Audit 310136

FY End
2023-12-31
Total Expended
$11.21M
Findings
16
Programs
6
Year: 2023 Accepted: 2024-06-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
402890 2023-001 Significant Deficiency - B
402891 2023-002 Significant Deficiency - N
402892 2023-001 Significant Deficiency - B
402893 2023-002 Significant Deficiency - N
402894 2023-001 Significant Deficiency - B
402895 2023-002 Significant Deficiency - N
402896 2023-001 Significant Deficiency - B
402897 2023-002 Significant Deficiency - N
979332 2023-001 Significant Deficiency - B
979333 2023-002 Significant Deficiency - N
979334 2023-001 Significant Deficiency - B
979335 2023-002 Significant Deficiency - N
979336 2023-001 Significant Deficiency - B
979337 2023-002 Significant Deficiency - N
979338 2023-001 Significant Deficiency - B
979339 2023-002 Significant Deficiency - N

Contacts

Name Title Type
QDYKW8QXMLB4 Walker Schul Auditee
6152599622 Jeff Fox Auditor
No contacts on file

Notes to SEFA

Title: Note 2—Basis of presentation Accounting Policies: The schedule of expenditures of federal awards and state financial assistance (the “Schedule”) is prepared on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Young Men's Christian Association of Middle Tennessee (the “YMCA”), it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the YMCA. De Minimis Rate Used: N Rate Explanation: The YMCA did not elect to use the 10% de minimis indirect cost rate; however, no indirect costs were allocated to the awards during 2023. The accompanying Schedule depicts the expenditures of the federal and state awards. The Child and Adult Care Food Program for Contract No. 10.558 and Summer Food Service Program for Children Contract No. 10.559 are fixed, per diem rate contracts.
Title: Note 4—Noncash awards Accounting Policies: The schedule of expenditures of federal awards and state financial assistance (the “Schedule”) is prepared on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Young Men's Christian Association of Middle Tennessee (the “YMCA”), it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the YMCA. De Minimis Rate Used: N Rate Explanation: The YMCA did not elect to use the 10% de minimis indirect cost rate; however, no indirect costs were allocated to the awards during 2023. The YMCA did not receive noncash federal awards during the year ended December 31, 2023.
Title: Note 5—Subrecipients Accounting Policies: The schedule of expenditures of federal awards and state financial assistance (the “Schedule”) is prepared on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Young Men's Christian Association of Middle Tennessee (the “YMCA”), it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the YMCA. De Minimis Rate Used: N Rate Explanation: The YMCA did not elect to use the 10% de minimis indirect cost rate; however, no indirect costs were allocated to the awards during 2023. The Organization did not have expenditures to subrecipients during the year ended December 31, 2023.
Title: Note 6—Contingencies Accounting Policies: The schedule of expenditures of federal awards and state financial assistance (the “Schedule”) is prepared on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Young Men's Christian Association of Middle Tennessee (the “YMCA”), it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the YMCA. De Minimis Rate Used: N Rate Explanation: The YMCA did not elect to use the 10% de minimis indirect cost rate; however, no indirect costs were allocated to the awards during 2023. These programs are subject to financial and compliance audits by grantor agencies. The amount, if any, of expenditures that may be disallowed by the grantor agencies cannot be determined at this time, although the YMCA expects such amounts, if any, to be immaterial.

