YOUNG MENS CHRISTIAN ASSOCIATION OF THE GREATER HOUSTON AREA, INC

Finding #2025-005 – Material Weakness and Other Noncompliance. Applicable federal programs: U. S. Department of Health and Human Services, 93.566, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Passed through Texas Office for Refugees: 10/01/24 – 09/30/25, FFY2025-27946V-ASA RSS, 10/01/24 – 09/30/25, FFY2025-27946V-AUSAA-RSS, 10/01/24 – 09/30/25, FFY2025-27946V-CMA, 10/01/24 – 09/30/25, FFY2025-27946V-RSS, Passed through United States Conference of Catholic Bishops: 10/01/24 – 09/30/25, 25RSI13A, Passed through U. S. Committee for Refugees: 10/01/24 – 09/30/25, RHP-2025-YMCA-Houston TX-03, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, 2502VARVMG, 10/01/23 – 09/30/24, 2402VARVMG, 93.676, Unaccompanied Alien Children Program, Passed through U. S. Committee for Refugees and Immigrants: 01/01/25 – 12/31/25, 90ZU0630-02. Criteria: 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.303 requires recipients and subrecipients of federal funds to establish, document, and maintain effective internal control over federal awards that provides reasonable assurance that the recipient is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Additionally, section 200.403 indicates that costs charged to federal awards must be necessary and reasonable for the performance of the program and be adequately documented. Condition and context: Same as finding #2025-001. Cause: Same as finding #2025-001. Effect: Same as finding #2025-001. Questioned costs: $1,275. Recommendation: Same as finding #2025-001. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2025-006 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Health and Human Services, 93.566, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Passed through Texas Office for Refugees: 10/01/24 – 09/30/25, FFY2025-27946V-ASA RSS, 10/01/24 – 09/30/25, FFY2025-27946V-AUSAA-RSS, 10/01/24 – 09/30/25, FFY2025-27946V-CMA, 10/01/24 – 09/30/25, FFY2025-27946V-RSS, Passed through United States Conference of Catholic Bishops: 10/01/24 – 09/30/25, 25RSI13A, Passed through U. S. Committee for Refugees: 10/01/24 – 09/30/25, RHP-2025-YMCA-Houston TX-03, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, 2502VARVMG, 10/01/23 – 09/30/24, 2402VARVMG, 93.676, Unaccompanied Alien Children Program, Passed through U. S. Committee for Refugees and Immigrants: 01/01/25 – 12/31/25,90ZU0630-02. Criteria: The Uniform Guidance section 200.303 requires recipients and subrecipients of federal funds to establish, document, and maintain effective internal control over federal award that provides reasonable assurance that the recipient is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Section 200.403 of the Uniform Guidance requires costs be recorded in accordance with generally accepted accounting principles. Such controls ensure that costs are charged to federal awards in the period of performance. Condition and context: Same as finding #2025-004. Cause: Same as finding #2025-004. Effect: Same as finding #2025-004. Questioned costs: $7,929. Recommendation: Same as finding #2025-004. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2025-007 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, 2502VARVMG, 10/01/23 – 09/30/24, 2402VARVMG. Criteria: Matching, Level of Effort and Earmarking 45 CFR 75 306 stipulates that matching funds must meet the following criteria: 1) verifiable from organization’s records, 2) not included as contributions for any other federal award, 3) are necessary and reasonable for accomplishment of project or program objectives, 4) are allowable under Uniform Guidance Subpart E, 5) are not paid by the federal government under another federal award except where federal statute allows, and 6) are included in approved budget when required by Health and Human Services agency. Additionally, internal controls should ensure that donated goods and services are valued at fair value, are documented, and to the extent feasible, supported by the same methods used internally by the organization. Condition and context: During our testing of 40 transactions reported as matching grant costs, we identified one exception totaling $2,679 with lack of documentation of fair value of in-kind donations. Repeat of finding #2024-003. Cause: Failure to follow the YMCA’s policies and procedures related to the valuation and documentation of in-kind items for the match grant. Questioned costs: $2,679. Effect: Lack of documentation of the determination of the fair value of in-kind items may result in an overstatement of match reported and failure to meet match requirements. Recommendation: Provide additional training and emphasize adherence to established policies and procedures to ensure maintenance of documentation for valuation documentation. