Young Women's Christian Association of St. Joseph, MissouriNon-Profit

2024-002 Program: Crime Victim Assistance Federal Agency: Department of Justice AL #: 16.575 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: Missouri Department of Social Services Type of Compliance Finding: E - Eligibility Internal Control Impact: Material Weakness Finding: When a participant arrives at the Shelter, the admission checklist, procedures, and forms must be completed by program staff. During our audit of the Organization’s fiscal year ended December 31, 2024 federal award program, we noted the Organization did not have necessary supporting documentation, such as admission checklists for eligibility, to evaluate twenty-one out of twenty- five participants in their files. Corrective Action Plan: All supporting documentation for client eligibility will be maintained for the period required by the grant. Person(s) Responsible for Implementation: Danielle Brown, CEO, dbrown@ywcasj.org, 816-232-4481

2024-003 Program: Crime Victim Assistance Federal Agency: Department of Justice AL #: 16.575 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: Missouri Department of Social Services Type of Compliance Finding: I - Procurement, Suspension, & Debarment Internal Control Impact: Material Weakness Finding: During our audit of the Organization’s fiscal year ended December 31, 2024 federal award program, we noted the Organization did not follow their documented procurement procedures for approving one contractor. Corrective Action Plan: All procurement procedures will be followed as documented in YWCA St. Joseph financial policies. Person(s) Responsible for Implementation: Danielle Brown, CEO, dbrown@ywcasj.org, 816-232-4481

Significant Deficiency Finding: Segregation of Duties -Internal controls should be in place that provide an adequate segregation of duties that separates initiating, processing, recording and reconciling a transaction. Questioned Costs None Status Sustained Corrective Action Additional positions/roles will be created or redesigned and implemented so that the duties required involve more participants and would include the following suggested plan: 1. Cash Receipts a. All mail will be opened by the Executive/Administrative Assistant and cash receipts recorded by the Administrative Specialist. b. All other accounts receivables (AR) will be collected by Administrative Specialist and recorded by Executive/Administrative Assistant. c. The cash receipts journal will be totaled by the Chief Financial Officer (CFO), Administrative Specialist will prepare the corresponding deposit and CFO will deposit cash receipts. d. Executive/Administrative Assistant will reconcile the depository bank receipt with the cash receipts journal to verify that all funds are deposited. e. CFO will review AR ledger. f. CEO will authorize write-offs of delinquent accounts. g. CFO will independently investigate AR discrepancies. h. CEO will maintain or authorize AR adjustments. i. Administrative Specialist will edit the AR master file. j. Executive/Administrative Assistant will process customer service calls and CEO will handle complaints. k. CFO will investigate discrepancies or issues related to revenue and CEO will authorize adjustments as needed. I. CFO will reconcile bank accounts. 2. Accounts Payable a. Vendor payments will be initiated by Executive/Ad m in istrative Assista nt. b. Checks will be prepared by Administrative Specialist. c. CEO will review and authorize/sign checks or approve electronic payments. d. Checks $1000 or greater require 2 signatures. The second signer (an Executive Committee member of the Board of Directors) will also review and authorize/sign checks or approve electronic payments. e. Executive/Administrative Assistant will mail checks. f. Administrative Specialist will edit the vendor master file. g. CFO will investigate discrepancies or issues involving expenditures. h. Executive/Administrative Assistant will open the mail or copy checks received. i. CFO will reconcile bank accounts. 3. Payroll a. Human Resources (HR) Director will prepare payroll checks. b. CEO will sign payroll checks. c. CFO will review and authorize electronic payroll disbursements. d. CFO will resolve employee payroll inquiries. e. HR Director will edit the payroll master file. f. Executive/Administrative Assistant will open the mail or copy checks received. 4. Other a. CFO is required to take 1 full week of vacation a year and will not enter the building for at least 10 days. b. A budget is prepared by CEO/CFO and approved annually by the Operations Committee and the Board of Directors. c. Budget revisions are prepared by CEO/CFO and approved by the Operations Committee and the Board of Directors d. An Income Statement Report is prepared monthly by CFO and reviewed by the CEO, Operations Committee and Board of Directors. e. A Balance Sheet report is prepared quarterly by CFO and reviewed by CEO, Operations Committee and the Board of Directors f. A Budget Variance report is prepared monthly and per department quarterly by CFO, reviewed by CEO, Operations Committee and Board of Directors.

