Audit 410833

Criteria: Per Title 2 CFR.200.512(d), "the data collection form must be submitted within the earlier of 30 calendar days after receipt of the auditor's report, or nine months after the end of the audit period. The Organization's Data Collection Form for the year ended June 30, 2024 was due by March 31, 2025. Condition: The Organization did not file their Data Collection Form on time in accordance with the Single Audit Act requirements. The Data Collection Form was not filed until June 6, 2025. Cause: The audit report was not issued until May 23, 2025 due to the prior director not having the financial statements and supporting documentation ready for the audit in a timely manner. Effect: The Organization was not in compliance with the reporting deadline. Questioned Costs: None. Context: The Data Collection Form must be submitted to the Federal Audit Clearinghouse in a timely manner. The report was filed 67 days late. Repeat Finding: No. Recommendation: We recommend that all required filings be submitted timely according to the Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations Guidelines. Views of Responsible Officials: We have hired a new Director and Finance Director and will esure the Data Collection Form is submitted timely going forward.

Federal Program: Youth Homelessness Demonstration Program (14.276). Criteria: Federal cash management requirements generally require recipients to minimize the time elapsing between the receipt of federal funds and their disbursement for allowable program costs. In addition, interest earned on the federal advance payments deposited in interest-bearing accounts is generally required to be remitted to the federal government, except for amounts that may be retained for administrative expenses as permitted by applicable federal regulations and award terms. Condition: During the year ended June 30, 2025, the Organization earned $4,221 of interest on federal program funds. The Organization did not remit the applicable interest earned to the federal government or otherwise document that the interest was exempt from remittance under applicable cash management requirement. Cause: The Organization did not follow their internal controls put in place to identify, track, and evaluate interest earned on federal program funds. Effect: Noncompliance with federal cash management requirements. The Organization may be subject to repay the obligations or other remedies may be imposed by the federal awarding agency or pass-through agency. Questioned Costs: $4,221. Context: Total federal grant funds earned during the year ended June 30, 2025 were $2,504,423. Repeat Finding: No. Recommendation: The Organization should follow their established internal control procedures to identify and track interest earned on federal program funds, determine the amount required to be remitted in accordance with applicable federal regulations and award terms, and remit such amounts timely to the appropriate federal agency or pass-through agency. Views of Responsible Officials: We have implemented procedures to request funds on a reimbursement basis. This should minimize federal funds earning interest. We will work to ensure that our established procedures to identify and track interest earned on federal program funds are followed and remit the funds accordingly, if necessary.

Federal Program: Youth Homelessness Demonstration Program (14.276). Criteria: Internal controls should be in place to ensure that all supporting documentation is received and maintained in the participant files before benefits are provided to ensure eligibility. Condition: During our eligibility testing, we noted that 16 of 51 participants tested did not have supporting documentation. Four participant files could not be located, ten participant files did not have supporting documentation for date of birth, and three participant files did not have supporting documentation of the three categories of homelessness. All errors noted were from files administered by subrecipients. All were identified by the Organization and rectified after the fiscal year end. Cause: The Organization was utilizing subrecipients during the fiscal year June 30, 2025 to determine eligibility of participants. When the Organization took over these files, some of the subrecipient's information that was maintained in HMIS for these participants was locked and could no longer be accessed while some of the information was not received or could not be located. Effect: Benefits could be provided to people that are not eligible to participate in the program. Questioned Costs: None. Context: Total expenditures for the year ended June 30, 2025 for the program were $2,486,473. Repeat Finding: No. Recommendation: The Organization should establish internal control procedures to ensure that all proper documentation to support eligibility for participation in the program is maintained and readily available in the participant file. Views of Responsible Officials: We have established better internal controls with new program directors in place. Additionally, determination is made within the Organization along with files being maintained onsite.

Federal Program: Youth Homelessness Demonstration Program (14.276). Criteria: All Quarterly Progress Reports and Annual Progress Report should be reviewed to ensure accuracy before submission. The review should be documented. Condition: There is no documented review of the Quarterly Progress Reports or Annual Progress Report. Cause: The Compliance Specialist preparing the reports was unaware that someone should be reviewing and documenting their review to ensure accuracy before submitting the reports. Effect: Incorrect information could be submitted to the Department of Housing and Urban Development and not be detected in a timely manner. Questioned Costs: None. Context: Total expenditures for the year ended June 30, 2025 for the program were $2,486,47. Repeat Finding: No. Recommendation: The Organization should establish internal control procedures to ensure that the Quarterly Reports and Annual Reports are reviewed by the YHDP Grant Coordinator to ensure accuracy before submission. This review should be documented. Views of Responsible Officials: We will ensure the reports are being reviewed and the review is being documented going forward.