The Center for Youth and Family SolutionsNon-Profit

2025-001 – Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program: Social Services Block Grant Assistance Listing #: 93.667 Type of Finding: • Other Matter and Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Federal cost principles require federal award expenditures to be incurred within the period of performance for the grant. Condition: We noted two disbursements reported that were incurred outside of the period of performance for the grant. Questioned Costs: $77 Context: The expenditures were incurred the day after the grant period ended. However, due to the timing of the receipt of the vendor invoice were recorded in the grant period. Cause: Management oversight. Effect: The Center is not in compliance with the federal program. Repeat Finding: No Recommendation: We recommend that the Center implement specific controls around cut off for expenditures to ensure expenditures are recorded in the proper period in accordance with the grant. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding. Management will monitor expenditures closely to ensure expenditures are recorded in the proper period.

Criteria or specific requirement: According to Article XIII, paragraph 13.1, the grantee is required to comply with Exhibit B, paragraph A of Grant FSCWR01035 Agreement, which states that the grantee is required to submit monthly expenditure documentation forms within 15 days of the end of each month for the preceding month to the State. Condition: During our testing of eight total reports, we identified two instances of late submission for Grant FSCWR01035. Questioned costs: None Context: We selected eight reports for testing and noted two instances where the submission process was not timely followed. Cause: The reports were submitted late due to monthly closing delayed due to implementing a new payroll system for the agency. Effect: Submission of late reporting can result in held funds or refusal of payment and breach of contract with the Department of Health and Human Services. Repeat Finding: Yes Recommendation: We recommend that the Center reemphasize the importance of its monthly control process to ensure required financial reports are timely submitted. Views of responsible officials: The Center is in agreement with the audit finding. For the remainder of the FY19 contract, the Center will submit the monthly expenditure documentation within 15 days of the end of the previous month. As advised by DHS, the Center will use an estimate if actual expenditures are not available by the filing deadline. Due to the continuing issue related to timely filing of this report within 15 days of the end of the previous month, beginning in fiscal year 2020, DHS has extended the deadline in order to reflect a more realistic timeline. The new guidelines now state that the grantee is required to submit monthly expenditure documentation forms within 30 days of the end of each month for the preceding month to the State.

Criteria or specific requirement: According to 2 CFR part 200, Appendix XI Compliance supplement subsection CFDA 93.667 Social Services Black Grant sub paragraph B funds must be expended by the Entity in the fiscal year allotted or in the succeeding fiscal year. Condition: During our testing we identified three instances of expenses being charge in the wrong period. Questioned costs: $76.29 Context: We selected 25 disbursements for testing and noted three instances where the expenditures were recorded in the wrong period. Cause: There was no specific cause for these expenditures being recorded in the wrong period, it was simply an oversight and was not detected in the review process. Effect: Expenses were recorded in the wrong period. Repeat Finding: No Recommendation: We recommend that the Center reemphasize the importance of the expenditure review control process, ensuring that all expenses are properly recorded in the correct period. Views of responsible officials: The Center is in agreement with the audit finding. They will start separating the invoices at the end of the fiscal year to record the expenses in the correct fiscal year.

GSA_MIGRATION