2022-003

Material Weakness Finding: Financial Statement accounts should be reconciled on a monthly basis to ensure proper financial reports. Questioned Costs None Status Sustained Corrective Action At the end of each fiscal quarter, all Balance Sheet accounts, and significant revenue and expense accounts, are reconciled to the appropriate supporting documentation by the Chief Financial Officer or designated individual. In addition, the CFO, or designated individual, prepares the necessary adjusting journal entries for the reconciliations. The reconciliations and adjusting journal entries are then submitted to the CEO for review and approval. In cases when the CFO designates other finance department staff to reconcile significant revenue and expense accounts, the CFO will review and approve the reconciliation and adjusting entries. Once approved and signed off/approved the journal entries are entered into the accounting system. At year-end, the same process is completed as part of the fiscal year closing process to ensure all accounts are accurate before the arrival of the auditors. Once, the year-end adjusting entries have been approved and posted to the accounting system, the year-end financial statements are prepared by the CFO. These financial statements, along with the footnote disclosures, are then reviewed and approved by the Operations Committee of the Board of Directors to ensure they are prepared in accordance with generally accepted accounting principles. The related supporting documentation is kept on file for future auditing purposes.

2022-004

Material Weakness Finding: The SEFA should include all expenditures of federal awards. Questioned Costs None Status Sustained Corrective Action • Written approval by the Board of Directors is required to apply for Federal grants. • Once a Federal grant award application has been made, the Board of Directors must accept the grant and appropriate funds before the grant funds are expended. Copies of the approved requests will be submitted to the Finance department. Once the Federal grant award has been approved by the Granting agency and accepted by the Board of Directors. For new grants, the Finance Department will meet with the CEO and Program Director to set up account codes in the financial system in order to track all revenues and expenditures for the specific grant, and the administering department will be notified of the new account numbers. • The CEO, CFO, and program director will establish the grant budget according to approved documentation. • The Finance Department monitors the expenditures and revenues monthly with review by the Program Director to ensure all items are recorded properly and that they meet the grantor's guidelines. • The department's annual inventories of federal grants are reviewed to ensure that all approved grants are included in the accounting system. If all approved grants are not included, staff from the finance department will contact the department for a corrected inventory. In addition, the Finance department reviews all Board minutes and agenda notes and identifies new federal grants as they become accepted. • Year End reporting is prepared by running reports out of the accounting software system and is reviewed in detail for accuracy with the CEO, CFO, and Program Director. • CFDA numbers for all Federal grants will be gathered and kept with the grant information. At the end of the fiscal year, a report will be generated, itemizing all of the approved Federal grants that went before the Board for that fiscal year. All approved awards will be reconciled to the Schedule of Expenditures of Federal Awards. • All grants will be maintained in accordance with any Federal, State, and Local guidelines/laws applicable to the agreement. • All documentation will be maintained by the finance department for auditing purposes. • The Finance department is responsible for preparing the year-end Schedule of Expenditures of Federal Awards and providing oversight on the above related policies and procedures. • The YWCA will continue to provide training in the field of grant management to appropriate staff which will address specific policies and procedures for administering the YWCA's use and management of government grant resources and expenditures. The training stresses the importance of including all Federal grants on their annual inventories or SEFA. Year-End Report/Audit: 1. Prepare a closing schedule. The first step in the closing process is to plan and develop a schedule of events. There are various due dates that must be met such as report deadlines, data processing deadlines at the organization. 2. A calendar combining all of the important events should be established and followed throughout the closing process. 3. Review all asset accounts. Various asset accounts must be reviewed at year-end. A reconciliation of all cash accounts must be prepared and any adjusting entries must be recorded. The inventory account must be adjusted to agree with the physical count. Prepaid expenditures must be reviewed and analyzed to ensure that no adjustments are needed. 4. Analyze and close out prior year receivable and payable accounts. At year-end, the agency must close out any amounts remaining in the prior year receivable or payable accounts. During the year, differences will occur between amounts actually received or paid versus what had been accrued. These adjustments should be made throughout the year as they occur, but a final analysis must be made if a balance remains on these accounts. 5. Accrue accounts receivable. Various sources of revenues are due to the agency at year-end. These amounts must be recorded as accounts receivable. This will record the revenue in the proper fiscal year. There are specific revenue recognition policies referring to such items as revenue limit, interest, deficits, etc. that provide guidance on how to calculate these receivables. 6. Accrue accounts payable. Any amounts due to others at year- end for receipt of goods or services must be recorded as accounts payable. This will record the expenditure in the proper fiscal year. There are common types of payables such as payroll, employee benefits, utilities, contracts, and so forth. 7. Adjust grants and entitlements: Specific recognition policies must be followed in accounting for grants and entitlements. Each project must be reviewed separately, and appropriate entries must be completed. 8. Ensure accurate accounting for leases, must be recorded before or during the year-end closing process. 9. Ensure that all inter-program and inter-fund transactions are reconciled. Any transfers of expenditures between programs or funds must be reconciled. 10. Review unique closing procedures for other funds and account groups. Unique items must be considered at year-end regarding funds other than the general fund. 11. Properly identify the components of the ending fund balance. Year-end entries are necessary to classify the components of the ending fund balance correctly. Amounts may be reserved, legally restricted, designated, or undesignated. 12. Are the books ready for the annual audit? The goal of year-end closing is to ensure that the Organization financial statements are accurate and ready for audit.

