The audit of a CNCS Social Innovation Fund award to Youthprise and four of its six subgrantees (Amherst H. Wilder Foundation, MIGIZI Communications, Sauk-Rapids Rice, and Guadalupe Alternative Programs) identified questioned Federal costs of $626,099, questioned match costs of $990,137, and compliance findings. These costs tested were incurred between August 1, 2016 and June 30, 2018. Most of the questioned costs identified were associated with (1) Youthprise improperly awarding sole-source contracts; and (2) subgrantees’ timekeeping deficiencies.
Overall, CNCS’s proposed actions addressed our recommendations. CNCS disagreed with five of 14 recommendations due to the grant period ending and the absence of future funding. CNCS has committed to monitoring Youthprise’s compliance with Federal regulations for future grants – which satisfies the intent of these recommendations.
Also, Youthprise and its subgrantees took corrective actions to improve controls over monitoring contractors; implemented a new timekeeping system and engaged CNCS preferred vendors to enhance its compliance with National Service Criminal History Checks.