EIN: 431014201
UEI: Q8R7GU89CSY3
Data as of August 21, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 23, 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 September 23, 2026 (32 days from today).
What is a management decision? →During our audit, we noted instances where the organization did not have procedures in place to maintain adequate documentation of charged to federal awards: • During our testing of payroll expenses, we selected a sample of 25 payroll transactions across four different pay periods consisting of seven different employees. Five of the seven employees selected were hourly employees. For these five hourly individuals, documentation supporting the authorized rate of pay for each of the four pay periods selected could not be provided. The Board of Directors minutes from July 2024 indicated that the Board approved an across-the-board pay increase of 5%, however, the pay rates of the individuals tested were more than 5% higher than the ending pay rates from fiscal year 2024. In all cases, the actual hourly rate of pay was 11.1% higher than the expected rate of pay after the 5% increase. • During our testing of cash disbursements, we selected a sample of 40 expense transactions, which included monthly expense reimbursement reports from six different subrecipient contractors. We requested copies of the fiscal year 2025 contracts with these service providers to ensure that per unit reimbursement rate used to determine the contractor’s payment for the month was correct. However, the organization could not provide copies of the signed fiscal year 2025 contracts. We were able to view the procurement files and the organization’s on-site monitoring files for each service provider. Cause: The organization has had significant turnover in the Chief Executive Officer and Chief Financial Officer positions in the past 24 months, in addition to undergoing multiple office relocations during that time. The organization could not determine how the prior Chief Financial Officer calculated the fiscal year 2025 pay rates which were entered into QuickBooks and could not locate the signed copies of the fiscal year 2025 contracts with service providers. Effect: The maintenance of proper documentation of authorized employee pay rates and contractor reimbursement rates helps to ensure that expenses charged to federal awards are allowable. Recommendation: We recommend that the Agency implement procedures to ensure that authorized pay rates are properly documented and maintained through forms maintained in personnel files or other means. We also recommend that copies of signed contracts with contractors be documented and maintained in a location where they are accessible to all authorized staff.
Show full finding ▾Hide full finding ▴2025-001: Internal Controls over Compliance for Allowable Costs Federal Grantor: U.S. Department of Health and Human Services Pass-Through Grantor: Missouri Department of Health and Senior Services Federal Assistance Listing Number: 93.044/93.045/93.053 Program Title: Aging Cluster Pass-through Entity Identifying Number: ERS10525004 Award Year: 2025 Questioned Costs: None Criteria: 2 CFR 200.303 states, “The recipient and subrecipient must: (a) Establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” 2 CFR 200.430(g)(1) states that, “Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated….” Condition: During our audit, we noted instances where the organization did not have procedures in place to maintain adequate documentation of charged to federal awards: • During our testing of payroll expenses, we selected a sample of 25 payroll transactions across four different pay periods consisting of seven different employees. Five of the seven employees selected were hourly employees. For these five hourly individuals, documentation supporting the authorized rate of pay for each of the four pay periods selected could not be provided. The Board of Directors minutes from July 2024 indicated that the Board approved an across-the-board pay increase of 5%, however, the pay rates of the individuals tested were more than 5% higher than the ending pay rates from fiscal year 2024. In all cases, the actual hourly rate of pay was 11.1% higher than the expected rate of pay after the 5% increase. • During our testing of cash disbursements, we selected a sample of 40 expense transactions, which included monthly expense reimbursement reports from six different subrecipient contractors. We requested copies of the fiscal year 2025 contracts with these service providers to ensure that per unit reimbursement rate used to determine the contractor’s payment for the month was correct. However, the organization could not provide copies of the signed fiscal year 2025 contracts. We were able to view the procurement files and the organization’s on-site monitoring files for each service provider. Cause: The organization has had significant turnover in the Chief Executive Officer and Chief Financial Officer positions in the past 24 months, in addition to undergoing multiple office relocations during that time. The organization could not determine how the prior Chief Financial Officer calculated the fiscal year 2025 pay rates which were entered into QuickBooks and could not locate the signed copies of the fiscal year 2025 contracts with service providers. Effect: The maintenance of proper documentation of authorized employee pay rates and contractor reimbursement rates helps to ensure that expenses charged to federal awards are allowable. Recommendation: We recommend that the Agency implement procedures to ensure that authorized pay rates are properly documented and maintained through forms maintained in personnel files or other means. We also recommend that copies of signed contracts with contractors be documented and maintained in a location where they are accessible to all authorized staff.
