Audit 372803

FY End
2024-12-31
Total Expended
$5.60M
Findings
3
Programs
12
Organization: Youthcare (WA)
Year: 2024 Accepted: 2025-12-02
Auditor: CLARK NUBER P S

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1163273 2024-002 Material Weakness Yes L
1163274 2024-002 Material Weakness Yes L
1163275 2024-002 Material Weakness Yes L

Contacts

Name Title Type
CFGTG72BCFL9 Marty Hartman Auditee
2066944500 Kelly Rancourt Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of YouthCare under programs of the federal government for the year ended December 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of YouthCare, it is not intended to and does not present the financial position, changes in net assets, or cash flows of YouthCare.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. YouthCare has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
YouthCare has one federal loan outstanding that is forgivable or can be extended after 50 years at the expiration of the term of the loan if YouthCare complies with all of the terms and conditions of the loan documents. YouthCare is required to report compliance with the continuing use requirement that the facilities financed with the loans provide services to low and moderate income persons in the specific category of homeless youth. The expiration date of the loan is July 31, 2067. The total outstanding loan balance for the years ended December 31, 2024 was $666,775.

Finding Details

Significant deficiency in internal controls over compliance related to reporting. Federal Agency: Department of Justice Department of Labor Program Title: Services for Trafficking Victims Community Project Funding/Congressionally Directed Spending Assistance Listing Number: 16.320 17.289 Award Numbers: 15POVC-24-GG-00883-MINO and 15POVC-22-GG-03855-HT; 23A60CP000069-01-00 Project Period: October 1, 2024 ‐ September 30, 2027 and October 1, 2022 ‐ September 30, 2025 June 1, 2023 ‐ May 31, 2026 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires a nonfederal entity to establish a system of internal controls in order to ensure compliance with compliance requirements under federal awards. Condition/Context for Evaluation During the audit for the year ending December 31, 2024, we noted two instances out of four there was no evidence of review and approval over the financial quarterly reports related to reporting of the federal award. Questioned Costs None. Cause The Organization’s internal controls were not sufficient to ensure documentation was retained of review and approval for submission for required reporting. Effect or Potential Effect Without proper approval or evidence of approval, the Organization could submit reports with errors or that do not comply with the criteria requirements under Uniform Guidance. Repeat Finding Not Applicable. Recommendation We recommend that management develop internal controls for documentation of review and approval of report submissions under the grant. Views of Responsible Officials of Auditee Management concurs with the finding and has provided the accompanying management corrective action.