2022-005

Significant Deficiency Finding: Segregation of Duties -Internal controls should be in place that provide an adequate segregation of duties that separates initiating, processing, recording and reconciling a transaction. Questioned Costs None Status Sustained Corrective Action Additional positions/roles will be created or redesigned and implemented so that the duties required involve more participants and would include the following suggested plan: 1. Cash Receipts a. All mail will be opened by the Executive/Administrative Assistant and cash receipts recorded by the Administrative Specialist. b. All other accounts receivables (AR) will be collected by Administrative Specialist and recorded by Executive/Administrative Assistant. c. The cash receipts journal will be totaled by the Chief Financial Officer (CFO), Administrative Specialist will prepare the corresponding deposit and CFO will deposit cash receipts. d. Executive/Administrative Assistant will reconcile the depository bank receipt with the cash receipts journal to verify that all funds are deposited. e. CFO will review AR ledger. f. CEO will authorize write-offs of delinquent accounts. g. CFO will independently investigate AR discrepancies. h. CEO will maintain or authorize AR adjustments. i. Administrative Specialist will edit the AR master file. j. Executive/Administrative Assistant will process customer service calls and CEO will handle complaints. k. CFO will investigate discrepancies or issues related to revenue and CEO will authorize adjustments as needed. I. CFO will reconcile bank accounts. 2. Accounts Payable a. Vendor payments will be initiated by Executive/Ad m in istrative Assista nt. b. Checks will be prepared by Administrative Specialist. c. CEO will review and authorize/sign checks or approve electronic payments. d. Checks $1000 or greater require 2 signatures. The second signer (an Executive Committee member of the Board of Directors) will also review and authorize/sign checks or approve electronic payments. e. Executive/Administrative Assistant will mail checks. f. Administrative Specialist will edit the vendor master file. g. CFO will investigate discrepancies or issues involving expenditures. h. Executive/Administrative Assistant will open the mail or copy checks received. i. CFO will reconcile bank accounts. 3. Payroll a. Human Resources (HR) Director will prepare payroll checks. b. CEO will sign payroll checks. c. CFO will review and authorize electronic payroll disbursements. d. CFO will resolve employee payroll inquiries. e. HR Director will edit the payroll master file. f. Executive/Administrative Assistant will open the mail or copy checks received. 4. Other a. CFO is required to take 1 full week of vacation a year and will not enter the building for at least 10 days. b. A budget is prepared by CEO/CFO and approved annually by the Operations Committee and the Board of Directors. c. Budget revisions are prepared by CEO/CFO and approved by the Operations Committee and the Board of Directors d. An Income Statement Report is prepared monthly by CFO and reviewed by the CEO, Operations Committee and Board of Directors. e. A Balance Sheet report is prepared quarterly by CFO and reviewed by CEO, Operations Committee and the Board of Directors f. A Budget Variance report is prepared monthly and per department quarterly by CFO, reviewed by CEO, Operations Committee and Board of Directors.