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2025-008 – Eligibility – Material Weakness and Material Noncompliance. Applicable federal programs: U. S. Department of Health and Human Services, 93.566, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Passed through Texas Office for Refugees: 10/01/24 – 09/30/25, FFY2025-27946V-ASA RSS, 10/01/24 – 09/30/25, FFY2025-27946V-AUSAA-RSS, 10/01/24 – 09/30/25, FFY2025-27946V-CMA, 10/01/24 – 09/30/25, FFY2025-27946V-RSS, Passed through United States Conference of Catholic Bishops: 10/01/24 – 09/30/25, 25RSI13A, Passed through U. S. Committee for Refugees: 10/01/24 – 09/30/25, RHP-2025-YMCA-Houston TX-03, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, 2502VARVMG, 10/01/23 – 09/30/24, 2402VARVMG. Criteria: Eligibility – The YMCA is responsible for having internal control procedures for its client intake process to ensure that only eligible clients are served and documentation of their eligibility is maintained. Condition and context: The following exceptions were noted in the testing of eligibility and maintenance of documentation: Refugee and Entrant Assistance State/Replacement Designee Administered Programs – 25 out of 40 files tested for eligibility and maintenance of documentation were incomplete and lacked information to support the eligibility of the participants, and 5 out of 40 files could not be located. Refugee and Entrant Assistance Voluntary Agency Programs – 11 out of 40 files tested for eligibility and maintenance of documentation were incomplete and lacked information to support the eligibility of the participants. Effect: Failure to follow eligibility guidelines and maintain documentation of the determination of eligibility could result in ineligible participants being served. Recommendation: Strengthen policies and procedures to ensure the documentation and retention of eligibility determinations. Views of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2024-001 – Material Weakness and Other Noncompliance. Applicable federal programs: U. S. Department of State, 19.510, U. S. Refugee Admissions Program, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, SPRMCO24CA0353, 05/01/24 – 12/31/24, SPRMCO23CA0369, 10/01/23 – 09/30/24, SPRMCO23CA0367, 10/01/24 – 09/30/25, SPRMCO24CA0350. U. S. Department of Health and Human Services, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/23 – 09/30/24, 2402VARVMG-00. 93.576, Refugee and Entrant Assistance Discretionary Grants, Passed through U. S. Committee for Refugees and Immigrants: 09/30/24 – 09/29/25, GPK5RHKAEUGS, 09/30/23 – 09/29/24, 90RP0119, 09/30/22 – 09/29/23, 90RP0119-01-01, 09/30/24 – 09/29/25, 90RP0119, 09/30/22 – 09/29/23, 90RP0119, 09/30/23 – 09/29/24, 90RP0119-02-04. 93.676, Unaccompanied Children Program, 01/01/24 – 12/31/26, 90X40630-01-00. Criteria: Procurement – Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Subtitle III Procurement Standards and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance requires public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization’s policy, which for the YMCA is $150,000. Condition and context: During our testing of a sample of 9 expenditures requiring procurement, we identified that competitive procurement for $2.1 million of contracted janitorial expenditures was not performed. This is a repeat of finding #2023-003. Cause: Failure to follow the YMCA’s procurement policy by those responsible for procurement. Effect: Failure to follow formal procurement methods may result in the YMCA purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Provide additional training to employees responsible for procurement on the YMCA’s procurement policy. Views of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2024-002 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of State, 19.510, U. S. Refugee Admissions Program, Passed through U. S. Committee for Refugees and Immigrants: 10/01/24 – 09/30/25, SPRMCO24CA0353, 05/01/24 – 12/31/24, SPRMCO23CA0369, 10/01/23 – 09/30/24, SPRMCO23CA0367, 10/01/24 – 09/30/25, SPRMCO24CA0350. U. S. Department of Health and Human Services, 93.566, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Passed through Texas Office for Refugees: 10/01/24 – 09/30/25, FFY2025-27946V-ASA RSS, 01/01/23 – 09/30/24, FFY2024-27946V-ASA-RSS, 10/01/24 – 