EIN: 421051609
UEI: NWR8MD4CNYC7
Audited by: CliftonLarsonAllen LLP
Oversight agency: 21 [Department of the Treasury]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on April 20, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by October 20, 2026 (53 days from today).
What is a management decision? →During our testing we noted internal controls over expenditures were not properly followed. Questioned Costs: None Context: During our testing we noted construction pay applications from March 2023 – August 2023 did not have documented review. Cause: Project Manager was not in place prior to September 2023 to properly review pay applications. Effect: The auditor noted no instances of noncompliance with the allowability of costs or support for costs; the lack of internal controls over expenditures provides an opportunity for noncompliance. Repeat Finding: Yes, 2024-003 Recommendation: We recommend the Organization ensure proper review and approval over expenditures. Views of Responsible Officials: There is no disagreement with the finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP4374, 2021 Pass-Through Agency: Iowa Economic Development Authority Pass-Through Number: 23-INIA-023 Award Period: September 14, 2022 – September 30, 2026 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Section 200.303 requires entities to establish and maintain effective internal controls over Federal Awards. Condition: During our testing we noted internal controls over expenditures were not properly followed. Questioned Costs: None Context: During our testing we noted construction pay applications from March 2023 – August 2023 did not have documented review. Cause: Project Manager was not in place prior to September 2023 to properly review pay applications. Effect: The auditor noted no instances of noncompliance with the allowability of costs or support for costs; the lack of internal controls over expenditures provides an opportunity for noncompliance. Repeat Finding: Yes, 2024-003 Recommendation: We recommend the Organization ensure proper review and approval over expenditures. Views of Responsible Officials: There is no disagreement with the finding.
Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Recommendation: The Organization should ensure proper review and approval over expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: YSS engaged a project manager in September 2023 to provide oversight on the two major construction projects taking place, Rooftop Gardens and Ember Campus. The project manager reviews the work being performed to ensure alignment with the progress billing on the monthly AIA pay applications. The project manager submits the invoice for approval to the CFO who, with the CEO, approves payment and the invoice is sent YSS accounts payable to processes payment. Name of the contact person responsible for corrective action: Danielle Fineran Planned completion date for corrective action plan: June 30, 2026
2024-003
FAC accepted this audit on July 29, 2025 — management decision was due January 29, 2026.
During our testing we noted internal controls over expenditures were not properly followed. Questioned Costs: None Context: 2 of the 25 expenditures selected for testing did not have documented review. Cause: Project Manager was not in place from July 2023 – August 2023 to properly review pay applications. Effect: The auditor noted no instances of noncompliance with the allowability of costs or support for costs; the lack of internal controls over expenditures provides an opportunity for noncompliance. Repeat Finding: Not a repeat finding. Recommendation: We recommend the Organization ensure proper review and approval over expenditures. Views of Responsible Officials: There is no disagreement with the finding.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP4374, 2021 Pass-Through Agency: Iowa Economic Development Authority Pass-Through Number: 23-INIA-023 Award Period: September 14, 2022 – September 30, 2026 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award Section 200.303 requires entities to establish and maintain effective internal controls over Federal Awards. Condition: During our testing we noted internal controls over expenditures were not properly followed. Questioned Costs: None Context: 2 of the 25 expenditures selected for testing did not have documented review. Cause: Project Manager was not in place from July 2023 – August 2023 to properly review pay applications. Effect: The auditor noted no instances of noncompliance with the allowability of costs or support for costs; the lack of internal controls over expenditures provides an opportunity for noncompliance. Repeat Finding: Not a repeat finding. Recommendation: We recommend the Organization ensure proper review and approval over expenditures. Views of Responsible Officials: There is no disagreement with the finding.
Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Recommendation: The Organization should ensure proper review and approval over expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: YSS engaged a project manager in September 2023 to provide oversight on the two major construction projects taking place, Rooftop Gardens and Ember Campus. The project manager reviews the work being performed to ensure alignment with the progress billing on the monthly AIA pay applications. The project manager submits the invoice for approval to the CFO who, with the CEO, approves payment and the invoice is sent YSS accounts payable to processes payment. Name of the contact person responsible for corrective action: Mark VanderLinden Planned completion date for corrective action plan: June 30, 2025
FAC accepted this audit on March 29, 2024 — management decision was due September 29, 2024.
Assistance Listing Number 93.550 – Transitional Living for Homeless Youth U.S. Department of Health and Human Services Criteria Federal program requirements require the grant recipient agency to retain information sufficient to support the costs for which it has requested reimbursement. Information should be sufficient to support the allowability of the cost under the federal program and that the costs have not been utilized under a separate federal program. Condition Expenses for the transitional living program are not segregated to an individual cost center, but rather recorded within a broader program budget. Monthly, the Organization’s billing department manually determines costs specifically associated with the transitional living program. However, these calculations were not maintained and staff were unable to recreate the supporting schedules for the amounts billed for non-payroll related costs. Cause Internal processes of the billing department did not require staff to retain schedules for the amounts billed. Turnover within the department since year end resulted in new staff assigned to the grant being unable to recreate the detail prepared by their predecessor. Effect The Organization is unable to support non-payroll costs reimbursed under the grant during the fiscal year ended June 30, 2023, totaling approximately $167,000. Recommendation Billing methodologies should be documented within a centralized location so as to allow other staff members to access and review the methodologies. Support should be retained for all balances requested for reimbursement.