Material Weakness Finding: Financial Statement accounts should be reconciled on a monthly basis to ensure proper financial reports. Questioned Costs None Status Sustained Corrective Action At the end of each fiscal quarter, all Balance Sheet accounts, and significant revenue and expense accounts, are reconciled to the appropriate supporting documentation by the Chief Financial Officer or designated individual. In addition, the CFO, or designated individual, prepares the necessary adjusting journal entries for the reconciliations. The reconciliations and adjusting journal entries are then submitted to the CEO for review and approval. In cases when the CFO designates other finance department staff to reconcile significant revenue and expense accounts, the CFO will review and approve the reconciliation and adjusting entries. Once approved and signed off/approved the journal entries are entered into the accounting system. At year-end, the same process is completed as part of the fiscal year closing process to ensure all accounts are accurate before the arrival of the auditors. Once, the year-end adjusting entries have been approved and posted to the accounting system, the year-end financial statements are prepared by the CFO. These financial statements, along with the footnote disclosures, are then reviewed and approved by the Operations Committee of the Board of Directors to ensure they are prepared in accordance with generally accepted accounting principles. The related supporting documentation is kept on file for future auditing purposes.

Material Weakness Finding: The SEFA should include all expenditures of federal awards. Questioned Costs None Status Sustained Corrective Action • Written approval by the Board of Directors is required to apply for Federal grants. • Once a Federal grant award application has been made, the Board of Directors must accept the grant and appropriate funds before the grant funds are expended. Copies of the approved requests will be submitted to the Finance department. Once the Federal grant award has been approved by the Granting agency and accepted by the Board of Directors. For new grants, the Finance Department will meet with the CEO and Program Director to set up account codes in the financial system in order to track all revenues and expenditures for the specific grant, and the administering department will be notified of the new account numbers. • The CEO, CFO, and program director will establish the grant budget according to approved documentation. • The Finance Department monitors the expenditures and revenues monthly with review by the Program Director to ensure all items are recorded properly and that they meet the grantor's guidelines. • The department's annual inventories of federal grants are reviewed to ensure that all approved grants are included in the accounting system. If all approved grants are not included, staff from the finance department will contact the department for a corrected inventory. In addition, the Finance department reviews all Board minutes and agenda notes and identifies new federal grants as they become accepted. • Year End reporting is prepared by running reports out of the accounting software system and is reviewed in detail for accuracy with the CEO, CFO, and Program Director. • CFDA numbers for all Federal grants will be gathered and kept with the grant information. At the end of the fiscal year, a report will be generated, itemizing all of the approved Federal grants that went before the Board for that fiscal year. All approved awards will be reconciled to the Schedule of Expenditures of Federal Awards. • All grants will be maintained in accordance with any Federal, State, and Local guidelines/laws applicable to the agreement. • All documentation will be maintained by the finance department for auditing purposes. • The Finance department is responsible for preparing the year-end Schedule of Expenditures of Federal Awards and providing oversight on the above related policies and procedures. • The YWCA will continue to provide training in the field of grant management to appropriate staff which will address specific policies and procedures for administering the YWCA's use and management of government grant resources and expenditures. The training stresses the importance of including all Federal grants on their annual inventories or SEFA. Year-End Report/Audit: 1. Prepare a closing schedule. The first step in the closing process is to plan and develop a schedule of events. There are various due dates that must be met such as report deadlines, data processing deadlines at the organization. 2. A calendar combining all of the important events should be established and followed throughout the closing process. 3. Review all asset accounts. Various asset accounts must be reviewed at year-end. A reconciliation of all cash accounts must be prepared and any adjusting entries must be recorded. The inventory account must be adjusted to agree with the physical count. Prepaid expenditures must be reviewed and analyzed to ensure that no adjustments are needed. 4. Analyze and close out prior year receivable and payable accounts. At year-end, the agency must close out any amounts remaining in the prior year receivable or payable accounts. During the year, differences will occur between amounts actually received or paid versus what had been accrued. These adjustments should be made throughout the year as they occur, but a final analysis must be made if a balance remains on these accounts. 5. Accrue accounts receivable. Various sources of revenues are due to the agency at year-end. These amounts must be recorded as accounts receivable. This will record the revenue in the proper fiscal year. There are specific revenue recognition policies referring to such items as revenue limit, interest, deficits, etc. that provide guidance on how to calculate these receivables. 6. Accrue accounts payable. Any amounts due to others at year- end for receipt of goods or services must be recorded as accounts payable. This will record the expenditure in the proper fiscal year. There are common types of payables such as payroll, employee benefits, utilities, contracts, and so forth. 7. Adjust grants and entitlements: Specific recognition policies must be followed in accounting for grants and entitlements. Each project must be reviewed separately, and appropriate entries must be completed. 8. Ensure accurate accounting for leases, must be recorded before or during the year-end closing process. 9. Ensure that all inter-program and inter-fund transactions are reconciled. Any transfers of expenditures between programs or funds must be reconciled. 10. Review unique closing procedures for other funds and account groups. Unique items must be considered at year-end regarding funds other than the general fund. 11. Properly identify the components of the ending fund balance. Year-end entries are necessary to classify the components of the ending fund balance correctly. Amounts may be reserved, legally restricted, designated, or undesignated. 12. Are the books ready for the annual audit? The goal of year-end closing is to ensure that the Organization financial statements are accurate and ready for audit.

