Alexander Youth Network

Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): B. Allowable Costs: In accordance with 2 CFR § 200.403(e), costs must be determined in accordance with generally accepted accounting principles. Additionally, costs must be adequately documented (2 CFR 200.403(g)). Condition: For 3 out of the 26 transactions selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the expenditures were recorded for an inaccurate amount. For 1 out of 25 transactions selected for the Transitional Living for Homeless Youth program, the expenditure was not accrued in the appropriate fiscal year in accordance with U.S. GAAP. Cause: Administrative oversight in expenditure review caused inaccurate recording of expenditures. Additionally, the Organization did not have policies in place to review year-end grant expenditures for proper cutoff below a certain threshold. Effect or Potential Effect: The Organization was not in compliance with allowable cost requirements. Questioned Costs: Below reportable threshold. Context: Federal expenditures must meet allowable cost requirements in accordance with 2 CFR 200. Identification as a Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the Organization enhance its procedures over allowable costs. Views of Responsible Officials and Planned Corrective Actions: An additional level of review by Director of Finance and Business will be added to ensure accuracy of expenditures. Management will add additional controls to year end check list to identify and accrue any expenses incurred on or prior to year end.

FINDING 2023-002 Federal Program Information: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Transitional Living for Homeless Youth (ALN 93.550) Basic Center Grant (ALN 93.623) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting: The non-federal entity must submit performance reports at the interval required by the federal awarding agency or pass-through entity to best inform improvements in program outcomes and productivity (2 CFR 200.329 (c)(1)). Condition: For 2 out of the 5 reports selected for the Transitional Living for Homeless Youth program, the reports were not submitted within the required timeframe. For 2 out of the 8 reports selected for the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program, the reports were not submitted within the required timeframe. For 3 out of the 8 reports selected, there was no evidence of submission. For 2 out of the 5 reports selected for the Basic Grant program, the reports were not submitted within the required timeframe. Cause: Lack of administrative oversight in regard to periodic reporting. Effect or Potential Effect: The Organization was not in compliance with the reporting requirements. Questioned Costs: None. Context: The U.S. Department of Health and Human Services requires semi-annual federal financial reports be submitted into the HHS Payment Management System (PMS) and semi-annual performance progress reports be submitted into the GrantSolutions system 30 days after the end of the semi-annual period. For 2 semi-annual financial reports selected and 2 semi-annual performance report selected, the reports were not submitted within the required timeframe. The pass-through entity, Mecklenburg County, requires subrecipients to submit monthly expenditure and performance reports via email 15 days after each month end. For 2 months selected, the reports were not submitted within the required timeframe. For 3 months selected, the Organization was unable to provide evidence of submission. Identification as a Repeat Finding: 2022-001 Recommendation: We recommend the Organization enhance its procedures to ensure timely reporting. Views of Responsible Officials and Planned Corrective Actions: To prevent further late reports, internal calendar notifications will be added to the Executive Director and Program Director’s calendars. The Director of Finance & Business will monitor status of report submissions. The Chief of Staff of the program will maintain adequate documentation of report submissions.

The pass-through entity, North Carolina Department of Public Safety, requires subrecipients to submit quarterly performance reports into the OVC-Performance Measurement Tool (the ?OVC-PMT?) system within 30 days of each quarter end. For 1 of 2 quarters selected for testing, the Organization did not submit quarterly reports containing performance data through the OVC-PMT system within the required timeframe.

Finding 2021-002: Matching or Cost Sharing U.S. Department of Health and Human Services 93.550 Transitional Living for Homeless Youth Criteria or specific requirement: Matching or cost sharing includes requirements to provide contributions (usually nonfederal) of a specified amount or percentage to match federal awards. Matching may be in the form of allowable costs incurred or in-kind contributions. Condition: Matching or cost sharing requirement was not properly applied when requesting reimbursement for allowable program expenditures. Cause: Process was not in place to properly determine the federal and nonfederal shares of expenditures. Effect: The Organization overcharged the federal award. Questioned cost: Known questioned cost, the overcharge of federal award, was $24,951. Context: We recomputed the federal and nonfederal share of expenditures for the entire year ending September 30, 2021 to determine the total overcharge. Repeat finding: No. Recommendation: The Organization should implement procedures to properly determine the federal and nonfederal share of expenditures. Views of responsible official: See corrective action plan.