Audit 369964

2024-002 – Head Start Special Reporting - Significant Deficiency in Internal Control over Compliance Department of Health and Human Services AL # 93.600 Head Start Cluster Federal Grantor/ Pass-Through Grantor Grant Number Grant Period U.S. Department of Health and Human Services 07CH011972-03 04/01/23 – 03/31/24 U.S. Department of Health and Human Services 07CH011972-04 04/01/24 – 03/31/25 Questioned Costs: None How were questioned costs computed: Not applicable Condition: Young Women’s Christian Association of Metropolitan St. Louis, Inc. did not report subaward data through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) in a timely manner. The following is a summary of the results of audit testing for compliance with this requirement: Transactions Tested Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements 0 0 2 0 2 Dollar Amount of Tested Transactions Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements $233,706 $0 $233,706 $7,004 $0 Repeat of prior year finding: Yes, repeat of prior year finding 2023-001 Criteria: The Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) (Transparency Act) that are codified in 2 CFR Part 170 requires subaward actions be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made. Cause: Management was unclear on the Transparency Act reporting requirements that subaward actions be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made and that the obligation is based on the contract and not the monthly expenditure. Effect: Because of the above conditions, reporting was completed late during the year and based on monthly expenditures. Recommendation: We recommend that Young Women’s Christian Association of Metropolitan St. Louis, Inc. establish procedures to ensure it reports all subaward information by the last day of the month following the month in which the subaward/subaward amendment obligation was made. View of Responsible Officials: Management agrees with the assessment and has committed to a corrective action plan.

2024-003 – Head Start Equipment and Real Property Management - Significant Deficiency in Internal Control over Compliance Department of Health and Human Services AL # 93.600 Head Start Cluster Federal Grantor/ Pass-Through Grantor Grant Number Grant Period U.S. Department of Health and Human Services 07CH011972-03 04/01/23 – 03/31/24 U.S. Department of Health and Human Services 07CH011972-04 04/01/24 – 03/31/25 Questioned Costs: None How were questioned costs computed: Not applicable Condition: Young Women’s Christian Association of Metropolitan St. Louis, Inc. did follow the capitalization policy for capitalizing property and equipment funded by Head Start. Repeat of prior year finding: No Criteria: Equipment purchases exceeding $5,000 that were approved by Head Start must be properly listed in the program's official equipment inventory. Cause: The Organization experienced turnover in key financial positions during the year and after year end that impacted the year end close process as the Organization did not have a formal year end close set of procedures. Effect: Because of the above conditions, equipment purchases exceeding $5,000, that were approved by Head Start, were initially expensed, and were adjusted to property and equipment during the audit. The equipment needs to be added to the program's official equipment inventory. Recommendation: We recommend that Young Women’s Christian Association of Metropolitan St. Louis, Inc. establish a month end or year end process to review expenditures for items that should be capitalized in accordance with the Organization's capitalization policy and then add those capitalized items to the Head Start inventory listing. View of Responsible Officials: Management agrees with the assessment and has committed to a corrective action plan.

2024-004 – Head Start Allowable Costs - Significant Deficiency in Internal Control over Compliance Department of Health and Human Services AL # 93.600 Head Start Cluster Federal Grantor/ Pass-Through Grantor Grant Number Grant Period U.S. Department of Health and Human Services 07CH011972-03 04/01/23 – 03/31/24 U.S. Department of Health and Human Services 07CH011972-04 04/01/24 – 03/31/25 Questioned Costs: $207,765 How were questioned costs computed: Allocation of salary Condition: Young Women’s Christian Association of Metropolitan St. Louis, Inc. included an employee's salary in the indirect cost calculation that exceeded the Executive Level II rate. Repeat of prior year finding: No Criteria: Notwithstanding any other provision of law, no Federal funds may be used to pay any part of the compensation of an individual employed by a Head Start agency, if such compensation, including non-Federal funds, exceeds an amount equal to the rate payable for level II of the Executive Schedule under section 5313 of title 5. Cause: The Organization paid deferred bonuses to the employee during the year ended December 31, 2024, which lead to the employee being over the threshold. Due to turnover in key financial positions, the employee's compensation was not removed from the indirect calculation completed monthly. Effect: Because of the above conditions, compensation was charged to Head Start and Early Head Start programs that should have been excluded. Recommendation: We recommend that Young Women’s Christian Association of Metropolitan St. Louis, Inc. establish a policy to review all compensation projected for the year, including anticipated bonuses, to determine if an employee will be over the threshold for Level II of the Executive Schedule. If an employee is over that threshold, they should be excluded from any direct costs or indirect costs charged to the programs. View of Responsible Officials: Management agrees with the assessment and has committed to a corrective action plan.