Finding Details

Finding 2023-001 – Significant Deficiency in Internal Controls over Allowable Costs (Payroll) – COVID-19 ARPA Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with the grant requirements regarding allowable costs, including payroll applied to the grant. Condition: During the audit, we noted insufficient evidence of the performance of controls related to the review and approval of information on employee time sheets and pay rates for 2021. Cause: During the last quarter of the year ended December 31, 2021, the YMCA transitioned from its previous external payroll processing company to another external payroll processing company. The evidence of the performance of the controls related to the review and approval of information on employee time sheets and pay rates for 2021 was not retained after the transition. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on employee time sheets and pay rates including proper evidence is maintained of the control over compliance with allowable cost requirements, related to payroll. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed and evidenced appropriately for 2023.
Finding 2023-002 – Significant Deficiency in Internal Controls over Reports Submitted to Grantors – Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with financial reporting on a periodic basis. Condition: During the audit, we noted no evidence of the performance of controls related to the review of reports required to be submitted to grantors for the period July 1, 2023 through December 31, 2023. Cause: During the last two quarters of the year ended December 31, 2023, the YMCA grants management team began reviewing grant reports and verbally discussing them before submission to the grantor. No evidence of the performance of the controls related to the review and approval of the reports to be submitted to the grantor was retained. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on grant reporting ensuring that proper evidence is maintained of the control over compliance with financial reporting requirements. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed.
Finding 2023-001 – Significant Deficiency in Internal Controls over Allowable Costs (Payroll) – COVID-19 ARPA Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with the grant requirements regarding allowable costs, including payroll applied to the grant. Condition: During the audit, we noted insufficient evidence of the performance of controls related to the review and approval of information on employee time sheets and pay rates for 2021. Cause: During the last quarter of the year ended December 31, 2021, the YMCA transitioned from its previous external payroll processing company to another external payroll processing company. The evidence of the performance of the controls related to the review and approval of information on employee time sheets and pay rates for 2021 was not retained after the transition. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on employee time sheets and pay rates including proper evidence is maintained of the control over compliance with allowable cost requirements, related to payroll. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed and evidenced appropriately for 2023.
Finding 2023-002 – Significant Deficiency in Internal Controls over Reports Submitted to Grantors – Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with financial reporting on a periodic basis. Condition: During the audit, we noted no evidence of the performance of controls related to the review of reports required to be submitted to grantors for the period July 1, 2023 through December 31, 2023. Cause: During the last two quarters of the year ended December 31, 2023, the YMCA grants management team began reviewing grant reports and verbally discussing them before submission to the grantor. No evidence of the performance of the controls related to the review and approval of the reports to be submitted to the grantor was retained. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on grant reporting ensuring that proper evidence is maintained of the control over compliance with financial reporting requirements. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed.
Finding 2023-001 – Significant Deficiency in Internal Controls over Allowable Costs (Payroll) – COVID-19 ARPA Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with the grant requirements regarding allowable costs, including payroll applied to the grant. Condition: During the audit, we noted insufficient evidence of the performance of controls related to the review and approval of information on employee time sheets and pay rates for 2021. Cause: During the last quarter of the year ended December 31, 2021, the YMCA transitioned from its previous external payroll processing company to another external payroll processing company. The evidence of the performance of the controls related to the review and approval of information on employee time sheets and pay rates for 2021 was not retained after the transition. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on employee time sheets and pay rates including proper evidence is maintained of the control over compliance with allowable cost requirements, related to payroll. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed and evidenced appropriately for 2023.
Finding 2023-002 – Significant Deficiency in Internal Controls over Reports Submitted to Grantors – Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with financial reporting on a periodic basis. Condition: During the audit, we noted no evidence of the performance of controls related to the review of reports required to be submitted to grantors for the period July 1, 2023 through December 31, 2023. Cause: During the last two quarters of the year ended December 31, 2023, the YMCA grants management team began reviewing grant reports and verbally discussing them before submission to the grantor. No evidence of the performance of the controls related to the review and approval of the reports to be submitted to the grantor was retained. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on grant reporting ensuring that proper evidence is maintained of the control over compliance with financial reporting requirements. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed.
Finding 2023-001 – Significant Deficiency in Internal Controls over Allowable Costs (Payroll) – COVID-19 ARPA Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with the grant requirements regarding allowable costs, including payroll applied to the grant. Condition: During the audit, we noted insufficient evidence of the performance of controls related to the review and approval of information on employee time sheets and pay rates for 2021. Cause: During the last quarter of the year ended December 31, 2021, the YMCA transitioned from its previous external payroll processing company to another external payroll processing company. The evidence of the performance of the controls related to the review and approval of information on employee time sheets and pay rates for 2021 was not retained after the transition. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on employee time sheets and pay rates including proper evidence is maintained of the control over compliance with allowable cost requirements, related to payroll. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed and evidenced appropriately for 2023.
Finding 2023-002 – Significant Deficiency in Internal Controls over Reports Submitted to Grantors – Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with financial reporting on a periodic basis. Condition: During the audit, we noted no evidence of the performance of controls related to the review of reports required to be submitted to grantors for the period July 1, 2023 through December 31, 2023. Cause: During the last two quarters of the year ended December 31, 2023, the YMCA grants management team began reviewing grant reports and verbally discussing them before submission to the grantor. No evidence of the performance of the controls related to the review and approval of the reports to be submitted to the grantor was retained. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on grant reporting ensuring that proper evidence is maintained of the control over compliance with financial reporting requirements. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed.
