Audit 410608

Documentation for Eligibility of TANF Program Participants Criteria and Condition: Federal administrative requirements require YWCA Dayton to be responsible for the efficient and effective administration of the Federal Award through application of sound management practices. Context: During testing of participant eligibility for TANF funding, the auditor noted that current management of YWCA Dayton could not locate documentation supporting the demographics or program eligibility for one (1) of the ten (10) program participants selected for eligibility testing. Cause: Turnover within YWCA Dayton staff caused there to be certain intake forms which could not be located and provided for testing. Effect: If controls are not in place to ensure the maintenance of documentation of participant demographics and certifications for eligibility, then there could be unallowable costs and activities charged to the Federal Award. Recommendation: We recommend that YWCA Dayton establish effective policies and procedures to ensure the completion and maintenance of intake forms for all program participants. View of Responsible Officials: YWCA Dayton agrees with the finding and will implement the recommendation.

Calculation of Indirect Costs for Continuum of Care (CoC) programs Criteria and Condition: The Indirect Cost Toolkit for Continuum of Care (CoC) and Emergency Solutions Grants (ESG) Programs issued by the U.S. Department of Housing and Urban Development provides specific criteria for costs which are eligible to be included in calculation of the Modified Total Direct Costs (MTDC) used in determining allowable indirect costs. Context: During testing of monthly CoC reimbursement requests it was noted that the 10% de minimus cost rate was applied to all costs included in each reimbursement request, including rental assistance payments which are specifically excluded from the calculation of the MTDC in accordance with the Indirect Cost Toolkit. Cause: YWCA Dayton staff did not have the appropriate knowledge and understanding of CoC program requirements to ensure that only eligible costs were being included in the calculation of the MTDC. Effect: If controls are not in place to ensure that only eligible costs were being included in the calculation of the MTDC, then there could be ineligible costs included in the calculation of the MTDC which would result in an incorrect amount for indirect costs being requested for reimbursement. Questioned Costs: $33,570 Recommendation: We recommend that YWCA Dayton establish effective policies and procedures to ensure the calculation of the MTDC is accurate and includes only eligible costs in accordance with program guidelines. View of Responsible Officials: YWCA Dayton agrees with the finding and will implement the recommendation.

Documentation of Reasonable Rental Rates for CoC programs Criteria and Condition: Federal administrative requirements require YWCA Dayton to be responsible for the efficient and effective administration of the Federal Award through application of sound management practices. Context: During testing of rental assistance payments for the reasonableness of rental rates, the auditor noted that current management of YWCA Dayton could not locate documentation supporting the reasonableness of rental rates for one (1) of the ten (10) rental assistance payments selected for testing of reasonable rental rates in accordance with special tests and provisions. Cause: Turnover within YWCA Dayton staff caused there to be certain rent reasonableness forms which could not be located and provided for testing. Effect: If controls are not in place to ensure the maintenance of documentation to support the reasonableness of rental assistance payments, then there could be unallowable costs and activities charged to the Federal Award. Recommendation: We recommend that YWCA Dayton establish effective policies and procedures to ensure the completion and maintenance of rent reasonableness forms for all program participants. View of Responsible Officials: YWCA Dayton agrees with the finding and will implement the recommendation.