09/30/25, FFY2025-27946V-AUSAA-RSS, 10/01/23 – 09/30/24, FFY2024-27946V-AUSAA-RSS, 10/01/24 – 09/30/25, FFY2025-27946V-CMA, 10/01/23 – 09/30/24, FFY2024-27946V-CMA, 10/01/24 – 09/30/25, FFY2023-27946V-RSS, 10/01/23 – 09/30/24, FFY2024-27946V-RSS, Passed through United States Conference of Catholic Bishops: 10/01/24 – 09/30/25, 25RSI13A, 10/01/23 – 09/30/24, 2024RSIAiSD, Passed through U. S. Committee for Refugees: 10/01/24 – 09/30/25, RHP-2025-YMCA-Houston TX-03, 10/01/23 – 09/30/24, RHP-2024-YMCA-Houston TX-02, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/23 – 09/30/24, 2402VARVMG-00, 93.576, Refugee and Entrant Assistance Discretionary Grants, Passed through U. S. Committee for Refugees and Immigrants: 09/30/24 – 09/29/25, GPK5RHKAEUGS, 09/30/23 – 09/29/24, 90RP0119, 09/30/22 – 09/29/23, 90RP0119-01-01, 09/30/24 – 09/29/25, 90RP0119, 09/30/22 – 09/29/23, 90RP0119, 09/30/23 – 09/29/24, 90RP0119-02-04, 93.676, Unaccompanied Children Program, Passed through U. S. Committee for Refugees and Immigrants: 01/01/24 – 12/31/26, 90XU0630-01-00. Criteria: Allowable costs – Effective internal control includes maintenance of documentation of evidence that training compliance requirements were met for the U. S. Refugee Admissions Program for compensation costs to be allowable. For non-payroll costs, the internal control system should include independent reviews to ensure costs are reported in the period goods and services are received for compliance with period of performance and are reported to the correct cost center. Condition and context: During our testing of payroll, non-payroll and indirect cost pool transactions, we identified the following exceptions: U. S. Refugee Admissions Program AL# 19.510, For 4 employees out of 25 tested, there was no documentation that the employees completed the required training (related payroll costs $5,578). For 1 non-payroll transaction out of 25 tested, the expense was coded one month after the services were provided but was within the correct grant period. Refugee and Entrant Assistance State/Replacement Designee Administered Programs AL# 93.566, For 1 non-payroll transaction out of 25, tested the expense was reported in the incorrect grant period (related costs $4,298). Unaccompanied Children Program AL# 93.676, For 1 non-payroll transaction out of 25, tested the expense was reported in the incorrect grant period (related costs $561). Indirect Cost Pool Testing, For 2 nonpayroll transactions our of 25, tested the expenses were incorrectly coded to the indirect cost pool. Repeat of finding #2023-004. Cause: Failure to follow the YMCA’s policies and procedures related to maintenance of documentation, and review of coding for period and cost center. Effect: Failure to follow established internal control policies and procedures resulted in potential unallowable costs being charged to the grant. Questioned costs: $10,437. Recommendation: Emphasize adherence to established policies and procedures to ensure maintenance of documentation, and review of coding. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2024-003 – Material Weakness and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/23 – 09/30/24, 2402VARVMG-00. Criteria: Matching, Level of Effort and Earmarking 45 CFR 75 306 stipulates that matching funds must meet the following criteria: 1) verifiable from organization’s records, 2) not included as contributions for any other federal award, 3) are necessary and reasonable for accomplishment of project or program objectives, 4) are allowable under Uniform Guidance Subpart E, 5) are not paid by the federal government under another federal award except where federal statute allows, and 6) are included in approved budget when required by HHS award agency. Additionally, donated goods and services should be valued at fair value, must be documented, and to the extent feasible supported by the same methods used internally by the organization. Condition and context: During our testing of 40 transactions reported as matching grant costs, we identified two exceptions totaling $369 with lack of documentation of fair value of in-kind donations. Additionally, the YMCA did not meet its match requirement by approximately $281,000. Repeat of finding #2023-005. Cause: Failure to follow the YMCA’s policies and procedures related to the valuation, and documentation of in-kind items for the match grant, and failure to cumulate sufficient costs to apply towards match requirements. Effect: Potential over/under statement of the fair value of in-kind match and failure to meet match requirement. Recommendation: Provide additional training and emphasize adherence to established policies and procedures to ensure maintenance of documentation for valuation, documentation and monitoring of matching grant funds. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2024-004 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, 93.576, Refugee and Entrant Assistance Discretionary Grants, Passed through U. S. Committee for Refugees and Immigrants: 09/30/24 – 09/29/25, GPK5RHKAEUGS, 09/30/23 – 09/29/24, 90RP0119, 09/30/22 – 09/29/23, 90RP0119-01-01, 09/30/24 – 09/29/25, 90RP0119, 09/30/22 – 09/29/23, 90RP0119, 09/30/23 – 09/29/24, 90RP0119-02-04. Criteria: Reporting – Uniform Guidance and grant awards include financial and programmatic reporting requirements. Management is responsible for having an internal control system in place to ensure that reports are accurate and filed by their due dates. Condition and context: During our testing of the accuracy and timeliness of financial and programmatic programming for the major programs selected for testing, we identified the following exception: Documentation of the submission and review of the one semi-annual narrative and one semi-annual data reports tested for the Refugee and Entrant Assistance Discretionary Grants was not evidenced on the copy of the report provided. Cause: Failure to follow the YMCA’s policies and procedures related to maintenance of documentation. Effect: Failure to follow established policies and procedures resulted in lack of documentation of review and timely submission of reports. Recommendation: Provide additional training and emphasize adherence to established policies and procedures to ensure maintenance of review evidence and documentation of timely submission of reports. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2023-002 – Material Weakness and Material Noncompliance. Applicable federal programs: U. S. Department of Agriculture: Passed through The Houston Food Bank, 10.182, Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes and Local Governments, Contract periods and grant #’s: 10/01/22 – 09/30/23 1922, 10/01/23 – 09/30/24 1922, 10.187, The Emergency Food Assistance Program (TEFAP) Commodity Credit Corporation Eligible Recipient Funds (Food Commodities), Contract periods and grant #’s: 10/01/22 – 09/30/23 1922, 10/01/23 – 09/30/24 1922, 10.558, Child and Adult Care Food Program (Food Commodities), Contract periods and grant #’s: 10/01/22 – 09/30/23 1922, 10/01/23 – 09/30/24 1922, 10.559, Summer Food Service Program for Children (Food Commodities), Contract period and grant #: 10/01/22 – 09/30/23 1922, 10.569 Emergency Food Assistance Program (Food Commodities), Contract periods and grant #’s: 10/01/22 – 09/30/23 1922, 10/01/23 – 09/30/24 1922, Passed through The Montgomery County Food Bank, 10.569 Emergency Food Assistance Program (Food Commodities), Contract periods and grant #’s: 10/01/22 – 09/30/23 20601, 10/01/23 – 09/30/24 20601. Criteria: Schedule of Expenditures of Federal Awards – In accordance with the Uniform Guidance §200.508 and §200.510, management is to prepare a schedule of expenditures of federal wards (SEFA) for the period covered by the auditee’s financial statements which must include the total federal awards expended. Condition and context: The YMCA failed to include federal contributions of food commodities in its financial statements and its SEFA for fiscal years 2022 and 2023.. Cause: The YMCA failed to have procedures in place to identify and record in-kind contributions at all of its locations. Effect: Federal in-kind contributions and the direct assistance expenses were understated by $2,033,864 in the YMCA’s SEFA for fiscal year 2023 and by $1,706,466 in fiscal year 2022. Recommendation: Develop policies and procedures to identify and record in-kind donations at all YMCA sites. Views of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2023-003 – Material Weakness and Other Noncompliance. Applicable federal programs: U. S. Department of State: Passed through U. S. Committee for Refugees and Immigrants, 19.510, U. S. Refugee Admissions Program, Contract periods and grant #’s: 10/01/23 – 09/30/24 SPRMCO23CA0367, 09/01/22 – 09/30/23 SPRMCO23CA0012, 04/15/22 – 09/30/22 SFOP0008350, U. S. Department of Health and Human Services: Passed through U. S. Committee for Refugees and Immigrants, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Contract periods and grant #’s: 10/01/23 – 09/30/24 2402VARVMG-00, 10/01/21 – 09/30/23 2202VARVMG, Passed through