YOUTHBUILD LAKE COUNTY, INC.

Finding Number: 2023-001 Data Collection Form Late Submission Repeat Finding: No Questioned Costs: None Funding Agency: Department of Labor Title: Youthbuild AL Numbers: 17.274 Award Year: Youthbuild: 08/15/2022 - 08/14/2023 Condition - The Agency did not submit the June 30, 2023 data collection form and reporting package to the Federal Audit Clearinghouse in a timely matter. Criteria - The Report Submission that is codified in 2 CFR Part 200.512 requires the auditee must submit the applicable data elements of the data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Cause - The Agency's June 30, 2023 audit was not completed prior to the due date. Effect - The Agency was not in compliance with audit submission requirements, resulting in a significant deficiency in internal control over compliance. Recommendations - We recommend the Agency implement systems and procedures to ensure timely completion of its audit and submission of the audit package to the Federal Audit Clearinghouse. View of Responsible Officials - Management agrees with the finding and has committed to a corrective action plan.

There has been changes in our fiscal department that will allow YBLC, Inc to be on time with compliance

FINDING 2019-002 ? CONTROLS OVER SCHEDULE OF FEDERAL AWARDS Condition ? The SEFA was prepared using federal revenues and the major program included revenues that had not yet been expended with a corresponding receivable, thus affecting the proper cutoff of federal grant revenue and misstating the SEFA. Criteria ? Title 2, Subtitle A, Chapter II, Part 200, Subpart F, 200.510 (b), states that the auditee must ?prepare a schedule of expenditures of federal awards for the period covered by the auditee?s financial statements which must include the total federal awards expended as determined in accordance with ?200.502 (basis for determining federal awards expended),? and that the schedule of expenditures of federal awards must (3) ?Provide total federal awards expended for each individual federal program.? Effect ? The major program on the SEFA was misstated as it was revenue, rather than expenditure based and the related revenue was overstated. Revenue was not recognized as expenditures were incurred. This resulted in a journal entry to reduce revenue and the corresponding receivable. Cause ? The individual responsible for the SEFA recorded major program revenue prior to incurring the related expenses. The SEFA was prepared using revenue rather than expenses. Recommendation ? We recommend that the Organization implement a control procedure to review grant agreements and award letters for proper cutoff and ensure the SEFA is properly reported Views of Responsible Officials ? The Organization agrees with the auditors? finding. The Organization will implement procedures and controls whereby the Treasurer, a CPA, will assist the Finance Director in her review of reimbursement grants to ensure that revenue is recorded only to the extent of actual expenditures and that the SEFA is properly reported.

CORRECTIVE ACTION PLAN Audit Firm: Warady & Davis LLP 1717 Deerfield Rd, Suite 300 South, Deerfield, Illinois 60015 Audit Period: Year ending June 30, 2019 A. Comments on Findings and Recommendations: FINDING 2019-001 ? CONTROLS OVER FINANCIAL CLOSING PROCESS YBLC agree with the auditors? finding and the accompanying recommendation that the Organization will implement procedures and controls whereby accounting staff receive adequate training on recording grant and agency transactions and the Finance Director will provide oversight and review all for proper cutoff and classification. FINDING 2019-002 ? CONTROLS OVER FEDERAL AWARDS YBLC agree with the auditors? finding and the accompanying recommendation that the Organization will implement procedures and controls whereby the Treasurer, a CPA, will assist the Finance Director in her review of reimbursement grants to ensure that revenue is recorded only to the extent of actual expenditures, and that the SEFA is properly reported. B. Action Plan: FINDING 2019-001 YBLC plan to implement procedures to ensure accounting staff receive adequate training on recording grant and agency transactions. Responsibility: Finance Director Anticipated Completion Date: June 30, 2020 FINDING 2019-002 YBLC plan to implement procedures that the Treasurer will assist in the review of the reimbursement grants to ensure that revenues is recorded only to the extent of actual expenditures. Responsibility: Finance Director Anticipated Completion Date: June 30, 2020 C. Status of Corrective Actions on Prior Findings: We complied with our prior corrective action from last year. ________________________ ________________________ Lynette Yearwood, Tameka Wilson, Finance Director Executive Director