Significant Deficiency Segregation of Duties -Internal controls should be in place that provide Finding: an adequate segregation of duties that separates initiating, processing, recording and reconciling a transaction. Questioned None Costs Status Sustained Corrective Additional positions/roles will be created or redesigned and implemented Action so that the duties required involve more participants and would include the following suggested plan: 1. Cash Receipts a. All mail will be opened by the Executive/Administrative Assistant and cash receipts recorded by the Administrative Specialist. b. All other accounts receivables (AR) will be collected by Administrative Specialist and recorded by Executive/Administrative Assistant. c. The cash receipts journal will be totaled by the Chief Financial Officer (CFO), Administrative Specialist will prepare the corresponding deposit and CFO will deposit cash receipts. d. Executive/Administrative Assistant will reconcile the depository bank receipt with the cash receipts journal to verify that all funds are deposited. e. CFO will review AR ledger. f. CEO will authorize write-offs of delinquent accounts. g. CFO will independently investigate AR discrepancies. h. CEO will maintain or authorize AR adjustments. i. Administrative Specialist will edit the AR master file. j. Executive/Administrative Assistant will process customer service calls and CEO will handle complaints. k. CFO will investigate discrepancies or issues related to revenue and CEO will authorize adjustments as needed. I. CFO will reconcile bank accounts. 2. Accounts Payable a. Vendor payments will be initiated by Executive/Administrative Assistant. 1 b. Checks will be prepared by Administrative Assistant. c. CEO will review and authorize/sign checks or approve electronic payments. d. Checks $1000 or greater require 2 signatures. The second signer (an Executive Committee member of tBoard of Directors) will also review and authorize/sign checks or approve electronic payments. e. Executive/Administrative Assistant will mail checks. f. Administrative Specialist will edit the vendor master file. g. CFO will investigate discrepancies or issues involving expenditures. h. Executive/Administrative Assistant will open the mail or copy checks received. i. CFO will reconcile bank accounts. 3. Payroll a. Human Resources (HR) Director will prepare payroll checks. b. CEO will sign payroll checks. c. CFO will review and authorize electronic payroll disbursements. d. CFO will resolve employee payroll inquiries. e. HR Director will edit the payroll master file. f. Executive/Administrative Assistant will open the mail or copy checks received. 4. Other a. CFO is required to take 1 full week of vacation a year and will not enter the building for at least 10 days. b. A budget is prepared by CEO/CFO and approved annually by the Operations Committee and the Board of Directors. c. Budget revisions are prepared by CEO/CFO and approved by the Operations Committee and the Board of Directors d. An Income Statement Report is prepared monthly by CFO and reviewed by the CEO, Operations Committee and Board of Directors. e. A Balance Sheet report is prepared quarterly by CFO and reviewed by CEO, Operations Committee and the Board of Directors f. A Budget Variance report is prepared monthly and per department quarterly by CFO, reviewed by CEO, Operations Committee and Board of Directors.