U. S. Committee for Refugees and Immigrants, 93.576, Refugee and Entrant Assistance Discretionary Grants, Contract periods and grant #’s: 09/30/23 – 09/29/24 90RP0119, 09/30/22 – 09/29/23 90RP0119, 09/30/21 – 09/29/23 90RP0119, 09/30/22 – 09/29/23 90RP0119-01-01, 09/30/21 – 09/29/23 90RP0119-01-03, 09/30/23 – 09/29/24 90ORP0119, 09/30/23 – 09/29/24 90RP0119, 09/30/23 – 09/29/24 90RP0119-02-04, Passed through U. S. Committee for Refugees and Immigrants, 93.676, Unaccompanied Alien Children Program, Contract period and grant #: 01/01/21 – 12/31/23 90ZU0357. Criteria: Procurement – Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Subtitle III Procurement Standards and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance requires public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization’s policy, which for the YMCA is $150,000. Condition and context: During our testing of a sample of 8 expenditures requiring procurement, we identified that a competitive procurement for contracted client transportation expenditures greater than $150,000 was not performed. Additionally, documentation of policy change for people to authorize procurement decisions was not updated in the procurement policy, nor was it approved by a board action. This is a repeat of finding #2022-003. Cause: Failure to follow the YMCA’s procurement policy by those responsible for procurement and failure to timely update and obtain approval of changes to its procurement policy. Effect: Failure to follow formal procurement methods may result in the YMCA purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Failure to update approval authority for procurements could result in inappropriate procurement authorizations. Recommendation: Provide additional education to employee’s responsible for procurement on the YMCA’s procurement policy and update policies in a timely manner. Views of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2023-004 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of State, Passed through U. S. Committee for Refugee and Immigrants, 19.510, U. S. Refugee Admissions Program, Contract periods and grant #’s: 10/01/23 – 09/30/24 SPRMCO23CA0367, 09/01/22 – 09/30/23 SPRMCO23CA0012, 04/15/22 – 09/30/22 SFOP0008350. Criteria: Allowable costs – Effective internal control for grant reporting requires that independent reviews be performed to ensure that hours recorded on timesheets agrees to amounts recorded in the payroll system for labor distribution and that documentation supports the amount allocated. Without an effective system of internal controls, errors in grant billings could occur and not be identified and corrected. Condition and context: During our testing of 25 payroll transactions for the U. S. Refugee Admissions Program, we identified the following exceptions: 1. For 1 transaction, the hours per the timesheet were less than the hours charged to the program. 2. For 1 transaction, the wrong approved pay rate was used for the employee. 3. For 1 transaction, there was no evidence of approval of the time allocation. Repeat of finding #2022-002. Cause: Failure to follow the YMCA’s policies and procedures related to maintenance of documentation and approvals and review of accuracy of hours and rates charged to grants. Effect: Failure to follow established internal control policies and procedures resulted in errors and unallowable costs being charged to the grant. Questioned costs: $44,000. Recommendation: Emphasize adherence to established policies and procedures to ensure maintenance of documentation and approvals, and review of accuracy of hours charged to grants. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2023-005 – Material Weakness and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Passed through U. S. Committee for Refugee and Immigrants, 93.567, Refugee and Entrant Assistance – Matching Grant Program, Contract period and grant #: 10/01/21 – 09/30/23 2202VARVMG. Criteria: Matching, Level of Effort and Earmarking 45 CFR 75 306 stipulates that matching funds must meet the following criteria: 1) verifiable from organization’s records, 2) not included as contributions for any other federal award, 3) are necessary and reasonable for accomplishment of project or program objectives, 4) are allowable under Uniform Guidance Subpart E, 5) are not paid by the federal government under another federal award except where federal statute allows, and 6) are included in approved budget when required by HHS award agency. Additionally, donated goods and services should be valued at fair value, must be documented, and to the extent feasible supported by the same methods used internally by the organization. Condition and context: During our testing of 15 transactions reported as matching grant costs, we identified the following exceptions: 1. For 1 transaction, the basis for the valuation was not documented and there was no documentation of the distribution to clients within the match grant program. 