Youth Futures

Finding 2021-003 (Significant Deficiency): Segregation of Duties Over Disbursements Criteria: Appropriately designed internal controls over disbursements segregate authorization and recording duties and provide an document trail that sufficiently supports that appropriate authorization has occurred. Condition: During the year ended December 31, 2021, the Organization did not consistently separate authorization and recording duties and did not consistently maintain a document trail to support appropriate authorization of expenditures. Effect: Insufficient design and implementation of internal control over disbursements increases the risk of misstated financial statements and noncompliance with grants. Recommendation: The Organization should improve its policies and procedures over disbursements to segregate authorization and recording duties and consistently provide a document trail to support authorization of disbursements as appropriate for the Organization and allowable and allocable for grants. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with this finding. The Organization will improve its policies and procedures over disbursements in 2023.

Finding 2021-004 (Material Weakness): Compensation of Personnel Documentation Standards Criteria: According to 2 CFR Part 200.430, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Among other things, these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During the year ended December 31, 2021, the Organization?s written accounting policies did not specifically address compliance with personnel documentation standards, including tracking employee time by grant or allocation of labor costs between multiple funding sources. Effect: The lack of formalized procedures increases the risk that the Organization may not accurately charge personnel costs to federal awards. Recommendation: The Organization should improve its written policies and procedures to address the requirements of 2 CFR 200.430 and invest in additional training and resources necessary to implement them. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with this finding. The Organization will improve its written policies and procedures related to personnel documentation standards and invest in additional training and resources necessary to implement them in 2023.

Finding 2021-005 (Material Weakness): Insufficient Written Financial and Grants Management Procedures Criteria: Uniform Guidance requires organizations receiving federal grants to have many formal, written policies including a written financial management policy (in accordance with 2 CFR 200.302), grants management policy (in accordance with 2 CFR 200.303), procurement policy (in accordance with 2 CFR 200.318-200.326), payment policy (in accordance with 2 CFR 200.05), and travel policy (in accordance with 2 CFR 200.475), among other required written policies. Condition: During the year ended December 31, 2021, the Organization?s written policies did were not sufficiently in compliance with Uniform Guidance. The Organization?s financial management policies did not specifically address identifying amounts received and expended by specific grant, regularly comparing grant expenditures to grant budgets, and procedures related to determining the allowability and allocability of costs with reference to grant requirements. The Organization did not have a written grant management or procurement policy. The Organization?s payment and travel policies did not address certain elements required by Uniform Guidance. Effect: The lack of complete written policies and procedures in compliance with Uniform Guidance increases the risk that the Organization may not administer grants in compliance with federal statutes. Recommendation: The Organization should improve its written policies and procedures to address the requirements of Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with this finding. The Organization will improve its written policies and procedures related to financial management, grants management, procurement, payments, and travel.