Audit 27526

FY End
2022-12-31
Total Expended
$1.12M
Findings
32
Programs
4
Year: 2022 Accepted: 2023-09-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
25819 2022-001 Significant Deficiency - P
25820 2022-002 Significant Deficiency - P
25821 2022-003 Significant Deficiency - B
25822 2022-004 Significant Deficiency - B
25823 2022-001 Significant Deficiency - P
25824 2022-002 Significant Deficiency - P
25825 2022-003 Significant Deficiency - B
25826 2022-004 Significant Deficiency - B
25827 2022-001 Significant Deficiency - P
25828 2022-002 Significant Deficiency - P
25829 2022-003 Significant Deficiency - B
25830 2022-004 Significant Deficiency - B
25831 2022-001 Significant Deficiency - P
25832 2022-002 Significant Deficiency - P
25833 2022-003 Significant Deficiency - B
25834 2022-004 Significant Deficiency - B
602261 2022-001 Significant Deficiency - P
602262 2022-002 Significant Deficiency - P
602263 2022-003 Significant Deficiency - B
602264 2022-004 Significant Deficiency - B
602265 2022-001 Significant Deficiency - P
602266 2022-002 Significant Deficiency - P
602267 2022-003 Significant Deficiency - B
602268 2022-004 Significant Deficiency - B
602269 2022-001 Significant Deficiency - P
602270 2022-002 Significant Deficiency - P
602271 2022-003 Significant Deficiency - B
602272 2022-004 Significant Deficiency - B
602273 2022-001 Significant Deficiency - P
602274 2022-002 Significant Deficiency - P
602275 2022-003 Significant Deficiency - B
602276 2022-004 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $135,203 Yes 4
10.558 Child and Adult Care Food Program $49,184 - 0
16.726 Juvenile Mentoring Program $15,000 - 0
93.558 Temporary Assistance for Needy Families $7,110 - 0

Contacts

Name Title Type
QCKAJLNLH7X6 Walter Davis Auditee
7062348591 Lee Jennings Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.