2. For 1 transaction, the YMCA negotiated waived application fees for a transaction between a client and a third-party lessor and reported the waived fees as in-kind match. The YMCA was not a party within the lease transaction and therefore did not incur costs that meet the definition of in-kind. 3. For 2 transactions, federal commodities were used for match that were received from another federal program. Cause: Failure to follow the YMCA’s policies and procedures related to the valuation, distribution and documentation of in-kind items for the match grant. Effect: Failure to follow established policies and procedures resulted in errors and unallowable costs being reported for the matching grant and potentially failing to meet the annual match requirement. The YMCA will replace the unallowable reported costs with allowable reported costs by the final reporting period May 31, 2024. Recommendation: Provide additional training and emphasize adherence to established policies and procedures to ensure maintenance of documentation for valuation, distribution and documentation of matching grant funds. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-002 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of Health and Human Services Passed Through U. S. Committee for Refugees and Immigrants Refugee and Entrant Assistance Voluntary Agency Programs Assistance Listing #93.567 Contract period: 10/01/21 ? 09/30/23 Contract #: 2202VARVMG Criteria: Same as finding #2022-001. Condition and context: Same as finding #2022-001. Cause: Same as finding #2022-001. Effect: Same as finding #2022-001. Questioned costs: $4,353 Recommendation: Same as finding #2022-001. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-003 ? Material Weakness and Other Noncompliance Applicable federal programs: 19.510 U. S. Refugee Admissions Program 93.566 Refugee and Entrant Assistance State/Replacement Designee Administered Programs 93.567 Refugee and Entrant Assistance Voluntary Agency Programs 93.576 Refugee and Entrant Assistance Discretionary Grants 93.676 Unaccompanied Alien Children Program Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Subtitle III Procurement Standards and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance requires public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which for the YMCA is $150,000. Additionally, the YMCA?s internal control policy requires approval of sole source procurement. Condition and context: During our testing of a sample of expenditures for proper procurement in accordance with the YMCA?s policies and Uniform Guidance, we identified the following exceptions: ? Competitive procurement for furniture expenditures greater than $250,000 was not performed. ? Documentation of the reason for sole source procurement for two procurements was not approved by the Vice President of Social Equity and Inclusion as required by the YMCA?s policy. Cause: Failure to follow the YMCA?s procurement policy by those responsible for procurement. Effect: Failure to follow formal procurement methods may result in the YMCA purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Questioned costs: Unknown Recommendation: Provide additional education to employee?s responsible for procurement on the YMCA?s procurement policy. Views of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2021-002 ? Significant Deficiency and Other Non-compliance Applicable federal program: U. S. Department of Health and Human Services Refugee and Entrant Assistance State/Replacement Designee Administered Programs Assistance Listing #93.566 Contract Numbers: 2105TXRCMA, 2205TXRCMA, and 21ADTXRSSS Contract Years: 10/01/20 ? 09/30/21 and 10/01/21 ? 