Show full finding ▾Hide full finding ▴Assistance Listing Number 93.550 – Transitional Living for Homeless Youth U.S. Department of Health and Human Services Criteria Federal program requirements require the grant recipient agency to retain information sufficient to support the costs for which it has requested reimbursement. Information should be sufficient to support the allowability of the cost under the federal program and that the costs have not been utilized under a separate federal program. Condition Expenses for the transitional living program are not segregated to an individual cost center, but rather recorded within a broader program budget. Monthly, the Organization’s billing department manually determines costs specifically associated with the transitional living program. However, these calculations were not maintained and staff were unable to recreate the supporting schedules for the amounts billed for non-payroll related costs. Cause Internal processes of the billing department did not require staff to retain schedules for the amounts billed. Turnover within the department since year end resulted in new staff assigned to the grant being unable to recreate the detail prepared by their predecessor. Effect The Organization is unable to support non-payroll costs reimbursed under the grant during the fiscal year ended June 30, 2023, totaling approximately $167,000. Recommendation Billing methodologies should be documented within a centralized location so as to allow other staff members to access and review the methodologies. Support should be retained for all balances requested for reimbursement.
As mentioned previously, there was a staffing change with a grant billed which helped make YSS aware of an internal control breakdown in the billing process. Along with the issue where revenue was posted but invoices were not sent, it was also found that many workpapers that should have been in place to support the invoices were disorganized, lacked an audit trail, or in some cases did exist aside from a handful of brief notes, especially in cases where grants were drawn in 1/12th increments. While many worksheets were created or greatly enhanced already, the grant billers are currently engaging in a new process to begin cost tracking for the grants which have allowed 1/12th without consistently asking for such supporting workpapers.
Assistance Listing Number 93.550 – Transitional Living for Homeless Youth U.S. Department of Health and Human Services Criteria Federal program requirements require the grant recipient to submit semi-annual and annual performance and financial reports to the grantor within 30 and 90 days of the end of the reporting period. Condition For the one semi-annual financial report selected for testing, the report was never filed with the grantor agency. Cause A comprehensive schedule of grant reporting requirements is not retained by the Organization. The Organization does not have a mechanism to allow senior management to review grant reports submitted and those remaining to be submitted. Effect The Organization did not comply with the semi-annual reporting requirement of the grant award. Recommendation Management should investigate opportunities to develop a comprehensive schedule of grant financial reporting requirements. Management should delegate responsibilities for completing these reports to appropriate personnel and monitor the completeness of the assignments.
Show full finding ▾Hide full finding ▴Assistance Listing Number 93.550 – Transitional Living for Homeless Youth U.S. Department of Health and Human Services Criteria Federal program requirements require the grant recipient to submit semi-annual and annual performance and financial reports to the grantor within 30 and 90 days of the end of the reporting period. Condition For the one semi-annual financial report selected for testing, the report was never filed with the grantor agency. Cause A comprehensive schedule of grant reporting requirements is not retained by the Organization. The Organization does not have a mechanism to allow senior management to review grant reports submitted and those remaining to be submitted. Effect The Organization did not comply with the semi-annual reporting requirement of the grant award. Recommendation Management should investigate opportunities to develop a comprehensive schedule of grant financial reporting requirements. Management should delegate responsibilities for completing these reports to appropriate personnel and monitor the completeness of the assignments.
Finance leadership will work with grant managers, grant billers, and program managers to develop a schedule of compliance due dates for report submission to help ensure that all grant programs remain compliant with reporting requirements.
All Federal Programs Criteria The schedule of expenditures of federal awards (SEFA) must include all expenditures of federal awards during the year under audit, along with other identifying information. Condition The SEFA prepared by the Organization’s staff required significant adjustments and additions by the auditor in order to properly recognize all federal award expenditures. Cause Staff responsible for maintaining the SEFA may lack the training necessary to ensure its completeness and accuracy. The SEFA was not reviewed by senior members of the finance team after its preparation. Effect The internally prepared SEFA was inaccurate and required correction in order to remain compliant with federal requirements. Recommendation Additional training may be necessary for the staff responsible for maintaining the SEFA. Processes should be established to identify unique or new federal awards throughout the year. The SEFA should be reviewed and approved by senior finance staff prior to its completion.
Show full finding ▾Hide full finding ▴All Federal Programs Criteria The schedule of expenditures of federal awards (SEFA) must include all expenditures of federal awards during the year under audit, along with other identifying information. Condition The SEFA prepared by the Organization’s staff required significant adjustments and additions by the auditor in order to properly recognize all federal award expenditures. Cause Staff responsible for maintaining the SEFA may lack the training necessary to ensure its completeness and accuracy. The SEFA was not reviewed by senior members of the finance team after its preparation. Effect The internally prepared SEFA was inaccurate and required correction in order to remain compliant with federal requirements. Recommendation Additional training may be necessary for the staff responsible for maintaining the SEFA. Processes should be established to identify unique or new federal awards throughout the year. The SEFA should be reviewed and approved by senior finance staff prior to its completion.
