Finding 561446 (2024-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-05-23

AI Summary

  • Core Issue: The required completion report for the Preschool Development Grant was submitted 5 days late, indicating a failure in internal controls.
  • Impacted Requirements: Timely reporting as mandated by the grant manual from the U.S. Department of Health and Human Services.
  • Recommended Follow-Up: Improve processes to ensure all reports are submitted on time to avoid future compliance issues.

Finding Text

Item: 2024-002 Assistance Listing Number: 93.434 Program: Every Student Succeeds Act/Preschool Development Grants Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: State of Arizona Contract Number: 90TP0087-01-00 Award Year: January 1, 2024 – September 30, 2024 Compliance Requirement: Reporting Criteria: Per the Preschool Development grant (“PDG”) manual provided by the grantor, a completion report is required to be submitted at the end of each grant award period. Condition: Required report was not submitted to the granting agency timely. Questioned Costs: Unknown Context: In our testing of the Cohort-1 grant awarded under PDG, we tested the one completion report due within 3 months of the period end, which was September 30, 2024. The submission was submitted 5 days after the required due date. This is deemed to be a material weakness in internal control over compliance. Effect: The system of internal controls was not properly implemented to ensure timely report submission. Cause: The Association did not have a process to confirm/verify the due date for this report. Upon notification from the granting agency, the Association submitted the required report. Identification as a Repeat Finding: Not a repeat finding. Recommendation: The Association should enhance its processes and controls to ensure that required reports are submitted to granting agencies by the required due dates. Views of Responsible Officials: Management of the Association concurs with the finding. See Corrective Action Plan.

Corrective Action Plan

Assistance Listing Number: 2024-002 Program: 93.434 Federal Agency: Every Student Succeeds Act/Preschool Development Grants Pass-Through Agencies: U.S. Department of Health and Human Services Contract State of Arizona Number: 90TP0087-01-00 Award Year: January 1, 2024 – September 30, 2024 Compliance Requirement: Reporting Criteria: Per the Preschool Development grant (“PDG”) manual provided by the grantor, a completion report is required to be submitted at the end of each grant award period. Condition: Required report was not submitted to the granting agency timely. Name of Contact Person: Connie Nelson, Chief Administration Officer Phone Number: 480-695-8799 Anticipated Completion Date: May 31, 2025 Views of Responsible Officials and Corrective Actions: The current YMCA Grant tracking form will be updated to include reporting requirement dates. The Associate Vice President of Finance (AVP) will maintain a calendar of all grant reporting requirements. The calendar will be populated as grants are awarded and reporting deadlines will be clarified with the governmental agencies if questions arise. The tracking form is reviewed twice monthly and is accessible to all members of the Finance team tasked with grant reporting and will be monitored by the AVP and Sr. Vice President of Finance.

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 561445 2024-001
    Significant Deficiency
  • 1137887 2024-001
    Significant Deficiency
  • 1137888 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.67M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.26M
93.434 Every Student Succeeds Act/preschool Development Grants $951,632
17.259 Wioa Youth Activities $916,930
17.289 Community Project Funding/congressionally Directed Spending $190,687
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $119,833
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $112,737
14.218 Community Development Block Grants/entitlement Grants $93,268
17.280 Wioa Dislocated Worker National Reserve Demonstration Grants $33,416