Audit 400298

#2025-001 – Major Federal Award Finding – Period of Performance Nature of Finding: Compliance Finding Period of Performance and Material Weakness in Internal Controls over Compliance This is a repeat of prior year finding #2024-004. Criteria/Condition: Federal regulations 2 CFR 200.1 provide that a non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. The Organization did not have controls in place to verify that costs were being charged to the award in the correct period of performance. Questioned Costs: $1,687 Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $21,000 was selected from a population of approximately $359,000 of non-payroll direct expenditures. An amount of $1,293 from one invoice that was charged to the Crime Victim Assistance program was related to the year ending September 30, 2024 and was inappropriately charged to the grant during 2025. Two additional invoices had service dates from both the years ending September 30, 2025 and September 30, 2024, and were inappropriately charged in their entirety to the grant during 2025. The portion relating to the year ending September 30, 2024 totaled approximately $394 from these invoices. Cause/Context: Controls were put in place to review invoices and assign them to the appropriate grant period; however, these controls were not operating as designed. One expenditure out of forty non-payroll related expenditures tested for the Crime Victim Assistance grant was for services provided in the prior performance period and was initially billed to the grant during 2025. Two additional expenditures tested were for contracted monthly services that covered multiple performance periods but were billed in its entirety to the Crime Victim Assistance grant in 2025. Effect: An overstatement of expenditures for the Crime Victim Assistance grant was reported in the current year. Recommendation: We recommend procedures are consistently performed to review for proper grant period when recording transactions and creating monthly reimbursement requests. Views of Responsible Officials and Planned Corrective Actions: The YWCA has implemented (January 2025) the following changes in its accounting procedures: • The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice. • The CFO will review the month, and year noted by the Staff Accountant prior to entry into accounts payable.

#2025-002 – Major Federal Award Finding – Allocation of Costs Nature of Finding: Compliance Finding Allowable Costs and Material Weakness in Internal Controls over Compliance This is a repeat of elements of prior year finding #2024-005. Criteria/Condition: Federal regulations 2 CFR 200.405 provide that costs benefiting two or more projects in proportions that can be easily determined must be allocated to the projects based on the proportional benefit. If proportions cannot be easily determined, the costs may be allocated to the benefited projects on a reasonable and documented basis. Questioned Costs: $ 670 Identification of How Questioned Costs Were Computed: A sample of 40 non-payroll expenditures totaling approximately $21,000 was selected from a population of approximately $359,000 of non-payroll direct expenditures. Certain costs charged to the major program from two invoices did not have a properly supported methodology for the allocation percentages that were utilized. The portion of these invoices charged to the Crime Victim Assistance program totaled $670. Cause/Context: For 2 of the 40 non-payroll expenditures selected for testing, costs were allocated to the major program based on available grant funding allocation percentages, rather than proportional to the benefit provided. Controls were not properly in place to evaluate the allocation of costs to grants based on proportional benefit provided to each grant. Effect: Expenditures that involve an allocation of costs between grants are not properly supported. The lack of controls results in questioned costs as a disproportionate amount of expenditures may be charged to the federal program. Recommendation: We recommend management establish procedures and controls to allocate all costs between grants based upon actual costs attributed to the grant and the particular expenditure allowed by the grant. Any such allocations should be supported by activity-level substantiation. Documentation of the allocation methodology, review and approval should be maintained. Views of Responsible Officials and Planned Corrective Actions: Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO. The Organization implemented this process during the year ended September 30, 2025 but discovered that corrections were not made to the entire process of allocations. This process has been improved subsequent to September 30, 2025.

#2025-003 – Major Federal Award Finding – Reporting Nature of Finding: Compliance Finding Reporting and Significant Deficiency in Internal Controls over Compliance Criteria/Condition: Federal regulations 2 CFR 200.328 - 200.329 provide that required reporting under the federal program must be completed timely and accurately. The federal award agreement includes specific report filing due dates. We noted during testing of 12 different required reports, including both financial and performance reports, that 2 of these reports tested were not filed in a timely manner. Cause/Context: Controls were not in place to ensure timely reporting. Two performance reports tested were submitted one day late. Effect: A lack of controls could result in late or missed reporting. Recommendation: We recommend the Organization establish procedures and controls to ensure financial and performance reports are filed timely. Views of Responsible Officials and Planned Corrective Actions: The Organization’s program leadership is playing a more active role in reporting and compliance and is actively involving directors of programs in the process of reporting.