Finding #2024-001 – Material Weakness and Other Noncompliance. Applicable federal programs: U. S. Department of State, 19.510, U. S. Refugee Admissions Program, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, SPRMCO24CA0353, 05/01/24 – 12/31/24, SPRMCO23CA0369, 10/01/23 – 09/30/24, SPRMCO23CA0367, 10/01/24 – 09/30/25, SPRMCO24CA0350, U. S. Department of Health and Human Services, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/23 – 09/30/24, 2402VARVMG-00, 93.576, Refugee and Entrant Assistance Discretionary Grants, Passed through U. S. Committee for Refugees and Immigrants: 09/30/24 – 09/29/25, GPK5RHKAEUGS, 09/30/23 – 09/29/24, 90RP0119, 09/30/22 – 09/29/23, 90RP0119-01-01, 09/30/24 – 09/29/25, 90RP0119, 09/30/22 – 09/29/23, 90RP0119, 09/30/23 – 09/29/24, 90RP0119-02-04, 93.676, Unaccompanied Children Program, 01/01/24 – 12/31/26, 90X40630-01-00. Condition and context: During our testing of a sample of 9 expenditures requiring procurement, we identified that a competitive procurement for $2.1 million of contracted janitorial expenditures greater was not performed. Recommendation: Provide additional training to employees responsible for procurement on the YMCA’s procurement policy. Management’s response: Management agrees with the finding. The organization’s janitorial services for all locations is a contract where we are aware of significant inflationary pressures among our provider and their peers. Procurement was not performed as a way to maintain the existing relationship with the current provider that has not passed their rising costs on to us due to the long-standing relationship. However, these services will be procured in 2025 to ensure best practices and adherence to our policy. Responsible officer: Jennifer Garcia, Chief Financial Officer. Estimated completion date: September 2025.