Audit 409373

Finding 2025-002 – Material Weakness – Schedule of Expenditures of Federal Awards (SEFA) Federal Grantor: Corporation for National and Community Service Passed-through: Office of Planning Research California Volunteers Pass-through Grantor’s No.: 24ACIY31-C190 / 20AFHMN0010013-23 / 23AFEMN0010003-24 /22AFBMD0020011 / 22AFBMD0020018 / 22AFGMS001 / 22AFINV0010014 / 21AFEWI0010022 Compliance Requirement: Reporting Condition: During the course of the single audit, IYT provided three successive versions of the Schedule of Expenditures of Federal Awards (SEFA). The initial version included only the expenditures of grant funds received through California Volunteers and reflected an incorrect amount. The second version corrected the California Volunteers amount but omitted the other pass-through entities. The final version included expenditures from all passthrough entities. Earlier versions did not fully reconcile to the accounting system. Criteria: 2 CFR 200.508(b) and 2 CFR 200.510 require the auditee to prepare a complete and accurate SEFA that includes all federal awards received and expended, including correct pass-through entity information and expenditures. Effective internal controls must ensure the SEFA is accurate, supported by records, and prepared timely (OMB Compliance Supplement, Part 6). Effect: The submission of multiple inaccurate and incomplete versions of the SEFA during the audit delayed the engagement, increased the risk of misstatement, and could have affected major program determination and federal reporting. This constitutes a material weakness in internal control over compliance due to the significance of AmeriCorps funding. This finding relates to entity-wide reporting controls and did not have a direct and material effect on compliance with the requirements applicable to any individual major federal program. Cause: Inadequate processes existed for identifying, tracking, and reconciling federal award data from multiple passthrough entities, combined with insufficient management review and oversight. Recommendation: IYT needs to develop and implement a formal process for preparing the SEFA that includes identifying and tracking all federal awards, performing timely reconciliations to the accounting system and passthrough entity reports, conducting reviews and approvals, and providing training to staff on Uniform Guidance requirements. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding. IYT implemented a formal, documented process for preparing the Schedule of Expenditures of Federal Awards (SEFA) that addresses completeness, accuracy, and reporting of pass-through information. IYT maintains a document that identifies all federal awards received and expended, including each pass-through entity, pass-through identifying number, and award period, so that every funding source is captured. Federal expenditures are reconciled to the general ledger and to each pass-through entity's reports on a scheduled basis throughout the year, and total SEFA expenditures are compared to federal revenue recognized in the financial statements. The SEFA is subject to a documented preparer-and-reviewer control, and IYT will not designate the SEFA as final until it is complete, fully reconciled to the accounting system and supporting records, and reviewed and approved by management. Finance staff received training on the SEFA preparation and reporting requirements of 2 CFR 200.508(b) and 200.510, including the identification and reporting of pass-through awards. A complete, fully reconciled, and reviewed SEFA is prepared prior to the start of the FY 2026 audit.

Finding 2025-003 – Significant Deficiency – Late Submission of Single Audit Federal Grantor: Corporation for National and Community Service Passed-through: Office of Planning Research California Volunteers Pass-through Grantor’s No.: 24ACIY31-C190 / 20AFHMN0010013-23 / 23AFEMN0010003-24 / 22AFBMD0020011 / 22AFBMD0020018 / 22AFGMS001 / 22AFINV0010014 / 21AFEWI0010022 Compliance Requirement: Reporting Condition: IYT submitted its Audited Financial Statements and Single Audit Report to the federal clearinghouse in August 2026, 5 months after it was due. Criteria: IYT was required to submit its Audited Financial Statements and Single Audit Report to the federal audit clearinghouse no later than March 31, 2026, nine months after the fiscal year-end (2 Code of Federal Regulations §200.512). Effect: Federal awarding agencies may deny future federal awards or subject IYT to additional cash monitoring requirements. This finding was not a result of internal control over individual federal programs and, accordingly, did not have a direct and material effect on the reporting requirements over IYT’s major federal programs. Cause: IYT did not to prepare its Audited Financial Statements and Schedule of Expenditures of Federal Awards in a timely manner due to turnover in personnel. Recommendation: IYT needs to ensure that it can close its books and submit its Audited Financial Statements and Single Audit Report to the federal audit clearinghouse no later than the statutory reporting deadline. Views of Responsible Officials and Planned Corrective Actions: Management concurs with the finding. IYT's prior corrective action committed to on-time submission but did not establish the controls needed to make that commitment hold: it relied on the intent to submit on time rather than on a dated, back-scheduled calendar with an owner for each step and a checkpoint to catch slippage early. When the FY24-25 audit timeline slipped, there was no interim milestone to surface the delay while it could still be recovered, and the report was again submitted late. IYT acknowledges and accepts the responsibility for late submission. Meeting the FAC deadline is IYT's responsibility and remains so even where individual steps sit with the audit firm or with governance. IYT will establish a compliance calendar built by working backward from the Federal Audit Clearinghouse (FAC) statutory deadline, with defined interim milestones and an owner assigned to each by position: engagement of the audit firm and confirmation of fieldwork dates; completion of the year-end close; delivery of the prepared-by-client (PBC) list; fieldwork; draft report; management review; Finance Committee and Board review; and final FAC submission and certification. IYT's timeline depends on inputs from the audit firm (scheduling, fieldwork and reporting turnaround, and draft-review cycles) and from governance (Audit Committee and Board review windows). IYT manages these inputs to the deadline rather than treating them as outside its control: target dates are agreed with the auditors and committee chairs in advance and confirmed in writing, and if any party is at risk of missing a date, IYT escalates and adjusts immediately rather than absorbing the delay. Progress against every milestone is monitored by management and reported to the Audit Committee as a standing agenda item, so slippage is identified and escalated early rather than discovered near the deadline.