BETHANY HOME, INC.

2023-001 ALLOWABLE COST, CASH MANAGEMENT, AND PERIOD OF PERFORMANCE - SIGNIFICANT DEFICIENCY Federal Program Unaccompanied Alien Children Program ALN 93.676 Criteria Part 3 of the Compliance Supplement indicates non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)). Part 3 of the Compliance Supplement indicates a non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)). A period of performance may contain one or more budget periods. Condition/Cause In July 2022, the Home requested reimbursement and received funding to cover costs that had not yet been incurred or paid for as of June 30, 2023. Effect The Home was reimbursed for costs that were not incurred during the budget period. Additionally, the Home has held onto grant funds for twelve plus months. Questioned Costs Known questioned costs are $52,841. Context The Home budgeted to have new fire alarms installed in the cottages during the July 1, 2021 - June 30, 2022 grant budget period. Due to supply chain issues and labor shortages the alarms were not installed until the Fall of 2023 at which time the Home paid the contractor. Repeat Finding No. Recommendation We recommend the Home contact the funding agency to inquire about returning the funds and any interest earned. We also recommend that the Home revisit and strengthen internal controls over allowable activities, allowable costs, cash management, and period of availability related to grant programs. Management Response See corrective action plan included in this report package.

2019-001 REPORTING - SIGNIFICANT DEFICIENCY Federal Programs Foster Care - Title IV-E CFDA 93.658; Passed through County Children and Youth Services; Grant Period 7/1/18-6/30/19 Criteria Provider agencies must submit to the County Children and Youth Services Agencies discharge summaries and safety assessments as required by the County Children and Youth Services Agencies and/or in accordance with U.S. Department of Health and Human Services regulations. The reports should be submitted in the format prescribed by the County Children and Youth Services Agencies and within the designated timeframe. Condition/Cause The Organization did not timely file all required reports, and, in some instances, reports were not filed at all. Effect The Organization was not in compliance with the reporting requirements that are part of the grant agreement between the Organization and County Children and Youth Services Agencies. This noncompliance could affect future grant expenditure reimbursement payments. Questioned Costs None noted. Context Out of a sample of 40 from a population of 211 clients served during the fiscal year, there were two instances in which a safety plan was not completed, 8 instances where discharge summaries were not filed timely, and 5 instances of the discharge summaries not being completed at all. Repeat Finding No. Recommendation Client files should be monitored throughout the year to determine that all required reports are being completed timely and accurately. Management Response See corrective action plan included in this report package.