09/30/23 Criteria: Allowable Costs ? The Uniform Guidance, ?200.430 requires that charges to awards for salaries and wages must be based on records that accurately reflect the work performed. These records must 1) be supported by a system of internal control which provides reasonable assurance the charges are accurate, allowable and properly allocated; 2) reasonably reflect the total activity for which the employee is compensated; 3) comply with the established accounting polies and practices of the agency; and 4) support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one activity. Condition and context: In 1 of 20 payroll items we tested for the Refugee and Entrant Assistance Program, an employee was paid $1,414 more than the approved rate. There is no retroactive review to verify correct pay rates are utilized. Cause: The finding occurred as a result of the YMCA?s failure to have policies and procedures for retroactive review of entered pay rates. Effect: Failure to review and approve pay rates resulted in compensation being charged to the grant in excess of the approved pay rate. Questioned costs: $27,048 Recommendation: Implement controls in the payroll disbursement process that include timely independent supervisory reviews. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2021-003 ? Material Weakness and Other Non-compliance Applicable federal program: U. S. Department of Health and Human Services Refugee and Entrant Assistance State/Replacement Designee Administered Programs Assistance Listing #93.566 Contract Numbers: 2105TXRCMA, 2205TXRCMA, and 21ADTXRSSS Contract Years: 10/01/20 ? 09/30/21 and 10/01/21 ? 09/30/23 Criteria: Reporting ? In accordance with the grant terms, the YMCA is required to submit quarterly and final financial reports and maintain copies for their records. Additionally, in accordance with the Federal Funding Accountability and Transparency Act (FFATA), direct recipients of grants are required to report first year subawards of $30,000 or more to the FFATA Subaward Reporting System (FSRS). Condition and context: The YMCA was unable to provide copies of the quarterly and final financial reports and the FFATA reports; therefore, we were unable to test the accuracy of the reports or verify that they had been filed. Cause: As a result of staff transition and moving its corporate office, the YMCA was unable to locate the reports. Effect: Noncompliance with reporting requirements due to failure to maintain documentation of filed reports. Recommendation: Implement policies and procedures to maintain documentation of filed reports. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2020-002 ? Significant Deficiency and Other Non-compliance Applicable federal programs: U. S. Department of Justice Passed through the State of Texas, Office of the Governor Crime Victim Assistance CFDA #16.575 Contract Numbers: 3103702, 2449908, 3514702, 3514703, and 3103703 Contract Years: 10/01/18 ? 09/30/20 and 10/01/20 ? 09/30/21 U. S. Department of Treasury Passed through Harris County and Fort Bend County Coronavirus Relief Fund CFDA #21.019 Contract Number: SLT0119 ? Harris County; None ? Fort Bend County Contract Year: 03/01/20 ? 12/31/20 ? Harris County; 03/02/20 ? 08/31/21 ? Fort Bend County Criteria: Period of Performance ? The Uniform Guidance, ?200.309 indicates that only allowable costs incurred during the period of performance may be charged to the federal award. Costs incurred before the start date and after the end date of the federal award may not be charged to the award without prior approval. Management is responsible for establishing and maintaining an effective system of internal control over government grant billings to ensure all costs are reported in the correct period. Condition and context: During our testing of 10 allowable cost transactions for CFDA #16.575, we noted one transaction that was within the contact period; however, it was not recorded in the proper period. The expenditure was mileage reimbursement from 2019 that was recorded in February 2020. During our testing of 30 allowable cost transactions for CFDA #21.019, we noted one invoice for an outside consultant from November 2019 that was recorded in April 2020, which was not within the grant?s period of performance. Cause: The finding occurred as a result of the YMCA?s failure to review items charged to the grant for proper period. Effect: Failure to follow proper review procedures could result in items being charged to the grant that are outside the period of performance. Questioned costs: $3,630 Recommendation: Policies and procedures should be implemented to ensure that transactions are appropriately recognized in the correct period to ensure that costs are not charged to the grants outside of the period of performance. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2020-003 ? Significant Deficiency and Other Non-compliance Applicable federal program: U. S. Department of Justice Passed through the State of Texas, Office of the Governor Crime Victim Assistance CFDA #16.575 Contract Numbers: 3103702, 2449908, 3514702, 3514703, and 3103703 Contract Years: 10/01/18 ? 