As identified, with the change in our lead grant biller, the new grant biller commendably updated the SEFA schedule, but lacked the training to reconcile the schedule to other existing documents and did not present the SEFA schedule to finance leadership for review prior to submission to the auditor. This was discussed during review, and finance leadership worked alongside the grant biller, using the reconciliation process as an opportunity to provide training.
FAC accepted this audit on November 30, 2020 — management decision was due May 30, 2021.
Finding 2020-001 ? Patient Receivables Condition The net realizable value of patient receivable balances was materially overstated in management?s preliminary financial statements. During the course of our audit procedures, we identified a significant number of patient accounts which do not appear collectible and may require write-off. In addition, services performed during the final week of the fiscal year were not identified and recorded to the Organization?s preliminary financial statements due to the transition to a new billing system on June 29, 2020. Criteria Accounting standards require health care entities to report patient receivable balances at the amount the entity anticipates being entitled to, allowing for contractual adjustments, price concessions, and other reductions in gross charges to report receivables at their net realizable value. Outstanding patient balances should be investigated in a timely manner. Balances which are uncollectible should be written-off as identified. For financial reporting purposes, all transactions and events up to the date of the financial statements should be identified and reported. Cause While management has implemented improved financial reporting procedures over patient service revenues since the prior year, management?s estimates of the net realizable value of patient receivables did not sufficiently take into consideration aged balances within the Organization?s receivable ledger which are unlikely to be collected upon. Staff were not timely writing off balances of patient accounts which are no longer collectable. A change in the Organization?s billing system resulted in some services not being captured in the Organization?s patient receivable balances at the end of the fiscal year. Effect The Organization?s internal financial statements were materially misstated and required adjustments in order to conform with generally accepted accounting principles. Recommendation Management?s estimates of the net realizable value of patient receivables should be evaluated to determine whether adequate allowances against aged balances are being taken. Staff should strive to ensure aged balances are being written-off when identified as uncollectible. Processes and systems should be implemented to ensure financial information on patient services includes all transactions from the reporting period. Views of Responsible Officials Throughout FY2020 YSS implemented a process that allowed us to capture and book contractual adjustments on a monthly basis through our general ledger. We also implemented a process that allowed us to get month-end reports from our billing system that could be used to reconcile to our general ledger. A monthly reconciliation was done to ensure the accuracy of the receivable balance to the billing system reports. Write-offs identified were included with the monthly reporting being provided by billing to finance. These write-offs were for various reasons and on a monthly basis were not material amounts. One entry was done at year-end for all write-offs identified throughout the year. Through the audit process we did identify and determine additional balances that should be written-off due to the inability to collect and those have been considered in the allowance booked. At year-end, a review of aged patient receivables was performed and a calculation for an allowance was done. This calculation was done based on an increased percentage for each 30 day aged category and took into consideration what was known around collectability. After working with the auditor on methodology to use for patient receivables we should be able to better assess trends by payer going forward to ensure we have an adequate allowance booked and be able to adjust more frequently throughout the fiscal year which will also be easier to do with our new billing system. We implemented a new Client Management System (CMS) as of June 29, 2020 that is an electronic health record and billing system. This new system allows for real-time reporting and tracking that the legacy CMS system did not have. Reporting is much more robust in the new system which has allowed for more transparency to the services and claim detail. Fee schedules are set-up for each payer so that the contractual adjustment is automatically calculated on every claim for reporting and general ledger recording, which the legacy system did not have ability to do. This will allow us to get system reports that show balances on claims owed more accurately and timely. All commercial insurance and Medicaid payers will be set-up to have electronic remittance advices that will feed into the system so that all payments and adjustments can be automatically applied to a claim without manual input. This should ensure timely and accurate posting of payments and adjustments that will be reflected in the general ledger timely on a monthly basis as the new system does have general ledger reporting that is being utilized.
