Audit 367463

Federal Granting Agency: U.S. Department of Health and Human Services Federal Pass-through Entity: New York City Department of Youth and Community Development Assistance Listing Number: 93.569 Assistance Listing Title: Community Services Block Grant Award Number: 450100 Award Year: January 1, 2024 – June 30, 2024 and July 1, 2024 – December 31, 2024 Criteria: The Community Services Block Grant “provides funds to support programs that reduce poverty, revitalize low-income communities, and empower low-income families and individuals to become fully self-sufficient.” Therefore, the U.S. Department of Health and Human Services (“DHHS”) defines a target population of individuals who are eligible to participate in the programs. For award 450100, there were four mandatory criterion to be met: participants must 1) be youth enrolled in grades 9-12, 2) have a grade point average of 75(C) or below, a failing grade in one or more subjects, or chronic school absenteeism, 3)come from families that are Income Eligible, and 4) reside and/or attend school within the proposedNeighborhood Development Area. All applicants must meet each of the outlined criteria in order to beaccepted into the programs funded by DHHS. Condition: The Association received three separate awards under the grant with differing eligibility requirements. We reviewed a sample of 25 participants enrolled in the program during the fiscal year across all three awards. For this award (award 450100), we selected a sample of eight participants, of which five participants were not eligible for the program as at least one mandatory criterion from above was not met. Cause: When reviewing the eligibility criteria outlined in the grant agreement for the award, management misinterpreted an applicant to be eligible to participate in the program if one of the four eligibility criteria was met, however, all four of the eligibility criteria must be met for an applicant to be considered eligible for the program. Effect: Management included ineligible participants in the program. Questioned Costs: $109,386 - Management reviewed the entire population of participants (169 for calendar year 2024) for this specific award (award 450100) within the program and determined there were only 11 eligible participants enrolled in the program. Recommendation: We recommend management work with the agency to determine the necessary remediation required for the award. Going forward, we recommend management ensure all eligibility requirements are understood on an individual award basis and communicated to those responsible for determining eligibility for the program. We also recommend periodic monitoring to ensure requirements are documented and met for the individuals enrolled in the program. Repeat Finding in the Prior Year: No Management’s View and Corrective Action Plan: Management’s View and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.

Federal Granting Agency: U.S. Department of Health and Human Services Federal Pass-through Entity: New York City Department of Youth and Community Development Assistance Listing Number: 93.569 Assistance Listing Title: Community Services Block Grant Award Number: 450100 Award Year: January 1, 2024 – June 30, 2024 and July 1, 2024 – December 31, 2024 Criteria: The Community Services Block Grant “provides funds to support programs that reduce poverty, revitalize low-income communities, and empower low-income families and individuals to become fully self-sufficient.” Therefore, the U.S. Department of Health and Human Services (“DHHS”) defines a target population of individuals who are eligible to participate in the programs. For award 450100, there were four mandatory criterion to be met: participants must 1) be youth enrolled in grades 9-12, 2) have a grade point average of 75(C) or below, a failing grade in one or more subjects, or chronic school absenteeism, 3)come from families that are Income Eligible, and 4) reside and/or attend school within the proposedNeighborhood Development Area. All applicants must meet each of the outlined criteria in order to beaccepted into the programs funded by DHHS. Condition: The Association received three separate awards under the grant with differing eligibility requirements. We reviewed a sample of 25 participants enrolled in the program during the fiscal year across all three awards. For this award (award 450100), we selected a sample of eight participants, of which five participants were not eligible for the program as at least one mandatory criterion from above was not met. Cause: When reviewing the eligibility criteria outlined in the grant agreement for the award, management misinterpreted an applicant to be eligible to participate in the program if one of the four eligibility criteria was met, however, all four of the eligibility criteria must be met for an applicant to be considered eligible for the program. Effect: Management included ineligible participants in the program. Questioned Costs: $109,386 - Management reviewed the entire population of participants (169 for calendar year 2024) for this specific award (award 450100) within the program and determined there were only 11 eligible participants enrolled in the program. Recommendation: We recommend management work with the agency to determine the necessary remediation required for the award. Going forward, we recommend management ensure all eligibility requirements are understood on an individual award basis and communicated to those responsible for determining eligibility for the program. We also recommend periodic monitoring to ensure requirements are documented and met for the individuals enrolled in the program. Repeat Finding in the Prior Year: No Management’s View and Corrective Action Plan: Management’s View and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.