09/30/20 and 10/01/20 ? 09/30/21 U. S. Department of Treasury Passed through Harris County and Fort Bend County Coronavirus Relief Fund CFDA #21.019 Contract Number: SLT0119 ? Harris County; None ? Fort Bend County Contract Year: 03/01/20 ? 12/31/20 ? Harris County; 03/02/20 ? 08/31/21 ? Fort Bend County Criteria: Allowable Costs ? The Uniform Guidance, ?200.430 requires that charges to awards for salaries and wages must be based on records that accurately reflect the work performed. These records must 1) be supported by a system of internal control which provides reasonable assurance the charges are accurate, allowable and properly allocated; 2) reasonably reflect the total activity for which the employee is compensated; 3) comply with the established accounting polies and practices of the agency; and 4) support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one activity. Condition and context: YMCA employees utilize time and effort reports for hours provided to the organization. In 3 of 30 payroll items we tested for the Crime Victim Assistance program, and 2 of 40 payroll items tested for non-federal programs, timesheets were automatically approved because the supervisor did not approve them. There is no retroactive review by the supervisor to make sure the timesheets are correct. In addition, 1 of 30 payroll items we tested for the Crime Victim Assistance program did not have a timesheet. Cause: The finding occurred as a result of the YMCA?s failure to follow policies and procedures for approval of documentation of employee activity by pay period. Effect: Failure to review and approve timesheets could result in compensation being charged to the grant without proper supporting documentation. Questioned costs: Unknown Recommendation: Additional training should be provided on the YMCA?s policy requiring all timesheets to be approved by the employee?s supervisor and retention of timesheets. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Finding #2019-001 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of State Passed through U. S. Committee for Refugees and Immigrants U. S. Refugee Admissions Program CFDA #19.510 Contract Number: SPRMCO19CA0018 Contract Year: 10/01/18 ? 09/30/19 U. S. Department of Health and Human Services Passed through U. S. Committee for Refugees and Immigrants Refugee and Entrant Assistance Voluntary Agency Programs CFDA #93.567 Contract Number: 1902VARVMG Contract Year: 01/01/19 ? 12/31/19 U. S. Department of Health and Human Services Passed through U. S. Committee for Refugees and Immigrants Unaccompanied Alien Children Program CFDA #93.676 Contract Number: 90ZU0192-01-00 Contract Year: 02/01/18 ? 01/31/20 Criteria: Procurement ? Procurement for federal expenditures must follow the requirement of the Uniform Guidance ?200.318 and the YMCA?s procurement policies. Condition and context: During our testing of 38 transactions subject to procurement, we noted the following procurement exceptions: ? During our testing of two rent payments for monthly rent for the International Services location, we noted no procurement procedures had been performed prior to exercising the annual rent extension option. ? During our testing of four computer equipment purchases, we noted that procurement procedures were not performed where annual purchases were greater than $3,000 but less than the Simplified Acquisition Threshold. ? The YMCA?s procurement policy requires three vendor quotes for purchases greater than $3,500. We identified one instance where only two quotes were obtained instead of the required three quotes. ? The YMCA?s procurement policy requires sealed bids and public notice for purchases greater than $150,000. We noted four purchases for furniture in our sample where the annual furniture purchases totaled more than $150,000 and was not procured through sealed bids and public notice. Cause: The finding occurred as a result of the YMCA?s failure to follow their procurement policy. Effect: Failure to follow their procurement policy and Uniform Guidance could result in the YMCA?s purchase of goods or services at a cost greater than obtained if competitive procedure policies had been utilized. Questioned costs: Unknown Recommendation: Management should provide additional training to staff with purchasing authority on the procurement policy. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

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