Audit 403823

FY End
2025-12-31
Total Expended
$16.40M
Findings
15
Programs
16
Year: 2025 Accepted: 2026-06-16

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1217660 2025-005 Material Weakness Yes B
1217661 2025-006 Material Weakness Yes B
1217662 2025-008 Material Weakness Yes E
1217663 2025-005 Material Weakness Yes B
1217664 2025-006 Material Weakness Yes B
1217665 2025-008 Material Weakness Yes E
1217666 2025-005 Material Weakness Yes B
1217667 2025-006 Material Weakness Yes B
1217668 2025-008 Material Weakness Yes E
1217669 2025-005 Material Weakness Yes B
1217670 2025-006 Material Weakness Yes B
1217671 2025-007 Material Weakness Yes G
1217672 2025-008 Material Weakness Yes E
1217673 2025-005 Material Weakness Yes B
1217674 2025-006 Material Weakness Yes B

Contacts

Name Title Type
GPK5RHKAEUG5 Lauren Rome Auditee
7137589126 Laurie Gutierrez Auditor
No contacts on file

Notes to SEFA

Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized in the YMCA’s financial statements in conformity with generally accepted accounting principles. The YMCA has elected to use the 15% de minimus cost rate for indirect costs. Because the schedule presents only a selected portion of the operations of the YMCA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the YMCA.
Food commodities are reported in the schedule of expenditures of federal awards as federal expenditures when distributed and are valued at the weighted-average wholesale value of one pound of donated product based on the national per pound price as provided by the most recent Feeding America Product Valuation Survey ($1.90 in 2025).
In fiscal year 2024, the U. S. Refugee Admissions Program Resettlement – Reception and Placement ERMA Grant (Award #27) revenue was understated by $187,327. The revenue was recognized in fiscal year 2025 to accurately reflect inception to date revenue for the award. In fiscal year 2024, an allowance of $281,000 for government agency contributions for the Refugee and Entrant Assistance Voluntary Agency Programs Refugee and Entrant Assistance – Matching Grant Program for potential grant reversions. In fiscal year 2023, an allowance of $200,000 for the same program was recorded for recoupment of potential unallowable costs. These allowances were reversed in fiscal year 2025 resulting in additional government agency contributions of $481,000.

