site visits and created tools to initiate site visits. Elevate did perform site visits and completed exit conferences on site, however, the results of the visits have not been formally documented or communicated to the subgrantees or to Elevate’s management. Cause and Effect: Elevate experienced significant staffing challenges in managing this award from the program’s inception. While Elevate has a long experience of providing subgrants to partner organizations, the personnel responsible for the management of this program turned over frequently enough that a formal and consistent practice of subrecipient monitoring has not been able to be established. This result of not performing consistent site visits and monitoring and formally communicating the results can result in delays in identifying noncompliance or not identifying noncompliance at all. Questioned Costs: None Repeat Finding: Yes Recommendation: Management should prioritize the completion in formalizing its policies and procedures as it relates to subrecipient monitoring for this program and these procedures should be consistent with other organizational monitoring programs. These procedures should include the process and timetable in which results will be communicated with the subgrantees and internally. Elevate must also complete its documentation on the site visits and communicate the results of the visits to its subgrantees and internally. Views of Responsible Official and Corrective Action Plan Management acknowledges and understands this finding. A response to the finding is noted in the Corrective Action Plan on pages 38-39.
Finding 2024-003
Finding Number: 2024-003 Finding Type: Internal Control Over Compliance – Reporting Information on the Federal Program: Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.267 Federal Program Name: Continuum of Care Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: VT0081Y1T002102, VT0081Y1T002103 VT0082Y1T002102, VT0082Y1T002103 VT0083Y1T002102, VT0083Y1T002103 VT0084Y1T002102, VT0084Y1T002103 VT0085Y1T002102, VT0085Y1T002102 Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.623 Federal Program Name: Basic Center Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: 90CY7401-01-00 90CY7401-01-00 Criteria: Elevate Youth Services, Inc. has the responsibility to report programmatic and financial components Federal agencies as certain times throughout the grant award period. Semiannual reports are due 30 days after period end and annual reports are due 90 days after period end. Condition Found and Context: Elevate was inconsistent in submitting the required grant reporting by the required due dates and for several reports, was unable to provide evidence of submission dates. There are also several instances where reports were rejected by the Federal agency and remain unresolved. Cause and Effect: Elevate experienced significant staffing challenges in managing these awards, which has created a significant backlog in work to be completed. The personnel responsible for the management of this program turned over frequently enough that a formal and consistent reporting practice has not yet been established. Questioned Costs: None Repeat Finding: No Recommendation: Management should formalize a procedure and internal tracking document that allows for the tracking and monitoring of grant reporting to ensure completion. This report should be monitored by the program staff responsible for the reporting and by management. These procedure should include the process for completing reports, the report due dates and protocol for any follow up that is needed on submitted reports. Views of Responsible Official and Corrective Action Plan Management acknowledges and understands this finding. A response to the finding is noted in the Corrective Action Plan on page 40.
Finding 2024-002
Finding Number: 2024-002 Finding Type: Internal Control Over Compliance – Subrecipient Monitoring Information on the Federal Programs: Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.267 Federal Program Name: Continuum of Care Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: VT0081Y1T002102, VT0081Y1T002103 VT0082Y1T002102, VT0082Y1T002103 VT0083Y1T002102, VT0083Y1T002103 VT0084Y1T002102, VT0084Y1T002103 VT0085Y1T002102, VT0085Y1T002102 Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.623 Federal Program Name: Basic Center Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: 90CY7401-01-00 90CY7401-01-00 Criteria: Elevate Youth Services, Inc. has the responsibility to monitor the programmatic and financial components of any Federal grant funds that it passes through to another organization. Monitoring activities include and are not limited to the following: 1) Establishing formal policies and procedures regarding Elevate’s approach to subrecipient monitoring and creating tools to track and document subrecipient programmatic and financial performance under the award. 2) Performing risk assessments of subrecipients throughout the year to identify areas of risk or identify changes with subrecipients that could trigger compliance risks. 3) Review of programmatic and financial activities related to the awards through site visits or desk review. 4) Formal communication to subrecipients as it relates to the results of site visits or desk reviews and the process for necessary corrective action, when necessary. Draft #2 ELEVATE YOUTH SERVICES, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended June 30, 2024 33 Section III. Federal Award Findings and Questioned Costs (continued) Finding Number: 2024-002 (continued) Condition Found and Context: Elevate did not perform complete subrecipient site visits or desk reviews at either the programmatic and financial performance level consistently during the year under audit, however the program staff developed its approach to site visits and created tools to initiate site visits. Elevate did perform site visits and completed exit conferences on site, however, the results of the visits have not been formally documented or communicated to the subgrantees or to Elevate’s management. Cause and Effect: Elevate experienced significant staffing challenges in managing this award from the program’s inception. While Elevate has a long experience of providing subgrants to partner organizations, the personnel responsible for the management of this program turned over frequently enough that a formal and consistent practice of subrecipient monitoring has not been able to be established. This result of not performing consistent site visits and monitoring and formally communicating the results can result in delays in identifying noncompliance or not identifying noncompliance at all. Questioned Costs: None Repeat Finding: Yes Recommendation: Management should prioritize the completion in formalizing its policies and procedures as it relates to subrecipient monitoring for this program and these procedures should be consistent with other organizational monitoring programs. These procedures should include the process and timetable in which results will be communicated with the subgrantees and internally. Elevate must also complete its documentation on the site visits and communicate the results of the visits to its subgrantees and internally. Views of Responsible Official and Corrective Action Plan Management acknowledges and understands this finding. A response to the finding is noted in the Corrective Action Plan on pages 38-39.
