Finding 501070 (2023-001)

Department of Health and Human Services AL # 93.600 Head Start Cluster Federal Grantor/ Pass-Through Grantor Grant Number Grant Period U.S. Department of Health and Human Services 07CH011972-02 04/01/22 – 03/31/23 U.S. Department of Health and Human Services 07CH011972-03 04/01/23 – 03/31/24 U.S. Department of Health and Human Services 07HE0004130103 01/01/23-12/31/23 Questioned Costs: None How were questioned costs computed: Not applicable Condition: Young Women’s Christian Association of Metropolitan St. Louis, Inc. did not report subaward data through the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) in a timely manner. The following is a summary of the results of audit testing for compliance with this requirement: Transactions Tested Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements 10 0 10 0 10 Dollar Amount of Tested Transactions Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements $2,780,007 $0 $2,780,007 $0 $0 In addition, Young Women’s Christian Association of Metropolitan St. Louis, Inc. did not submit a complete SF- 429-A report in 2023. The SF-429-A filed in 2023 did not include one property acquired with Head Start funding in a prior year. A Notice of Federal Interest was filed for this property in a prior year. Repeat of prior year finding: Yes, repeat of prior year finding 2022-002 Criteria: The Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) (Transparency Act) that are codified in 2 CFR Part 170 requires subaward actions be reported in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made. SF-429 – Real Property Status Report and SF-429-A General Reporting (OMB No. 4040-0016). These forms are filed annually based upon the end of the budget period. The annual SF-429 is required for all grantees and must indicate whether the grantee has reportable real property. If so, a separate SF-429-A must be completed for each parcel of real property reported and accompany the annual SF429. Cause: Management was unaware of the Transparency Act reporting requirements when Young Women’s Christian Association of Metropolitan St. Louis, Inc. made subgrant awards. Management was unaware of the requirement to include all reportable property on the SF-429-A report. Effect: Because of the above conditions, a material non-compliance and a material weakness in internal control over compliance exists. Recommendation: We recommend that Young Women’s Christian Association of Metropolitan St. Louis, Inc. establish procedures to ensure it is aware of all terms and conditions of its grant awards. View of Responsible Officials: Management agrees with the assessment and has committed to a corrective action plan.