Finding Details

Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-01: Segregation of Duties Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately. Condition: Key duties and functions are not segregated among Organization personnel. This is especially a concern in the cash management, account receivable, accounts payable, and payroll functions. Effect: Transaction could be mishandled, due to errors or fraud, that could lead to loss of assets or the reporting of misleading financial information. Cause: There are a limited number of personnel for certain functions and lack of board oversight. Identification of a repeat finding: No. Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-02: Maintenance of the General Ledger Criteria: The Organization is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data. Condition: The Organization currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data. Cause: There are no procedures in place to ensure records are kept on an accrual basis. Identification of a repeat finding: No. Recommendation: We recommend that the Organization implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-03: Approval for expenditures Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization. Condition: The Organization does not consistently document an approval process on source documents for expenditure. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure source documents are consistently approved by a member of management prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-04: Documentation for expenditures Criteria: The Organization is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement. Condition: The Organization does not consistently maintain documentation for all expenditures, especially those expended with the Organization?s credit card. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 36 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-01: Segregation of Duties Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately. Condition: Key duties and functions are not segregated among Organization personnel. This is especially a concern in the cash management, account receivable, accounts payable, and payroll functions. Effect: Transaction could be mishandled, due to errors or fraud, that could lead to loss of assets or the reporting of misleading financial information. Cause: There are a limited number of personnel for certain functions and lack of board oversight. Identification of a repeat finding: No. Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-02: Maintenance of the General Ledger Criteria: The Organization is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data. Condition: The Organization currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data. Cause: There are no procedures in place to ensure records are kept on an accrual basis. Identification of a repeat finding: No. Recommendation: We recommend that the Organization implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-03: Approval for expenditures Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization. Condition: The Organization does not consistently document an approval process on source documents for expenditure. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure source documents are consistently approved by a member of management prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-04: Documentation for expenditures Criteria: The Organization is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement. Condition: The Organization does not consistently maintain documentation for all expenditures, especially those expended with the Organization?s credit card. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 36 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-01: Segregation of Duties Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately. Condition: Key duties and functions are not segregated among Organization personnel. This is especially a concern in the cash management, account receivable, accounts payable, and payroll functions. Effect: Transaction could be mishandled, due to errors or fraud, that could lead to loss of assets or the reporting of misleading financial information. Cause: There are a limited number of personnel for certain functions and lack of board oversight. Identification of a repeat finding: No. Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-02: Maintenance of the General Ledger Criteria: The Organization is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data. Condition: The Organization currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data. Cause: There are no procedures in place to ensure records are kept on an accrual basis. Identification of a repeat finding: No. Recommendation: We recommend that the Organization implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-03: Approval for expenditures Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization. Condition: The Organization does not consistently document an approval process on source documents for expenditure. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure source documents are consistently approved by a member of management prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-04: Documentation for expenditures Criteria: The Organization is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement. Condition: The Organization does not consistently maintain documentation for all expenditures, especially those expended with the Organization?s credit card. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 36 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-01: Segregation of Duties Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately. Condition: Key duties and functions are not segregated among Organization personnel. This is especially a concern in the cash management, account receivable, accounts payable, and payroll functions. Effect: Transaction could be mishandled, due to errors or fraud, that could lead to loss of assets or the reporting of misleading financial information. Cause: There are a limited number of personnel for certain functions and lack of board oversight. Identification of a repeat finding: No. Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-02: Maintenance of the General Ledger Criteria: The Organization is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data. Condition: The Organization currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data. Cause: There are no procedures in place to ensure records are kept on an accrual basis. Identification of a repeat finding: No. Recommendation: We recommend that the Organization implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-03: Approval for expenditures Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization. Condition: The Organization does not consistently document an approval process on source documents for expenditure. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure source documents are consistently approved by a member of management prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-04: Documentation for expenditures Criteria: The Organization is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement. Condition: The Organization does not consistently maintain documentation for all expenditures, especially those expended with the Organization?s credit card. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 36 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-01: Segregation of Duties Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately. Condition: Key duties and functions are not segregated among Organization personnel. This is especially a concern in the cash management, account receivable, accounts payable, and payroll functions. Effect: Transaction could be mishandled, due to errors or fraud, that could lead to loss of assets or the reporting of misleading financial information. Cause: There are a limited number of personnel for certain functions and lack of board oversight. Identification of a repeat finding: No. Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-02: Maintenance of the General Ledger Criteria: The Organization is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data. Condition: The Organization currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data. Cause: There are no procedures in place to ensure records are kept on an accrual basis. Identification of a repeat finding: No. Recommendation: We recommend that the Organization implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-03: Approval for expenditures Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization. Condition: The Organization does not consistently document an approval process on source documents for expenditure. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure source documents are consistently approved by a member of management prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-04: Documentation for expenditures Criteria: The Organization is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement. Condition: The Organization does not consistently maintain documentation for all expenditures, especially those expended with the Organization?s credit card. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 36 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-01: Segregation of Duties Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately. Condition: Key duties and functions are not segregated among Organization personnel. This is especially a concern in the cash management, account receivable, accounts payable, and payroll functions. Effect: Transaction could be mishandled, due to errors or fraud, that could lead to loss of assets or the reporting of misleading financial information. Cause: There are a limited number of personnel for certain functions and lack of board oversight. Identification of a repeat finding: No. Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-02: Maintenance of the General Ledger Criteria: The Organization is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data. Condition: The Organization currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data. Cause: There are no procedures in place to ensure records are kept on an accrual basis. Identification of a repeat finding: No. Recommendation: We recommend that the Organization implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-03: Approval for expenditures Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization. Condition: The Organization does not consistently document an approval process on source documents for expenditure. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure source documents are consistently approved by a member of management prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-04: Documentation for expenditures Criteria: The Organization is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement. Condition: The Organization does not consistently maintain documentation for all expenditures, especially those expended with the Organization?s credit card. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 36 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-01: Segregation of Duties Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately. Condition: Key duties and functions are not segregated among Organization personnel. This is especially a concern in the cash management, account receivable, accounts payable, and payroll functions. Effect: Transaction could be mishandled, due to errors or fraud, that could lead to loss of assets or the reporting of misleading financial information. Cause: There are a limited number of personnel for certain functions and lack of board oversight. Identification of a repeat finding: No. Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-02: Maintenance of the General Ledger Criteria: The Organization is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data. Condition: The Organization currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data. Cause: There are no procedures in place to ensure records are kept on an accrual basis. Identification of a repeat finding: No. Recommendation: We recommend that the Organization implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-03: Approval for expenditures Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization. Condition: The Organization does not consistently document an approval process on source documents for expenditure. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure source documents are consistently approved by a member of management prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-04: Documentation for expenditures Criteria: The Organization is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement. Condition: The Organization does not consistently maintain documentation for all expenditures, especially those expended with the Organization?s credit card. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 36 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-01: Segregation of Duties Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately. Condition: Key duties and functions are not segregated among Organization personnel. This is especially a concern in the cash management, account receivable, accounts payable, and payroll functions. Effect: Transaction could be mishandled, due to errors or fraud, that could lead to loss of assets or the reporting of misleading financial information. Cause: There are a limited number of personnel for certain functions and lack of board oversight. Identification of a repeat finding: No. Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-02: Maintenance of the General Ledger Criteria: The Organization is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data. Condition: The Organization currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data. Cause: There are no procedures in place to ensure records are kept on an accrual basis. Identification of a repeat finding: No. Recommendation: We recommend that the Organization implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-03: Approval for expenditures Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization. Condition: The Organization does not consistently document an approval process on source documents for expenditure. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure source documents are consistently approved by a member of management prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Elementary and Secondary School Emergency Relief Funding ? American Rescue Plan (ARP) Passed through the Boys and Girls Club Alliance Education Stabilization Fund CFDA 84.425 2022-04: Documentation for expenditures Criteria: The Organization is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement. Condition: The Organization does not consistently maintain documentation for all expenditures, especially those expended with the Organization?s credit card. Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities. Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment. Identification of a repeat finding: No. Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 36 in this audit report.