Finding 2024-003
Finding Number: 2024-003 Finding Type: Internal Control Over Compliance – Reporting Information on the Federal Program: Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.267 Federal Program Name: Continuum of Care Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: VT0081Y1T002102, VT0081Y1T002103 VT0082Y1T002102, VT0082Y1T002103 VT0083Y1T002102, VT0083Y1T002103 VT0084Y1T002102, VT0084Y1T002103 VT0085Y1T002102, VT0085Y1T002102 Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.623 Federal Program Name: Basic Center Program Federal Award Periods: October 1, 2022 – September 30, 2023 October 1, 2023 – September 30, 2024 Federal Awards: 90CY7401-01-00 90CY7401-01-00 Criteria: Elevate Youth Services, Inc. has the responsibility to report programmatic and financial components Federal agencies as certain times throughout the grant award period. Semiannual reports are due 30 days after period end and annual reports are due 90 days after period end. Condition Found and Context: Elevate was inconsistent in submitting the required grant reporting by the required due dates and for several reports, was unable to provide evidence of submission dates. There are also several instances where reports were rejected by the Federal agency and remain unresolved. Cause and Effect: Elevate experienced significant staffing challenges in managing these awards, which has created a significant backlog in work to be completed. The personnel responsible for the management of this program turned over frequently enough that a formal and consistent reporting practice has not yet been established. Questioned Costs: None Repeat Finding: No Recommendation: Management should formalize a procedure and internal tracking document that allows for the tracking and monitoring of grant reporting to ensure completion. This report should be monitored by the program staff responsible for the reporting and by management. These procedure should include the process for completing reports, the report due dates and protocol for any follow up that is needed on submitted reports. Views of Responsible Official and Corrective Action Plan Management acknowledges and understands this finding. A response to the finding is noted in the Corrective Action Plan on page 40.
Finding 2024-001
Finding Number: 2024-001 Finding Type: Internal Control Over Compliance – Other Criteria: General journal entries are part of Elevate’s financial reporting system and are prepared to allocate costs, including payroll and related costs, to record grant billings and receivables, to record subgrantee disbursements and to reconcile accounts as needed. Condition Found and Context: When performing testing related to expenditures, there were ten transactions that were related to shared expenses (ie: insurance, administrative costs, facility costs, etc.) that were charged to programs via general journal entries. While the costs charged to the program appear allowable and reasonable, there is no formal approval process for the journal entries posted. Cause and Effect: The lack of a formal approval process could lead to errors in financial reporting and cost allocations. Recommendation: While management has an informal process for reviewing journal entries as part of the financial statement review process, management should consider creating a formal policy that incorporates a journal entry review and documentation of that review. Views of the Responsible Official and Corrective Action Plan: Management agrees with the findings. Procedures will be put in place as indicated in the Corrective Action Plan on page 37.
Finding 2024-001
Finding Number: 2024-001 Finding Type: Internal Control Over Compliance – Other Criteria: General journal entries are part of Elevate’s financial reporting system and are prepared to allocate costs, including payroll and related costs, to record grant billings and receivables, to record subgrantee disbursements and to reconcile accounts as needed. Condition Found and Context: When performing testing related to expenditures, there were ten transactions that were related to shared expenses (ie: insurance, administrative costs, facility costs, etc.) that were charged to programs via general journal entries. While the costs charged to the program appear allowable and reasonable, there is no formal approval process for the journal entries posted. Cause and Effect: The lack of a formal approval process could lead to errors in financial reporting and cost allocations. Recommendation: While management has an informal process for reviewing journal entries as part of the financial statement review process, management should consider creating a formal policy that incorporates a journal entry review and documentation of that review. Views of the Responsible Official and Corrective Action Plan: Management agrees with the findings. Procedures will be put in place as indicated in the Corrective Action Plan on page 37.