Show full finding ▾Hide full finding ▴Finding 2020-001 ? Patient Receivables Condition The net realizable value of patient receivable balances was materially overstated in management?s preliminary financial statements. During the course of our audit procedures, we identified a significant number of patient accounts which do not appear collectible and may require write-off. In addition, services performed during the final week of the fiscal year were not identified and recorded to the Organization?s preliminary financial statements due to the transition to a new billing system on June 29, 2020. Criteria Accounting standards require health care entities to report patient receivable balances at the amount the entity anticipates being entitled to, allowing for contractual adjustments, price concessions, and other reductions in gross charges to report receivables at their net realizable value. Outstanding patient balances should be investigated in a timely manner. Balances which are uncollectible should be written-off as identified. For financial reporting purposes, all transactions and events up to the date of the financial statements should be identified and reported. Cause While management has implemented improved financial reporting procedures over patient service revenues since the prior year, management?s estimates of the net realizable value of patient receivables did not sufficiently take into consideration aged balances within the Organization?s receivable ledger which are unlikely to be collected upon. Staff were not timely writing off balances of patient accounts which are no longer collectable. A change in the Organization?s billing system resulted in some services not being captured in the Organization?s patient receivable balances at the end of the fiscal year. Effect The Organization?s internal financial statements were materially misstated and required adjustments in order to conform with generally accepted accounting principles. Recommendation Management?s estimates of the net realizable value of patient receivables should be evaluated to determine whether adequate allowances against aged balances are being taken. Staff should strive to ensure aged balances are being written-off when identified as uncollectible. Processes and systems should be implemented to ensure financial information on patient services includes all transactions from the reporting period. Views of Responsible Officials Throughout FY2020 YSS implemented a process that allowed us to capture and book contractual adjustments on a monthly basis through our general ledger. We also implemented a process that allowed us to get month-end reports from our billing system that could be used to reconcile to our general ledger. A monthly reconciliation was done to ensure the accuracy of the receivable balance to the billing system reports. Write-offs identified were included with the monthly reporting being provided by billing to finance. These write-offs were for various reasons and on a monthly basis were not material amounts. One entry was done at year-end for all write-offs identified throughout the year. Through the audit process we did identify and determine additional balances that should be written-off due to the inability to collect and those have been considered in the allowance booked. At year-end, a review of aged patient receivables was performed and a calculation for an allowance was done. This calculation was done based on an increased percentage for each 30 day aged category and took into consideration what was known around collectability. After working with the auditor on methodology to use for patient receivables we should be able to better assess trends by payer going forward to ensure we have an adequate allowance booked and be able to adjust more frequently throughout the fiscal year which will also be easier to do with our new billing system. We implemented a new Client Management System (CMS) as of June 29, 2020 that is an electronic health record and billing system. This new system allows for real-time reporting and tracking that the legacy CMS system did not have. Reporting is much more robust in the new system which has allowed for more transparency to the services and claim detail. Fee schedules are set-up for each payer so that the contractual adjustment is automatically calculated on every claim for reporting and general ledger recording, which the legacy system did not have ability to do. This will allow us to get system reports that show balances on claims owed more accurately and timely. All commercial insurance and Medicaid payers will be set-up to have electronic remittance advices that will feed into the system so that all payments and adjustments can be automatically applied to a claim without manual input. This should ensure timely and accurate posting of payments and adjustments that will be reflected in the general ledger timely on a monthly basis as the new system does have general ledger reporting that is being utilized.
The corrective action plan was documented in our response to the auditor's comment. See the Schedule of Findings and Questioned Costs.
2019-001
Finding 2020-002 ? Grant and Contract Billings Condition In multiple instances, we identified grant and contract billing errors which had not been corrected within the Organization?s internal financial statements, resulting in misstatement of certain grant revenues and receivables. In addition, we identified certain instances in which billings were not performed in the timeline defined by the contract. In addition, during our testing of the Organization?s Continuum of Care federal award, we identified three instances in which rental assistance was billed to the grant for a property which was not authorized by the grant award. Criteria Billings and invoicing on contracts should be performed accurately and timely, as defined within the contract or grant agreement. Corrections and adjustments to revenue recognized should be recorded to the subsidiary ledgers timely. Cause While staff had implemented procedures to ensure the reconciliation of the subsidiary sales modules to the financial statements, review and identification of erroneously reported balances was not being performed timely. Sufficient processes and safeguards have not been implemented to ensure the accurate and timely issuance of grant billings. Effect The Organization?s internal financial statements required correcting entries in order to properly recognize grants and contracts receivables and revenue. Lack of timely and accurate billings may have adverse impacts on the Organization?s cash flows. The Organization may not be in compliance with certain grant awards. Recommendation Along with reconciling the subsidiary ledgers to the financial statements, staff should review outstanding balances for accuracy. Adjustments to the subsidiary ledgers should be performed when identified. Management should review internal processes and workloads to determine whether improvements can be made to billing timeliness and accuracy. Views of Responsible Officials YSS Finance did implement a control back in April 2020, outside of audit recommendations. In the Grant Billing Tracking Sheet we added a column for invoice submission date so that there is visibility to when a billing is submitted. We also added a column for billing notes so that if a billing has not been submitted timely there is a note for why it hasn?t been submitted and what the issue is. YSS Finance does balance sheet reconciliations on a monthly basis to ensure that what is in the general ledger reconciles to the sub ledger, which in the case of receivables is the sales module for grants. We are now including revenue reconciliation along with our receivables reconciliation monthly to ensure that revenue is also accurate. YSS Management identified the need for capacity in the Grant Billing role and a second Grant Biller position has been added to the Finance Accountability Chart. This position has been filled and we are in the process of training.
