Finding 399965 (2023-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-06-05

AI Summary

  • Core Issue: The YMCA did not include federal food commodity contributions in its financial statements, leading to significant underreporting.
  • Impacted Requirements: This finding violates the Uniform Guidance for preparing the Schedule of Expenditures of Federal Awards (SEFA).
  • Recommended Follow-Up: Implement new policies to ensure all in-kind donations are identified and recorded across all YMCA locations.

Finding Text

Finding #2023-002 – Material Weakness and Material Noncompliance. Applicable federal programs: U. S. Department of Agriculture: Passed through The Houston Food Bank, 10.182, Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes and Local Governments, Contract periods and grant #’s: 10/01/22 – 09/30/23 1922, 10/01/23 – 09/30/24 1922, 10.187, The Emergency Food Assistance Program (TEFAP) Commodity Credit Corporation Eligible Recipient Funds (Food Commodities), Contract periods and grant #’s: 10/01/22 – 09/30/23 1922, 10/01/23 – 09/30/24 1922, 10.558, Child and Adult Care Food Program (Food Commodities), Contract periods and grant #’s: 10/01/22 – 09/30/23 1922, 10/01/23 – 09/30/24 1922, 10.559, Summer Food Service Program for Children (Food Commodities), Contract period and grant #: 10/01/22 – 09/30/23 1922, 10.569 Emergency Food Assistance Program (Food Commodities), Contract periods and grant #’s: 10/01/22 – 09/30/23 1922, 10/01/23 – 09/30/24 1922, Passed through The Montgomery County Food Bank, 10.569 Emergency Food Assistance Program (Food Commodities), Contract periods and grant #’s: 10/01/22 – 09/30/23 20601, 10/01/23 – 09/30/24 20601. Criteria: Schedule of Expenditures of Federal Awards – In accordance with the Uniform Guidance §200.508 and §200.510, management is to prepare a schedule of expenditures of federal wards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended. Condition and context: The YMCA failed to include federal contributions of food commodities in its financial statements and its SEFA for fiscal years 2022 and 2023.. Cause: The YMCA failed to have procedures in place to identify and record in-kind contributions at all of its locations. Effect: Federal in-kind contributions and the direct assistance expenses were understated by $2,033,864 in the YMCA’s SEFA for fiscal year 2023 and by $1,706,466 in fiscal year 2022. Recommendation: Develop policies and procedures to identify and record in-kind donations at all YMCA sites. Views of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Categories

Reporting Procurement, Suspension & Debarment Material Weakness

Other Findings in this Audit

  • 399962 2023-002
    Material Weakness
  • 399963 2023-002
    Material Weakness
  • 399964 2023-002
    Material Weakness
  • 399966 2023-002
    Material Weakness
  • 399967 2023-002
    Material Weakness
  • 399968 2023-003
    Material Weakness Repeat
  • 399969 2023-004
    Significant Deficiency Repeat
  • 399970 2023-003
    Material Weakness Repeat
  • 399971 2023-004
    Significant Deficiency Repeat
  • 399972 2023-003
    Material Weakness Repeat
  • 399973 2023-003
    Material Weakness Repeat
  • 399974 2023-005
    Material Weakness
  • 399975 2023-003
    Material Weakness Repeat
  • 399976 2023-003
    Material Weakness Repeat
  • 976404 2023-002
    Material Weakness
  • 976405 2023-002
    Material Weakness
  • 976406 2023-002
    Material Weakness
  • 976407 2023-002
    Material Weakness
  • 976408 2023-002
    Material Weakness
  • 976409 2023-002
    Material Weakness
  • 976410 2023-003
    Material Weakness Repeat
  • 976411 2023-004
    Significant Deficiency Repeat
  • 976412 2023-003
    Material Weakness Repeat
  • 976413 2023-004
    Significant Deficiency Repeat
  • 976414 2023-003
    Material Weakness Repeat
  • 976415 2023-003
    Material Weakness Repeat
  • 976416 2023-005
    Material Weakness
  • 976417 2023-003
    Material Weakness Repeat
  • 976418 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.676 Unaccompanied Alien Children Program $5.87M
93.567 Refugee and Entrant Assistance_voluntary Agency Programs $3.08M
93.576 Refugee and Entrant Assistance_discretionary Grants $1.79M
93.566 Refugee and Entrant Assistance_state Administered Programs $982,079
84.287 Twenty-First Century Community Learning Centers $872,838
16.575 Crime Victim Assistance $751,119
10.558 Child and Adult Care Food Program $464,458
16.320 Services for Trafficking Victims $431,480
10.187 Emergency Food Assistance Program (tefap)commodity Credit Corporation Eligible Recipient Funds (food Commodities) $380,839
10.559 Summer Food Service Program for Children $301,213
97.010 Citizenship Education and Training $134,264
84.215 Fund for the Improvement of Education $121,479
19.510 U.s. Refugee Admissions Program $51,081
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $48,154
10.569 Emergency Food Assistance Program (food Commodities) $31,701
10.182 Local Food Purchase Assistance $22,072