Valley of the Sun Young Men's Christian Association

Item: 2024-001 Assistance Listing Number: 17.289 Program: Community Project Funding/ Congressionally Directed Spending Federal Agency: U.S. Department of Labor Pass-Through Agencies: N/A Contract Number: 24A60CP000265-01-00 Award Year: April 1, 2024 – December 31, 2024 Compliance Requirement: Reporting Criteria: Per the grant agreement, award recipients are required to submit quarterly and final narrative reports on grant activities funded under this award. All reports are due by the 15th day of the second month after each calendar-year quarter. Condition: A required report was not submitted to the granting agency timely. Questioned Costs: Unknown Context: In a population of two quarterly reports submitted during the period, we tested both reports. We noted one quarterly report was submitted 1 business day after the required due date. This is deemed to be a significant deficiency in internal control over compliance. Effect: The system of internal controls was not properly implemented to ensure timely report submission. Cause: The individual responsible for the filing of the report did not complete the task of filing on the due date. The matter was resolved on the next business day. Identification as a Repeat Finding: Not a repeat finding. Recommendation: The Association should enhance its processes and controls to ensure that required reports are submitted to granting agencies by the required due dates. Views of Responsible Officials: Management of the Association concurs with the finding. See Corrective Action Plan.

Item: 2024-002 Assistance Listing Number: 93.434 Program: Every Student Succeeds Act/Preschool Development Grants Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: State of Arizona Contract Number: 90TP0087-01-00 Award Year: January 1, 2024 – September 30, 2024 Compliance Requirement: Reporting Criteria: Per the Preschool Development grant (“PDG”) manual provided by the grantor, a completion report is required to be submitted at the end of each grant award period. Condition: Required report was not submitted to the granting agency timely. Questioned Costs: Unknown Context: In our testing of the Cohort-1 grant awarded under PDG, we tested the one completion report due within 3 months of the period end, which was September 30, 2024. The submission was submitted 5 days after the required due date. This is deemed to be a material weakness in internal control over compliance. Effect: The system of internal controls was not properly implemented to ensure timely report submission. Cause: The Association did not have a process to confirm/verify the due date for this report. Upon notification from the granting agency, the Association submitted the required report. Identification as a Repeat Finding: Not a repeat finding. Recommendation: The Association should enhance its processes and controls to ensure that required reports are submitted to granting agencies by the required due dates. Views of Responsible Officials: Management of the Association concurs with the finding. See Corrective Action Plan.