Review of the Administration on Children, Youth and Families Discretionary Grant No. 04-CY-0611-01 Awarded to the Young Adult Guidance Center, Inc. for the Period September 29, 1997 Through September 28, 2000

EXECUTIVE SUMMARY:

Overall, the Young Adult Guidance Center, Inc. (YAGC) met the goals of providing shelter and assistance to runaway and homeless youth.  However, our review of the YAGC's accounting controls revealed serious weaknesses.  These weaknesses occurred because YAGC management had not established adequate accounting controls.  As a result, charges to the Basic Center and other funding sources did not accurately reflect the actual expenses of these activities; YAGC funds totaling about $4,000 were stolen; YAGC was not aware that over $12,000 of Basic Center funds were available for program purposes; penalties and fines were assessed for late payments; vehicles were purchased without the Administration for Children and Families' knowledge; YAGC management was reimbursed for questionable expenses; and facility rental rates the YAGC paid were higher than comparable rental rates for the area.  We recommended several procedural changes to strengthen YAGC's accounting controls.  We also recommended that the YAGC evaluate its ability to properly control and account for Federal funds before submitting future Department of Health and Human Services grant proposals.  YAGC officials generally agreed with our findings and recommendations and have prepared a plan of action to improve the Center's accounting controls.