Audit of HIV/AIDS Grant Expenditures at the Sexual Minority Youth Assistance League for the Period September 30, 2001 through September 29, 2002

EXECUTIVE SUMMARY:

The objectives of this audit were to determine whether the Sexual Minority Youth Assistance League (SMYAL):  (1) met grant performance expectations during the period September 30, 2001 through September 29, 2002 for a grant funded by the Centers for Disease Control and Prevention (CDC); and (2) was in compliance with grant financial and reporting requirements.  We found that in general SMYAL has met CDC performance expectations, and was compliant with the grant financial and reporting requirements. Specifically, SMYAL improved its internal accounting controls during the audit period in three areas, time reporting, cash disbursements and policies and procedures.These improvements will help to ensure that grant expenses are properly documented and grant funds are used for the intended purpose.  However, SMYAL charged $1,155 in unallowable costs for advertising buttons and stickers that were not related to the grant. We recommended that SMYAL:  (1) continue improving its internal accounting controls, internal accounting control awareness and provide effective dates, revision numbers and board approval on its financial policies and procedures; and (2) return $1,155 to the grant for unallowable costs that were incurred for advertising buttons and stickers.  SMYAL concurred with our findings and recommendations.