Finding Details

Finding #2025-007 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, 2502VARVMG, 10/01/23 – 09/30/24, 2402VARVMG. Criteria: Matching, Level of Effort and Earmarking 45 CFR 75 306 stipulates that matching funds must meet the following criteria: 1) verifiable from organization’s records, 2) not included as contributions for any other federal award, 3) are necessary and reasonable for accomplishment of project or program objectives, 4) are allowable under Uniform Guidance Subpart E, 5) are not paid by the federal government under another federal award except where federal statute allows, and 6) are included in approved budget when required by Health and Human Services agency. Additionally, internal controls should ensure that donated goods and services are valued at fair value, are documented, and to the extent feasible, supported by the same methods used internally by the organization. Condition and context: During our testing of 40 transactions reported as matching grant costs, we identified one exception totaling $2,679 with lack of documentation of fair value of in-kind donations. Repeat of finding #2024-003. Cause: Failure to follow the YMCA’s policies and procedures related to the valuation and documentation of in-kind items for the match grant. Questioned costs: $2,679. Effect: Lack of documentation of the determination of the fair value of in-kind items may result in an overstatement of match reported and failure to meet match requirements. Recommendation: Provide additional training and emphasize adherence to established policies and procedures to ensure maintenance of documentation for valuation documentation. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.
Finding #2025-008 – Eligibility – Material Weakness and Material Noncompliance. Applicable federal programs: U. S. Department of Health and Human Services, 93.566, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Passed through Texas Office for Refugees: 10/01/24 – 09/30/25, FFY2025-27946V-ASA RSS, 10/01/24 – 09/30/25, FFY2025-27946V-AUSAA-RSS, 10/01/24 – 09/30/25, FFY2025-27946V-CMA, 10/01/24 – 09/30/25, FFY2025-27946V-RSS, Passed through United States Conference of Catholic Bishops: 10/01/24 – 09/30/25, 25RSI13A, Passed through U. S. Committee for Refugees: 10/01/24 – 09/30/25, RHP-2025-YMCA-Houston TX-03, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, 2502VARVMG, 10/01/23 – 09/30/24, 2402VARVMG. Criteria: Eligibility – The YMCA is responsible for having internal control procedures for its client intake process to ensure that only eligible clients are served and documentation of their eligibility is maintained. Condition and context: The following exceptions were noted in the testing of eligibility and maintenance of documentation: Refugee and Entrant Assistance State/Replacement Designee Administered Programs – 25 out of 40 files tested for eligibility and maintenance of documentation were incomplete and lacked information to support the eligibility of the participants, and 5 out of 40 files could not be located. Refugee and Entrant Assistance Voluntary Agency Programs – 11 out of 40 files tested for eligibility and maintenance of documentation were incomplete and lacked information to support the eligibility of the participants. Effect: Failure to follow eligibility guidelines and maintain documentation of the determination of eligibility could result in ineligible participants being served. Recommendation: Strengthen policies and procedures to ensure the documentation and retention of eligibility determinations. Views of responsible officials: Management agrees with the finding. See Corrective Action Plan.
Finding #2025-005 – Material Weakness and Other Noncompliance. Applicable federal programs: U. S. Department of Health and Human Services, 93.566, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Passed through Texas Office for Refugees: 10/01/24 – 09/30/25, FFY2025-27946V-ASA RSS, 10/01/24 – 09/30/25, FFY2025-27946V-AUSAA-RSS, 10/01/24 – 09/30/25, FFY2025-27946V-CMA, 10/01/24 – 09/30/25, FFY2025-27946V-RSS, Passed through United States Conference of Catholic Bishops: 10/01/24 – 09/30/25, 25RSI13A, Passed through U. S. Committee for Refugees: 10/01/24 – 09/30/25, RHP-2025-YMCA-Houston TX-03, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, 2502VARVMG, 10/01/23 – 09/30/24, 2402VARVMG, 93.676, Unaccompanied Alien Children Program, Passed through U. S. Committee for Refugees and Immigrants: 01/01/25 – 12/31/25, 90ZU0630-02. Criteria: 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 requires recipients and subrecipients of federal funds to establish, document, and maintain effective internal control over federal awards that provides reasonable assurance that the recipient is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, section 200.403 indicates that costs charged to federal awards must be necessary and reasonable for the performance of the program and be adequately documented. Condition and context: Same as finding #2025-001. Cause: Same as finding #2025-001. Effect: Same as finding #2025-001. Questioned costs: $1,275. Recommendation: Same as finding #2025-001. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.
Finding #2025-006 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Health and Human Services, 93.566, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Passed through Texas Office for Refugees: 10/01/24 – 09/30/25, FFY2025-27946V-ASA RSS, 10/01/24 – 09/30/25, FFY2025-27946V-AUSAA-RSS, 10/01/24 – 09/30/25, FFY2025-27946V-CMA, 10/01/24 – 09/30/25, FFY2025-27946V-RSS, Passed through United States Conference of Catholic Bishops: 10/01/24 – 09/30/25, 25RSI13A, Passed through U. S. Committee for Refugees: 10/01/24 – 09/30/25, RHP-2025-YMCA-Houston TX-03, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, 2502VARVMG, 10/01/23 – 09/30/24, 2402VARVMG, 93.676, Unaccompanied Alien Children Program, Passed through U. S. Committee for Refugees and Immigrants: 01/01/25 – 12/31/25,90ZU0630-02. Criteria: The Uniform Guidance section 200.303 requires recipients and subrecipients of federal funds to establish, document, and maintain effective internal control over federal award that provides reasonable assurance that the recipient is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Section 200.403 of the Uniform Guidance requires costs be recorded in accordance with generally accepted accounting principles. Such controls ensure that costs are charged to federal awards in the period of performance. Condition and context: Same as finding #2025-004. Cause: Same as finding #2025-004. Effect: Same as finding #2025-004. Questioned costs: $7,929. Recommendation: Same as finding #2025-004. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.