YOUNG MEN'S CHRISTIAN ASSOCIATION OF RAPID CITY, INC.

Federal Program Affected: U.S. Department of Education’s 21st Century Community Learning Centers (CFDA #84.287) Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: None – amounts were below reporting threshold. Condition and Cause: During our testing of 16 payroll transactions, we noted one instance in which a timecard did not match the amount paid per the payroll register. As a result, the employee’s time was improperly overcharged to the 21st Century grant. The over charge was $25 out of a sample of $8,074. Payroll expenses charged to the grant for 2024 totaled $296,055. Criteria and Effect: Uniform Guidance requires adequate documentation, including support for all payments made. Lack of adequate documentation could result in questioned costs. Repeat Finding from Prior Year: Yes - Finding No. 2022-002 (revised and repeated). Recommendation: Management made significant improvements in the payroll process in 2023. We recommend continued diligence and training to ensure all internal control processes are followed. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.

Finding No. 2022-002: Payroll Testing Errors Federal Program Affected: U.S. Department of Education Governor?s Emergency Education Relief Fund (CFDA #84.425C) Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: None Condition and Cause: During our testing of 17 payroll transactions, we noted one instance in which a timecard did not have proper review sign-offs. However, we were able to verify the employee was properly charged to the grant. Criteria and Effect: Uniform Guidance requires adequate documentation, including support for all payments made. Lack of adequate documentation could result in questioned costs. Repeat Finding from Prior Year: Yes - Finding No. 2021-003. Recommendation: Management made significant improvements in the payroll process in 2022. We recommend continued diligence and training to ensure all internal control processes are followed. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.

Finding No. 2021-003: Payroll Testing Errors Federal Program Affected: U.S. Department of Education 21st Century Community Learning Centers (CFDA #84.287) and Governor?s Emergency Education Relief Fund (CFDA #84.425) Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: None ? amounts were below reporting threshold Condition and Cause: During our testing of 20 payroll transactions for 21st Century Community Learning Centers and 13 payroll transactions for Governor?s Emergency Education Relief Fund, we noted four instances in which employees were not being paid at the approved rate or were not being paid overtime at time and a half. There was one instance in which approval for the wage rate used was lacking. Additionally, there were three instances in which timecards dd not have proper review sign-offs. However, we were able to verify the employees were properly charged to the respective grants. Criteria and Effect: Uniform Guidance requires expenditures to follow the allowable costs as outlined in the grant agreements and also requires adequate documentation, including support for all payments made. Lack of adequate documentation could result in questioned costs. Repeat Finding from Prior Year: Yes - Finding No. 2020-003. Recommendation: Management should ensure employees are being paid at their approved wage rate and proper overtime rate. Additionally, management should ensure timesheets are reviewed for accuracy by direct supervisors and all wage forms are approved and retained in personnel files. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.

Finding No. 2021-005: Payroll Testing Errors Federal Program Affected: U.S. Department of Education Governor?s Emergency Education Relief Fund (CFDA #84.425) Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: None Condition and Cause: During our testing of Governor?s Emergency Education Relief Fund expenses, we noted one instance in which a check cleared the bank without a signature. However, we were able to verify the expenditure was properly charged to the grant. Criteria and Effect: Lack of appropriate signatures could result in misappropriation of funds. Repeat Finding from Prior Year: No Recommendation: Management should ensure all checks are reviewed for propriety prior to being disbursed. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.

Federal Program Affected: U.S. Department of Education 21st Century Community Learning Centers (CFDA #84.287) Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: None Condition and Cause: During our testing of 20 payroll transactions, we noted two instances in which approval for the wage rate used was lacking; however, we were able to verify the employee was properly charged to the grant. Criteria and Effect: Uniform Guidance requires expenditures to follow the allowable costs as outlined in the grant agreements and also requires adequate documentation, including support for all payments made. Lack of adequate documentation could result in questioned costs. Repeat Finding from Prior Year: Yes - Finding No. 2019-003. Recommendation: All wage forms are approved and retained in personnel files. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.

Finding No. 2019-003: Payroll Testing Errors Federal Program Affected: U.S. Department of Education 21st Century Community Learning Centers (CFDA #84.287) Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: None ? under reporting threshold Condition and Cause: During our testing of 20 payroll transactions, we noted two instances in which the number of hours charged to the grant was not accurate in comparison to signed and approved time sheets. Criteria and Effect: Uniform Guidance requires expenditures to follow the allowable costs as outlined in the grant agreements and also requires adequate documentation, including support for all payments made. Lack of adequate documentation could result in questioned costs. Repeat Finding from Prior Year: No Recommendation: All payroll should be carefully reviewed for accuracy, to include verifying the hours coded to each grant. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.

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