Audit 387353

Finding No. 2025-001 – Timely Preparation of Monthly Grant Expenditure Reports U.S. Department of Health and Human Services Residential Services for Unaccompanied Children Program Assistance Listing Number: 93.676 Criteria – The Organization prepares monthly grant expenditure reports for reimbursement to the grantor to ensure proper expenditure of funds. Condition – During our review of the Organization’s monthly grant expenditure reports, we noted that reports were not filed with the grantor on a timely basis. Cause – Changes in the method of reporting reimbursement requests between grant years caused reimbursement request report to be submitted after the report due date. Effect – Untimely preparation and submission of the reports could result in errors and loss of data making it more difficult to receive approval and reimbursement. Questioned Cost – None Recommendation – We recommend the Organization implement procedures and controls to ensure reports are submitted timely. View of Responsible Officials – The Organization agrees with the comment and is continuing efforts and implementing procedures to ensure all monthly grant expenditure reports are submitted timely and accurately.

Finding No. 2025-002 – Documented Review and Approval of Grant Expenditures U.S. Department of Health and Human Services Residential Services for Unaccompanied Children Program Assistance Listing Number: 93.676 Criteria –Effective internal controls over grant expenditures, including documented review and approval of expenditures must be maintained to ensure costs are allowable. Condition – During our review of a sample of the Organization’s monthly grant expenditures, documentation evidencing management’s review and approval for two of the forty expenditures could not be provided. Although the costs themselves appear consistent with the program’s purpose, the invoices lacked the required signature approval. Cause – Management indicated the exceptions resulted from changes in program personnel.Effect – Absence of documented management approval weakens internal controls over compliance and increases the risk that unallowable costs could be charged to the grant. We did not identify any unallowable costs in these exceptions. Questioned Cost – None Recommendation – We recommend the Organization implement procedures and controls to ensure management’s review and approval of grant expenditures is properly documented. View of Responsible Officials – The Organization agrees with the comment and is continuing efforts and implementing procedures to ensure all grant expenditures document management’s review and approval. - -