2021-002

Material Weakness Finding: Financial Statement accounts should be reconciled on a monthly basis to ensure proper financial reports. Questioned None Costs Status New Corrective Financial statements will be prepared monthly by CFO and reviewed by Action CEO, Operations Committee and Board of Directors.

Material Weakness Finding: The SEFA should include all expenditures of federal awards. Questioned None Costs Status New Corrective All federal awards will be balanced monthly by CFO and reviewed by CEO Action to ensure preparation of SEFA is accurate.

SEE CORRECTIVE ACTION PLAN FOR CHART/TABLE

"SEE CORRECTIVE ACTION PLAN FOR CHART/TABLE"

YWCA St. Joseph, MO Corrective Action Plan for Finding 2019-001 For Years Prior to Fiscal Year 2019 OBM Circular A-133 Audit For the Fiscal Year Ended December 31, 2019 Corrective Action Plan Fiscal Year 19 Finding Number 001 Significant Deficiency Segregation of Duties - Internal controls should be in place that provide an adequate segregation of duties that separates initiating, processing, recording and reconciling a transaction. Finding: Questioned Costs None Status Sustained Corrective Action It would require hiring 3 part-time bookkeepers to adequately separate duties. Costs would be in excess of $48,750.00 per year and this would increase after 2 years to include retirement benefits. Management believes that due to the size of the organization, the cost of correcting the significant deficiency, item 2019-001, would exceed the benefits to be derived in doing so. Management concurs with the recommendation and the Board and the Chief Executive Officer will continue their active involvement in the operation of the Organization and suggest the following plan: 1. Cash Receipts a. All mail is opened by the Chief Executive Officer and cash receipts are recorded by the Office Manager b. Cash Receipts journal is totaled by the Finance Director and the corresponding deposit is made c. The Chief Executive Officer will verify the depository bank receipt with the receipts journal to verify that all funds are deposited 2. Accounts Payable d. All vendor invoices are approved by the Chief Executive Officer e. Vendor invoices are processed and checks prepared by the Human Resources Director (Bachelors of Science, Accounting) and/or the Office Manager (reviewed by the Human Resources Director) f. All vendor checks are verified by the Chief Executive Officer to ascertain that the invoices paid match up to the invoices attached to the check and approved for payment above g. Any check that is $1000 or over requires 2 signatures. The second signer (an Executive Committee member of the Board of Directors) also verifies that the invoices have been approved and match up with the invoices being paid on the check h. Bank reconciliation is reviewed and signed by the Chief Executive Officer. 3. Payroll a. New employee paperwork is instituted by the Human Resources Director b. A welcome letter is written and signed by the department manager and the Chief Executive Officer including information regarding starting date, department, duties and hourly/salary information c. 1-9 information is gathered by the department manager and verified online by the Human Resources Director d. Hourly/Salary information is submitted by the Human Resources Director and verified for correctness by the Chief Executive Officer. e. All employees clock in and out using the time management feature provided by PayCor f. Daily punches are approved by department managers and double checked by the Human Resources Director g. Time information is downloaded to Paycor and submitted for payment by the Human Resources Director h. The Chief Executive Officer and the Human Resources Director verifies all checks to ensure that only hours worked are paid and that hourly/salary amounts are correct. 4. Other a. The Finance Director is required to take 1 full week of vacation a year and will not enter the building for at least 10 days. b. A budget is prepared and approved annually by the Operations Committee and the Board of Directors c. Budget revisions are approved by the Operations Committee and the Board of Directors d. An Income Statement Report is prepared monthly and reviewed by the Operations Committee and the Board of Directors e. A Balance Sheet report is prepared quarterly and reviewed by the Operations Committee and the Board of Directors f. A Budget Variance report is prepared monthly and reviewed by the Operations Committee and the Board of Directors

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