Finding Reference Number: 2025-001 Federal Agency: U.S. Department of Health and Human Services Program Name: Aging Cluster Assistance Listing Number: 93.044/93.045/93.053 Responsible Official: Penny Crawford, Chief Executive Officer; Kelsey Swinderman, Financial Manager Views of Responsible Individuals: The Agency acknowledges the documentation deficiencies identified related to payroll and contract management. These issues were largely due to leadership transitions and changes in operational processes. The Agency has evaluated these gaps and is actively implementing corrective actions to strengthen internal controls and ensure compliance with Uniform Guidance requirements. Corrective Action Plan: Corrective actions currently in progress include: • Standardizing documentation requirements for all employee pay rates, including maintaining supporting documentation within personnel files • Implementing internal review procedures to ensure payroll changes align with Board-approved actions • Centralizing contract management and maintaining all executed service provider agreements in a secure, accessible location • Establishing documentation retention procedures to ensure all supporting records for federal award expenditures are complete and readily available for audit review The Agency is committed to fully resolving these issues and strengthening internal processes to ensure ongoing compliance and accountability. The Agency is implementing enhanced internal control procedures to ensure that all costs charged to federal awards are properly authorized, documented, and maintained in accordance with federal requirements. These improvements include the development of standardized processes for payroll documentation, contract management, and documentation retention. Internal review procedures are also being strengthened to ensure alignment between Board approvals and financial records. Anticipated Completion Date: June 30, 2026
FAC accepted this audit on March 31, 2025 — management decision was due October 1, 2025.
During our audit, we noted instances of deviations from documented internal control policies and management override of internal controls: • The former Executive Director implemented a 36-hour work week policy by closing the administrative offices at noon every Friday effective January 1, 2024. However, the Agency’s Personnel Policies and Administrative Procedures, Guidelines and Benefits manual was not updated to reflect this change from a 40-hour to a 36-hour work week. Employees recorded 4 hours of “Other Paid Leave” on their timesheets every Friday for the time the offices were closed. We also noted that employees recorded “Other Paid Leave” for the Friday after Thanksgiving during the fiscal year. This was not one of the officially recognized paid holidays in the adopted policy manual. • The Agency did not follow the prescribed procedures for reviewing and paying credit card charges during the year. The Agency’s Accounting Manual calls for all receipts for credit card charges to be submitted to the CFO to verify the charges on the monthly statement prior to paying the credit card bill. However, during the fiscal year there were instances noted where the former Executive Director made credit card payments online, circumventing the Agency’s accounts payable process. The Accounting Manual also prohibits unauthorized charges to the company credit card, such as personal expenditures. We noted $3,171 of personal charges made by the former Executive Director to the company credit card in the general ledger. These charges were recorded as prepaid expenses in the accounting system and therefore were not charged to federal awards. The former CFO would reduce the Executive Director’s paycheck to reimburse the company for any personal charges noted on the credit card. Cause: The November 2023 Board minutes mention the Executive Director’s plan for going to a 36-hour work week effective January 1, 2024, however, the Board did not approve the policy at that time and the Agency’s personnel policy manual was not updated and approved by the Board. The June 2024 Board minutes reflect an approved motion by the Board to approve the 36-hour work week and the policy manual was updated to reflect the 36-hour work week in October 2024. The revised policy manual also reflects 14 paid holidays, which was increased from the 11 paid holidays noted in the prior version of the manual. During the fiscal year, there was management override of the prescribed internal controls regarding charges to the company credit card. Effect: Internal controls over compliance that can prevent and detect noncompliance with federal statutes, regulations and the terms and conditions of the Agency’s federal awards are necessary to ensure that only allowable and authorized expenses are charged to federal awards. Recommendation: We recommend that the Agency implement procedures to ensure that the prescribed internal controls, policies and procedures officially adopted by the Board of Directors are implemented and consistently followed.
