Bayaud Enterprises, Inc.Non-Profit

Information on the Federal Program: Assistance Listing Number 10.561— State Administrative Matching Grants for Supplemental Nutrition Assistance Program, United States Department of Agriculture. Pass-Through Entity: Colorado Department of Human Services. Compliance Requirements: Allowable Cost and Activities. Type of Finding: Material Noncompliance and Significant Deficiency Criteria: Program requirements state that each program participants file should follow the record retention policies contained in the grant agreementand required under 2 CFR §200.333, to support conclusion on program eligibility. Condition: For the year ended June 30, 2023, we identified one program participant file that was not retained, and were unable to confirm if program participant was eligible, and services provided were supported in file. Cause: Program staff upon termination misplaced file, and it was unable to be tracked down during audit. Effect or Potential Effect: As a result, we were not able to verify program eligibility or if services provided were supported and allowable under the program for missing file. Questioned Costs: None. Context: Of the sixty participant files tested, we identified one that was not retained and available to review. Recommendation: The entity program staff and management should ensure record retention policies are enforced. Views of Responsible : We agree with the auditor’s finding that there was no documentation available to substantiate eligibility, however we believe our actions meet the requirements of the program. While we understand that documentation should be maintained, we do believe that the services provided were in compliance with applicable standards.

2020-004 Department of Health and Human Services Passed through Colorado Department of Human Services CFDA# 93.558 Temporary Assistance for Needy Families (TANF) Allowable Costs/ Cost Principles and Allowable Activities Significant Deficiency in Internal Control over Compliance Criteria: The Uniform Guidance, Section 200.303 Internal Controls, requires that the non-Federal entity must establish and maintain documentation of effective internal controls over Federal awards that provide reasonable assurance that awards are being managed in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Condition: We tested 60 program expenditures verifying compliance requirements and controls were in place. We noted two administrative expenditures without documentation of an approval of the expense. Cause: Lack of controls over maintaining documentation of approvals. Effect: Failure to review and approve expenditures could result in unallowable costs being charged to the grant. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 60 transactions was selected for testing, which accounted for $85,454 of $690,920 of federal program expenditures. Recommendation: We recommend the Organization ensures review and approval controls are in place and documentation of such approvals is retained for all expenditures. Views of Responsible Officials: Management agrees with the finding.