Finding 2023-001 – Significant Deficiency in Internal Controls over Allowable Costs (Payroll) – COVID-19 ARPA Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with the grant requirements regarding allowable costs, including payroll applied to the grant. Condition: During the audit, we noted insufficient evidence of the performance of controls related to the review and approval of information on employee time sheets and pay rates for 2021. Cause: During the last quarter of the year ended December 31, 2021, the YMCA transitioned from its previous external payroll processing company to another external payroll processing company. The evidence of the performance of the controls related to the review and approval of information on employee time sheets and pay rates for 2021 was not retained after the transition. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on employee time sheets and pay rates including proper evidence is maintained of the control over compliance with allowable cost requirements, related to payroll. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed and evidenced appropriately for 2023.
Finding 2023-002 – Significant Deficiency in Internal Controls over Reports Submitted to Grantors – Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with financial reporting on a periodic basis. Condition: During the audit, we noted no evidence of the performance of controls related to the review of reports required to be submitted to grantors for the period July 1, 2023 through December 31, 2023. Cause: During the last two quarters of the year ended December 31, 2023, the YMCA grants management team began reviewing grant reports and verbally discussing them before submission to the grantor. No evidence of the performance of the controls related to the review and approval of the reports to be submitted to the grantor was retained. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on grant reporting ensuring that proper evidence is maintained of the control over compliance with financial reporting requirements. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed.
Finding 2023-001 – Significant Deficiency in Internal Controls over Allowable Costs (Payroll) – COVID-19 ARPA Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with the grant requirements regarding allowable costs, including payroll applied to the grant. Condition: During the audit, we noted insufficient evidence of the performance of controls related to the review and approval of information on employee time sheets and pay rates for 2021. Cause: During the last quarter of the year ended December 31, 2021, the YMCA transitioned from its previous external payroll processing company to another external payroll processing company. The evidence of the performance of the controls related to the review and approval of information on employee time sheets and pay rates for 2021 was not retained after the transition. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on employee time sheets and pay rates including proper evidence is maintained of the control over compliance with allowable cost requirements, related to payroll. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed and evidenced appropriately for 2023.
Finding 2023-002 – Significant Deficiency in Internal Controls over Reports Submitted to Grantors – Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with financial reporting on a periodic basis. Condition: During the audit, we noted no evidence of the performance of controls related to the review of reports required to be submitted to grantors for the period July 1, 2023 through December 31, 2023. Cause: During the last two quarters of the year ended December 31, 2023, the YMCA grants management team began reviewing grant reports and verbally discussing them before submission to the grantor. No evidence of the performance of the controls related to the review and approval of the reports to be submitted to the grantor was retained. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on grant reporting ensuring that proper evidence is maintained of the control over compliance with financial reporting requirements. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed.
Finding 2023-001 – Significant Deficiency in Internal Controls over Allowable Costs (Payroll) – COVID-19 ARPA Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with the grant requirements regarding allowable costs, including payroll applied to the grant. Condition: During the audit, we noted insufficient evidence of the performance of controls related to the review and approval of information on employee time sheets and pay rates for 2021. Cause: During the last quarter of the year ended December 31, 2021, the YMCA transitioned from its previous external payroll processing company to another external payroll processing company. The evidence of the performance of the controls related to the review and approval of information on employee time sheets and pay rates for 2021 was not retained after the transition. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on employee time sheets and pay rates including proper evidence is maintained of the control over compliance with allowable cost requirements, related to payroll. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed and evidenced appropriately for 2023.
Finding 2023-002 – Significant Deficiency in Internal Controls over Reports Submitted to Grantors – Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with financial reporting on a periodic basis. Condition: During the audit, we noted no evidence of the performance of controls related to the review of reports required to be submitted to grantors for the period July 1, 2023 through December 31, 2023. Cause: During the last two quarters of the year ended December 31, 2023, the YMCA grants management team began reviewing grant reports and verbally discussing them before submission to the grantor. No evidence of the performance of the controls related to the review and approval of the reports to be submitted to the grantor was retained. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on grant reporting ensuring that proper evidence is maintained of the control over compliance with financial reporting requirements. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed.
Finding 2023-001 – Significant Deficiency in Internal Controls over Allowable Costs (Payroll) – COVID-19 ARPA Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with the grant requirements regarding allowable costs, including payroll applied to the grant. Condition: During the audit, we noted insufficient evidence of the performance of controls related to the review and approval of information on employee time sheets and pay rates for 2021. Cause: During the last quarter of the year ended December 31, 2021, the YMCA transitioned from its previous external payroll processing company to another external payroll processing company. The evidence of the performance of the controls related to the review and approval of information on employee time sheets and pay rates for 2021 was not retained after the transition. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on employee time sheets and pay rates including proper evidence is maintained of the control over compliance with allowable cost requirements, related to payroll. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed and evidenced appropriately for 2023.
Finding 2023-002 – Significant Deficiency in Internal Controls over Reports Submitted to Grantors – Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with financial reporting on a periodic basis. Condition: During the audit, we noted no evidence of the performance of controls related to the review of reports required to be submitted to grantors for the period July 1, 2023 through December 31, 2023. Cause: During the last two quarters of the year ended December 31, 2023, the YMCA grants management team began reviewing grant reports and verbally discussing them before submission to the grantor. No evidence of the performance of the controls related to the review and approval of the reports to be submitted to the grantor was retained. Effect: The YMCA is not able to produce documentation that the internal controls implemented are operating effectively. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on grant reporting ensuring that proper evidence is maintained of the control over compliance with financial reporting requirements. Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed.