Audit 22706

Finding 2022-001 ? Internal Control over Grant Reporting Finding Resolution Status: In Process. Information on Universe and Population Size: This is not applicable. Sample Size Information: This is not applicable. Noncompliance Information: Inadvertently overbilling governmental grants. Statement of Condition: LifeSmart Youth?s booking company prepares the monthly financial reports which are used to create claims for reimbursement. For one vendor, duplicate expenses were inadvertently entered (not paid) in the accounting software which was used on the governmental claims for reimbursement. LifeSmart Youth?s internal control over grant reporting did not catch these duplicate amounts. Criteria: LifeSmart Youth lacks internal controls over grant reporting. Effect or Potential Effect: Due to the lack of internal controls over grant reporting, inaccurate governmental claims were submitted for reimbursement. The error occurred with one vendor and has been resolved going forward. Cause: LifeSmart Youth relied the on third party bookkeeping company and did not review the underlying supporting documents. LifeSmart Youth?s internal control did not catch these duplicate amounts. Recommendation: LifeSmart Youth should review the underlying documents used to create claims for reimbursement from governmental agencies. Auditor Noncompliance Information: S ? Internal Control Deficiency. Questioned Costs: $17,450 Reporting Views of Responsible Officials: LifeSmart Youth will review the underlying documents used to create claims for reimbursement from governmental agencies. Concur or Do Not Concur with This Finding: Concur. Agree or Disagree with Auditor Recommendations: Agree. Completion Date: November 30, 2022 Actions Taken or Plan on the Finding: For the questioned costs, LifeSmart Youth will reduce future claims until those amounts are paid back in full.

Finding 2022-001 ? Internal Control over Grant Reporting Finding Resolution Status: In Process. Information on Universe and Population Size: This is not applicable. Sample Size Information: This is not applicable. Noncompliance Information: Inadvertently overbilling governmental grants. Statement of Condition: LifeSmart Youth?s booking company prepares the monthly financial reports which are used to create claims for reimbursement. For one vendor, duplicate expenses were inadvertently entered (not paid) in the accounting software which was used on the governmental claims for reimbursement. LifeSmart Youth?s internal control over grant reporting did not catch these duplicate amounts. Criteria: LifeSmart Youth lacks internal controls over grant reporting. Effect or Potential Effect: Due to the lack of internal controls over grant reporting, inaccurate governmental claims were submitted for reimbursement. The error occurred with one vendor and has been resolved going forward. Cause: LifeSmart Youth relied the on third party bookkeeping company and did not review the underlying supporting documents. LifeSmart Youth?s internal control did not catch these duplicate amounts. Recommendation: LifeSmart Youth should review the underlying documents used to create claims for reimbursement from governmental agencies. Auditor Noncompliance Information: S ? Internal Control Deficiency. Questioned Costs: $17,450 Reporting Views of Responsible Officials: LifeSmart Youth will review the underlying documents used to create claims for reimbursement from governmental agencies. Concur or Do Not Concur with This Finding: Concur. Agree or Disagree with Auditor Recommendations: Agree. Completion Date: November 30, 2022 Actions Taken or Plan on the Finding: For the questioned costs, LifeSmart Youth will reduce future claims until those amounts are paid back in full.