Show full finding ▾Hide full finding ▴2024-001: Internal Controls over Compliance for Allowable Costs Federal Grantor: U.S. Department of Health and Human Services Pass-Through Grantor: Missouri Department of Health and Senior Services Federal Assistance Listing Number: 93.044/93.045/93.053 Program Title: Aging Cluster Pass-through Entity Identifying Number: ERS1052004 Award Year: 2024 Questioned Costs: None Criteria: 2 CFR 200.303 states, “The recipient and subrecipient must: (a) Establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Condition: During our audit, we noted instances of deviations from documented internal control policies and management override of internal controls: • The former Executive Director implemented a 36-hour work week policy by closing the administrative offices at noon every Friday effective January 1, 2024. However, the Agency’s Personnel Policies and Administrative Procedures, Guidelines and Benefits manual was not updated to reflect this change from a 40-hour to a 36-hour work week. Employees recorded 4 hours of “Other Paid Leave” on their timesheets every Friday for the time the offices were closed. We also noted that employees recorded “Other Paid Leave” for the Friday after Thanksgiving during the fiscal year. This was not one of the officially recognized paid holidays in the adopted policy manual. • The Agency did not follow the prescribed procedures for reviewing and paying credit card charges during the year. The Agency’s Accounting Manual calls for all receipts for credit card charges to be submitted to the CFO to verify the charges on the monthly statement prior to paying the credit card bill. However, during the fiscal year there were instances noted where the former Executive Director made credit card payments online, circumventing the Agency’s accounts payable process. The Accounting Manual also prohibits unauthorized charges to the company credit card, such as personal expenditures. We noted $3,171 of personal charges made by the former Executive Director to the company credit card in the general ledger. These charges were recorded as prepaid expenses in the accounting system and therefore were not charged to federal awards. The former CFO would reduce the Executive Director’s paycheck to reimburse the company for any personal charges noted on the credit card. Cause: The November 2023 Board minutes mention the Executive Director’s plan for going to a 36-hour work week effective January 1, 2024, however, the Board did not approve the policy at that time and the Agency’s personnel policy manual was not updated and approved by the Board. The June 2024 Board minutes reflect an approved motion by the Board to approve the 36-hour work week and the policy manual was updated to reflect the 36-hour work week in October 2024. The revised policy manual also reflects 14 paid holidays, which was increased from the 11 paid holidays noted in the prior version of the manual. During the fiscal year, there was management override of the prescribed internal controls regarding charges to the company credit card. Effect: Internal controls over compliance that can prevent and detect noncompliance with federal statutes, regulations and the terms and conditions of the Agency’s federal awards are necessary to ensure that only allowable and authorized expenses are charged to federal awards. Recommendation: We recommend that the Agency implement procedures to ensure that the prescribed internal controls, policies and procedures officially adopted by the Board of Directors are implemented and consistently followed.
Agency Response: Currently, Young at Heart follows policies and procedures for holidays, week hours, etc. CEO and CFO are aware we must follow our policies. We have changed the work week policy and the holiday listings in our policies. Creating new policies was part of the corrective action plan with the DHSS. The policies were created and approved by Young at Heart Board in July 2024. Employees work a 36 hour week and receive 13 paid holidays. The credit card procedure now is being followed as it should. This was also on the Correctve Action Plan with DHSS. Both the previous CEO (Michael Stopka) and CFO (Shari Harris) are no longer employed with the agency. When I started as CFO, the current interim CEO Freda Miller and I called the board chair regarding the personal charges by Michael Stopka on the corporate credit card. The board chair was unaware of this and would address the issue and make sure he not only didn’t use the card for personal charges but would not pay it online and bypass the internal control function of accounts payable and cash disbursements. The current procedure of all purchases must be approved by the CEO and CFO prior to purchase. Once the item is purchased, the receipt and the requisition is sent to the fiscal assistant who matches the receipts to the credit card bill. Once all items are accounted for, the fiscal assistant will cut a check. The check will then be signed by CEO and a board member. The credit card bill is no longer being paid on-line. I believe the internal control problems have been addressed both on the corrective action plan with MO DHSS and by current management. These items were corrected in July 2024 after M. Stopka & S. Harris had left the agency.
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