Show full finding ▾Hide full finding ▴Finding 2020-002 ? Grant and Contract Billings Condition In multiple instances, we identified grant and contract billing errors which had not been corrected within the Organization?s internal financial statements, resulting in misstatement of certain grant revenues and receivables. In addition, we identified certain instances in which billings were not performed in the timeline defined by the contract. In addition, during our testing of the Organization?s Continuum of Care federal award, we identified three instances in which rental assistance was billed to the grant for a property which was not authorized by the grant award. Criteria Billings and invoicing on contracts should be performed accurately and timely, as defined within the contract or grant agreement. Corrections and adjustments to revenue recognized should be recorded to the subsidiary ledgers timely. Cause While staff had implemented procedures to ensure the reconciliation of the subsidiary sales modules to the financial statements, review and identification of erroneously reported balances was not being performed timely. Sufficient processes and safeguards have not been implemented to ensure the accurate and timely issuance of grant billings. Effect The Organization?s internal financial statements required correcting entries in order to properly recognize grants and contracts receivables and revenue. Lack of timely and accurate billings may have adverse impacts on the Organization?s cash flows. The Organization may not be in compliance with certain grant awards. Recommendation Along with reconciling the subsidiary ledgers to the financial statements, staff should review outstanding balances for accuracy. Adjustments to the subsidiary ledgers should be performed when identified. Management should review internal processes and workloads to determine whether improvements can be made to billing timeliness and accuracy. Views of Responsible Officials YSS Finance did implement a control back in April 2020, outside of audit recommendations. In the Grant Billing Tracking Sheet we added a column for invoice submission date so that there is visibility to when a billing is submitted. We also added a column for billing notes so that if a billing has not been submitted timely there is a note for why it hasn?t been submitted and what the issue is. YSS Finance does balance sheet reconciliations on a monthly basis to ensure that what is in the general ledger reconciles to the sub ledger, which in the case of receivables is the sales module for grants. We are now including revenue reconciliation along with our receivables reconciliation monthly to ensure that revenue is also accurate. YSS Management identified the need for capacity in the Grant Billing role and a second Grant Biller position has been added to the Finance Accountability Chart. This position has been filled and we are in the process of training.
The corrective action plan was documented in our response to the auditor's comment. See the Schedule of Findings and Questioned Costs.
2019-002
Finding 2020-003 ? Schedule of Expenditures of Federal Awards All Federal Programs Grant Period ? July 1, 2019 through June 30, 2020 Condition The Schedule of Expenditures of Federal Awards (SEFA) prepared by Youth and Shelter Services, Inc. (YSS) for the audit required significant adjustments and additions by the auditor to include all programs required to be shown on the SEFA. Criteria The SEFA must include all expenditures of federal grants during the year under audit and properly identify program?s CFDA number. Cause Discrepancies in the billings of certain federal awards resulted in staff?s identified program expenses being incorrect. In certain instances, staff did not identify the correct federal program number or identify program expenditures which were federally funded. Effect Not including all federal expenditures on the SEFA could result in incorrect calculations for the selection of major programs to be tested for compliance. Recommendation Management should obtain a listing of all grants funded either directly or indirectly by the federal government. Upon signing a new grant agreement, management should review the grant document and determine whether it should be added to this listing or not. At the end of the year, when preparing the SEFA, management should ensure all programs maintained on the listing of federal programs are included in the SEFA. Views of Responsible Officials YSS Grant Biller does maintain a list of grants and those that have federal funding. The SEFA did include all of our annual federal grants that we bill for on a monthly basis. These grants did have adjustments to the expenditure amounts based on final review of claims. YSS did inadvertently leave off federal awards related to more untraditional funding that was a one-time award for a capital project that appeared to be locally funded but was, in fact, federal. YSS is putting a better process in place for identifying all federal funds and to ensure that correct federal expenditure amounts can be more easily identified and accurately reported in the SEFA provided to auditors.
Show full finding ▾Hide full finding ▴Finding 2020-003 ? Schedule of Expenditures of Federal Awards All Federal Programs Grant Period ? July 1, 2019 through June 30, 2020 Condition The Schedule of Expenditures of Federal Awards (SEFA) prepared by Youth and Shelter Services, Inc. (YSS) for the audit required significant adjustments and additions by the auditor to include all programs required to be shown on the SEFA. Criteria The SEFA must include all expenditures of federal grants during the year under audit and properly identify program?s CFDA number. Cause Discrepancies in the billings of certain federal awards resulted in staff?s identified program expenses being incorrect. In certain instances, staff did not identify the correct federal program number or identify program expenditures which were federally funded. Effect Not including all federal expenditures on the SEFA could result in incorrect calculations for the selection of major programs to be tested for compliance. Recommendation Management should obtain a listing of all grants funded either directly or indirectly by the federal government. Upon signing a new grant agreement, management should review the grant document and determine whether it should be added to this listing or not. At the end of the year, when preparing the SEFA, management should ensure all programs maintained on the listing of federal programs are included in the SEFA. Views of Responsible Officials YSS Grant Biller does maintain a list of grants and those that have federal funding. The SEFA did include all of our annual federal grants that we bill for on a monthly basis. These grants did have adjustments to the expenditure amounts based on final review of claims. YSS did inadvertently leave off federal awards related to more untraditional funding that was a one-time award for a capital project that appeared to be locally funded but was, in fact, federal. YSS is putting a better process in place for identifying all federal funds and to ensure that correct federal expenditure amounts can be more easily identified and accurately reported in the SEFA provided to auditors.
The corrective action plan was documented in our response to the auditor's comment. See the Schedule of Findings and Questioned Costs.
2019-005
FAC accepted this audit on February 4, 2020 — management decision was due August 4, 2020.
Finding 2019-001 ? Financial Reporting Condition There were numerous audit adjustments needed to ensure the financial statements are fairly presented in accordance with generally accepted accounting principles. While the errors permeated throughout the Organization?s financial records, the most significant matters noted were as follows: ? The Organization does not have a process to ensure accurate reporting of patient receivables. Staff are unable to identify amounts owed to the Organization for services performed. ? Grants receivable were not accurately recorded to the Organization?s financial statements. Significant adjustments were required to correctly report these balances. ? Donor contributions, including outstanding promises to give, were not accurately recorded in the Organization?s financial statements. Significant adjustments were required to correctly report these balances. ? Net assets with donor restrictions were not being adequately monitored. As a result, donor-restricted contributions were not recorded correctly in multiple instances. Criteria The Organization?s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting, and the preparation of the financial statements for external purposes, in accordance with generally accepted accounting principles. Cause Internal control procedures necessary to produce reliable financial records are either not in place or are not effective. Effect The Organization?s internal financial statements were materially misstated and required significant adjustments in order to conform with generally accepted accounting principles. Recommendation The Organization should implement processes and procedures to ensure the accuracy and reliability of financial records. Views of Responsible Officials Management has implemented processes to ensure accurate financial reporting which also allows for ease of identifying balances owed to the organization. Specifically, a new accounting structure has been put in place as of July 1, 2019 to allow for simplicity in how revenue and expenses are recorded, which ensures data is accurately tracked and identified. The grants billing process has been enhanced to allow for more accountability of spending, reconciliation, and ensure compliance. The process for donor-restricted contributions is in the process of being enhanced, along with an addition to staff, to create consistency between the organizations? ERP and Donor Database to ensure better tracking, reconciliation, and compliance with intent of the contribution. Finding 2019-001 ? Financial Reporting Condition There were numerous audit adjustments needed to ensure the financial statements are fairly presented in accordance with generally accepted accounting principles. While the errors permeated throughout the Organization?s financial records, the most significant matters noted were as follows: ? The Organization does not have a process to ensure accurate reporting of patient receivables. Staff are unable to identify amounts owed to the Organization for services performed. ? Grants receivable were not accurately recorded to the Organization?s financial statements. Significant adjustments were required to correctly report these balances. ? Donor contributions, including outstanding promises to give, were not accurately recorded in the Organization?s financial statements. Significant adjustments were required to correctly report these balances. ? Net assets with donor restrictions were not being adequately monitored. As a result, donor-restricted contributions were not recorded correctly in multiple instances. Criteria The Organization?s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting, and the preparation of the financial statements for external purposes, in accordance with generally accepted accounting principles. Cause Internal control procedures necessary to produce reliable financial records are either not in place or are not effective. Effect The Organization?s internal financial statements were materially misstated and required significant adjustments in order to conform with generally accepted accounting principles. Recommendation The Organization should implement processes and procedures to ensure the accuracy and reliability of financial records. Views of Responsible Officials Management has implemented processes to ensure accurate financial reporting which also allows for ease of identifying balances owed to the organization. Specifically, a new accounting structure has been put in place as of July 1, 2019 to allow for simplicity in how revenue and expenses are recorded, which ensures data is accurately tracked and identified. The grants billing process has been enhanced to allow for more accountability of spending, reconciliation, and ensure compliance. The process for donor-restricted contributions is in the process of being enhanced, along with an addition to staff, to create consistency between the organizations? ERP and Donor Database to ensure better tracking, reconciliation, and compliance with intent of the contribution.
Show full finding ▾Hide full finding ▴Finding 2019-001 ? Financial Reporting Condition There were numerous audit adjustments needed to ensure the financial statements are fairly presented in accordance with generally accepted accounting principles. While the errors permeated throughout the Organization?s financial records, the most significant matters noted were as follows: ? The Organization does not have a process to ensure accurate reporting of patient receivables. Staff are unable to identify amounts owed to the Organization for services performed. ? Grants receivable were not accurately recorded to the Organization?s financial statements. Significant adjustments were required to correctly report these balances. ? Donor contributions, including outstanding promises to give, were not accurately recorded in the Organization?s financial statements. Significant adjustments were required to correctly report these balances. ? Net assets with donor restrictions were not being adequately monitored. As a result, donor-restricted contributions were not recorded correctly in multiple instances. Criteria The Organization?s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting, and the preparation of the financial statements for external purposes, in accordance with generally accepted accounting principles. Cause Internal control procedures necessary to produce reliable financial records are either not in place or are not effective. Effect The Organization?s internal financial statements were materially misstated and required significant adjustments in order to conform with generally accepted accounting principles. Recommendation The Organization should implement processes and procedures to ensure the accuracy and reliability of financial records. Views of Responsible Officials Management has implemented processes to ensure accurate financial reporting which also allows for ease of identifying balances owed to the organization. Specifically, a new accounting structure has been put in place as of July 1, 2019 to allow for simplicity in how revenue and expenses are recorded, which ensures data is accurately tracked and identified. The grants billing process has been enhanced to allow for more accountability of spending, reconciliation, and ensure compliance. The process for donor-restricted contributions is in the process of being enhanced, along with an addition to staff, to create consistency between the organizations? ERP and Donor Database to ensure better tracking, reconciliation, and compliance with intent of the contribution. Finding 2019-001 ? Financial Reporting Condition There were numerous audit adjustments needed to ensure the financial statements are fairly presented in accordance with generally accepted accounting principles. While the errors permeated throughout the Organization?s financial records, the most significant matters noted were as follows: ? The Organization does not have a process to ensure accurate reporting of patient receivables. Staff are unable to identify amounts owed to the Organization for services performed. ? Grants receivable were not accurately recorded to the Organization?s financial statements. Significant adjustments were required to correctly report these balances. ? Donor contributions, including outstanding promises to give, were not accurately recorded in the Organization?s financial statements. Significant adjustments were required to correctly report these balances. ? Net assets with donor restrictions were not being adequately monitored. As a result, donor-restricted contributions were not recorded correctly in multiple instances. Criteria The Organization?s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting, and the preparation of the financial statements for external purposes, in accordance with generally accepted accounting principles. Cause Internal control procedures necessary to produce reliable financial records are either not in place or are not effective. Effect The Organization?s internal financial statements were materially misstated and required significant adjustments in order to conform with generally accepted accounting principles. Recommendation The Organization should implement processes and procedures to ensure the accuracy and reliability of financial records. Views of Responsible Officials Management has implemented processes to ensure accurate financial reporting which also allows for ease of identifying balances owed to the organization. Specifically, a new accounting structure has been put in place as of July 1, 2019 to allow for simplicity in how revenue and expenses are recorded, which ensures data is accurately tracked and identified. The grants billing process has been enhanced to allow for more accountability of spending, reconciliation, and ensure compliance. The process for donor-restricted contributions is in the process of being enhanced, along with an addition to staff, to create consistency between the organizations? ERP and Donor Database to ensure better tracking, reconciliation, and compliance with intent of the contribution.
The corrective action plan was documented in our response to the auditor's comment. See the Schedule of Findings, Questioned Costs, and Recommendations.
2018-006
Finding 2019-002 ? Revenue Transaction Cycle Control Processes Condition The following control procedures over the Organization?s revenue transaction cycle were either not in place or were not effective: ? A subsidiary ledger of the Organization?s patient receivables was not being retained and, therefore, no reconciliation of the general ledger could be performed accurately. ? A reconciliation of the Organization?s grants receivable ledgers to the general ledger was not prepared accurately. ? A reconciliation of receipts per the bank statement to receipts posted to the general ledger, and to the patient billings system, was not being performed. ? A daily log of cash receipts, documenting the items received and the date of the receipt, was not prepared. ? A reconciliation of contributions received, per the general ledger, to contributions received per the donor database, as well as donor acknowledgements was not being performed. Criteria Processes and procedures should be implemented to ensure the accurate recording and reporting of revenue transactions. Cause Staff have not developed adequate control procedures to ensure the accurate financial reporting of the Organization?s revenue transaction cycle. Effect The Organization?s current control processes, regarding the revenue transaction cycle, are not conducive to accurate financial reporting. Material errors were identified during the completion of the financial statement audit. The Organization may not be collecting payment on all services for which it performs due to deficiencies in the Organization?s grant and patient receivables management processes. Recommendation The above mentioned processes should be implemented. Reconciliations should be performed timely by an independent person. All balance sheet accounts should be supported by a subsidiary ledger and reconciled monthly. Donor contributions should be reconciled to the Development Department?s records to ensure accurate identification of applicable donor stipulations or restrictions on contributions. Views of Responsible Officials Management has implemented processes to ensure accurate financial reporting which also allows for ease of identifying balances owed to the organization. Specifically, a new accounting structure has been put in place as of July 1, 2019 to allow for simplicity in how revenue and expenses are recorded, which ensures data is accurately tracked and identified. The grants billing process has been enhanced to allow for more accountability of spending, reconciliation, and ensure compliance. The process for donor-restricted contributions is in the process of being enhanced, along with an addition to staff, to create consistency between the organizations? ERP and Donor Database to ensure better tracking, reconciliation, and compliance with intent of the contribution.
Show full finding ▾Hide full finding ▴Finding 2019-002 ? Revenue Transaction Cycle Control Processes Condition The following control procedures over the Organization?s revenue transaction cycle were either not in place or were not effective: ? A subsidiary ledger of the Organization?s patient receivables was not being retained and, therefore, no reconciliation of the general ledger could be performed accurately. ? A reconciliation of the Organization?s grants receivable ledgers to the general ledger was not prepared accurately. ? A reconciliation of receipts per the bank statement to receipts posted to the general ledger, and to the patient billings system, was not being performed. ? A daily log of cash receipts, documenting the items received and the date of the receipt, was not prepared. ? A reconciliation of contributions received, per the general ledger, to contributions received per the donor database, as well as donor acknowledgements was not being performed. Criteria Processes and procedures should be implemented to ensure the accurate recording and reporting of revenue transactions. Cause Staff have not developed adequate control procedures to ensure the accurate financial reporting of the Organization?s revenue transaction cycle. Effect The Organization?s current control processes, regarding the revenue transaction cycle, are not conducive to accurate financial reporting. Material errors were identified during the completion of the financial statement audit. The Organization may not be collecting payment on all services for which it performs due to deficiencies in the Organization?s grant and patient receivables management processes. Recommendation The above mentioned processes should be implemented. Reconciliations should be performed timely by an independent person. All balance sheet accounts should be supported by a subsidiary ledger and reconciled monthly. Donor contributions should be reconciled to the Development Department?s records to ensure accurate identification of applicable donor stipulations or restrictions on contributions. Views of Responsible Officials Management has implemented processes to ensure accurate financial reporting which also allows for ease of identifying balances owed to the organization. Specifically, a new accounting structure has been put in place as of July 1, 2019 to allow for simplicity in how revenue and expenses are recorded, which ensures data is accurately tracked and identified. The grants billing process has been enhanced to allow for more accountability of spending, reconciliation, and ensure compliance. The process for donor-restricted contributions is in the process of being enhanced, along with an addition to staff, to create consistency between the organizations? ERP and Donor Database to ensure better tracking, reconciliation, and compliance with intent of the contribution.
The corrective action plan was documented in our response to the auditor's comment. See the Schedule of Findings, Questioned Costs, and Recommendations.
2018-003
Finding 2019-004 ? Untimely Reconciliation of Bank and Investment Statements Condition Bank and investment statements were not reconciled to the general ledger in a timely manner after month-end. Criteria In order to facilitate the preparation of accurate internal financial statements, reconciliations of the bank and investment statements to the general ledger should be performed, periodically and timely, within thirty days of month end. Cause Turnover in the Finance Department during the fiscal year resulted in staff falling behind on reconciliation procedures. Effect Interim financial statements may not have been accurate as financial transaction errors may have gone undetected. Recommendation Management should prioritize completion of bank and investment reconciliations in a timely manner and ensure the Finance Department has resources available to meet its daily operating responsibilities. Views of Responsible Officials Management is working to implement monthly financial reconciliations and has added to staff to ensure that reconciliations are completed timely.
Show full finding ▾Hide full finding ▴Finding 2019-004 ? Untimely Reconciliation of Bank and Investment Statements Condition Bank and investment statements were not reconciled to the general ledger in a timely manner after month-end. Criteria In order to facilitate the preparation of accurate internal financial statements, reconciliations of the bank and investment statements to the general ledger should be performed, periodically and timely, within thirty days of month end. Cause Turnover in the Finance Department during the fiscal year resulted in staff falling behind on reconciliation procedures. Effect Interim financial statements may not have been accurate as financial transaction errors may have gone undetected. Recommendation Management should prioritize completion of bank and investment reconciliations in a timely manner and ensure the Finance Department has resources available to meet its daily operating responsibilities. Views of Responsible Officials Management is working to implement monthly financial reconciliations and has added to staff to ensure that reconciliations are completed timely.
The corrective action plan was documented in our response to the auditor's comment. See the Schedule of Findings, Questioned Costs, and Recommendations.
2018-005
Finding 2019-005 ? Schedule of Expenditures of Federal Awards All Federal Programs Grant Period ? July 1, 2018 through June 30, 2019 Condition The Schedule of Expenditures of Federal Awards (SEFA) prepared by Youth and Shelter Services, Inc. (YSS) for the audit required significant adjustments and additions by the auditor to include all programs required to be shown on the SEFA. Criteria The SEFA must include all expenditures of federal grants during the year under audit. Cause Management was not maintaining a current listing of all programs required to be reported on the SEFA. Effect Not including all federal expenditures on the SEFA could result in incorrect calculations for the selection of major programs to be tested for compliance. Recommendation Management should obtain a listing of all grants funded either directly or indirectly by the federal government. Upon signing a new grant agreement, management should review the grant document and determine whether it should be added to this listing or not. At the end of the year, when preparing the SEFA, management should ensure all programs maintained on the listing of federal programs are included in the SEFA. Views of Responsible Officials Management is now maintaining a list of all federal programs, and will evaluate that listing with every new grant received by YSS.
Show full finding ▾Hide full finding ▴Finding 2019-005 ? Schedule of Expenditures of Federal Awards All Federal Programs Grant Period ? July 1, 2018 through June 30, 2019 Condition The Schedule of Expenditures of Federal Awards (SEFA) prepared by Youth and Shelter Services, Inc. (YSS) for the audit required significant adjustments and additions by the auditor to include all programs required to be shown on the SEFA. Criteria The SEFA must include all expenditures of federal grants during the year under audit. Cause Management was not maintaining a current listing of all programs required to be reported on the SEFA. Effect Not including all federal expenditures on the SEFA could result in incorrect calculations for the selection of major programs to be tested for compliance. Recommendation Management should obtain a listing of all grants funded either directly or indirectly by the federal government. Upon signing a new grant agreement, management should review the grant document and determine whether it should be added to this listing or not. At the end of the year, when preparing the SEFA, management should ensure all programs maintained on the listing of federal programs are included in the SEFA. Views of Responsible Officials Management is now maintaining a list of all federal programs, and will evaluate that listing with every new grant received by YSS.
The corrective action plan was documented in our response to the auditor's comment. See the Schedule of Findings, Questioned Costs, and Recommendations.
2018-009
FAC accepted this audit on March 26, 2019 — management decision was due September 26, 2019.
GSA_MIGRATION
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2017-001
GSA_MIGRATION
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GSA_MIGRATION
2017-100
GSA_MIGRATION
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2017-002
FAC accepted this audit on May 31, 2018 — management decision was due December 1, 2018.
GSA_MIGRATION
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2016-001
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Show full finding ▾Hide full finding ▴FAC accepted this audit on November 20, 2016 — management decision was due May 20, 2017.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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