Audit 31343

See Schedule of Findings and Questioned Costs for chart/table Identification as a repeat finding: Elements of this finding are repeated elements of Finding 2021-002. Finding: Internal control processes over financial accounting did not ensure that the Schedule of Expenditures of Federal Awards (SEFA) provided for audit accurately identified federal expenditures in the year when the activity related to the federal award occurred. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to prepare a complete and accurate SEFA on an annual basis in accordance with 2 CFR 200.502 in order to comply with reporting requirements associated with the use of federal funds under the Uniform Guidance. Sample Size and Population: N/A Condition and Context: The initial SEFA provided for audit contained the following errors: ? Contract 21-4619C-200 (ALN 21.027) was stated at the value of $647,709 of cash received in 2022 rather than the accrual value of expenditures in 2022. ? The CDBG (ALN 14.218) outstanding loan balance reported did not include the $430,156 outstanding at the beginning of the year per 2 CFR 500.502(b)(2). ? Contract DA21-1518 (ALN 14.231) was not included on the SEFA. Information on the SEFA is used for audit planning and by grantors. The use of incomplete or incorrect information on the SEFA can result in improper identification of major programs and related compliance requirements. Cause: Accrual accounting was not consistently applied in the preparation of the SEFA. These errors have been corrected in the attached SEFA and financial statements. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and review contract terms and federal standards for reporting. These procedures should facilitate the Organization?s preparation of the SEFA so that annual expenditures for all grant programs are accurately included on the SEFA per 2 CFR 200.502 and so that the Organization?s ongoing compliance monitoring is accurate. Questioned Costs: None Management Response and Corrective Action Plan: See Corrective Action Plan. Contact Person: Marc Taylor, Director of Finance and Administration

See Schedule of Findings and Questioned Costs for chart/table Identification as a repeat finding: Elements of this finding are repeated elements of Finding 2021-002. Finding: Internal control processes over financial accounting did not ensure that the Schedule of Expenditures of Federal Awards (SEFA) provided for audit accurately identified federal expenditures in the year when the activity related to the federal award occurred. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to prepare a complete and accurate SEFA on an annual basis in accordance with 2 CFR 200.502 in order to comply with reporting requirements associated with the use of federal funds under the Uniform Guidance. Sample Size and Population: N/A Condition and Context: The initial SEFA provided for audit contained the following errors: ? Contract 21-4619C-200 (ALN 21.027) was stated at the value of $647,709 of cash received in 2022 rather than the accrual value of expenditures in 2022. ? The CDBG (ALN 14.218) outstanding loan balance reported did not include the $430,156 outstanding at the beginning of the year per 2 CFR 500.502(b)(2). ? Contract DA21-1518 (ALN 14.231) was not included on the SEFA. Information on the SEFA is used for audit planning and by grantors. The use of incomplete or incorrect information on the SEFA can result in improper identification of major programs and related compliance requirements. Cause: Accrual accounting was not consistently applied in the preparation of the SEFA. These errors have been corrected in the attached SEFA and financial statements. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and review contract terms and federal standards for reporting. These procedures should facilitate the Organization?s preparation of the SEFA so that annual expenditures for all grant programs are accurately included on the SEFA per 2 CFR 200.502 and so that the Organization?s ongoing compliance monitoring is accurate. Questioned Costs: None Management Response and Corrective Action Plan: See Corrective Action Plan. Contact Person: Marc Taylor, Director of Finance and Administration

See Schedule of Findings and Questioned Costs for chart/table Identification as a repeat finding: Elements of this finding are repeated elements of Finding 2021-002. Finding: Internal control processes over financial accounting did not ensure that the Schedule of Expenditures of Federal Awards (SEFA) provided for audit accurately identified federal expenditures in the year when the activity related to the federal award occurred. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to prepare a complete and accurate SEFA on an annual basis in accordance with 2 CFR 200.502 in order to comply with reporting requirements associated with the use of federal funds under the Uniform Guidance. Sample Size and Population: N/A Condition and Context: The initial SEFA provided for audit contained the following errors: ? Contract 21-4619C-200 (ALN 21.027) was stated at the value of $647,709 of cash received in 2022 rather than the accrual value of expenditures in 2022. ? The CDBG (ALN 14.218) outstanding loan balance reported did not include the $430,156 outstanding at the beginning of the year per 2 CFR 500.502(b)(2). ? Contract DA21-1518 (ALN 14.231) was not included on the SEFA. Information on the SEFA is used for audit planning and by grantors. The use of incomplete or incorrect information on the SEFA can result in improper identification of major programs and related compliance requirements. Cause: Accrual accounting was not consistently applied in the preparation of the SEFA. These errors have been corrected in the attached SEFA and financial statements. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and review contract terms and federal standards for reporting. These procedures should facilitate the Organization?s preparation of the SEFA so that annual expenditures for all grant programs are accurately included on the SEFA per 2 CFR 200.502 and so that the Organization?s ongoing compliance monitoring is accurate. Questioned Costs: None Management Response and Corrective Action Plan: See Corrective Action Plan. Contact Person: Marc Taylor, Director of Finance and Administration

See Schedule of Findings and Questioned Costs for chart/table Identification as a repeat finding: Not a repeat finding. Finding: The Organization was late in filing two reports required by one program contract. Criteria: Federal contracts identify periodic reporting requirement for reports due to funders. Sample Size and Population: From a population of 18 reports identified in the Club?s AL 21.027 contracts, 4 reports were selected for testing, 2 of which were submitted late. Condition and Context: The identified contract requires monthly reports to be submitted on the 10th of the following month and end of contract report be submitted by November 10, 2022. The two reports selected for testing were submitted after the deadline established in the contract. Effect: As a result of late submissions, federal funders did not have timely access to relevant information regarding the Organization?s transactions involving federal funds. Cause: The contract reporting process was not initiated until after the deadline. Recommendation: We recommend the Organization refine its system for tracking grant reporting deadlines in order to ensure that reporting deadlines are met timely in the future. Questioned Costs: None Management Response and Corrective Action Plan: See Corrective Action Plan. Contact Person: Marc Taylor, Director of Finance and Administration

See Schedule of Findings and Questioned Costs for chart/table Identification as a repeat finding: Elements of this finding are repeated elements of Finding 2021-002. Finding: Internal control processes over financial accounting did not ensure that the Schedule of Expenditures of Federal Awards (SEFA) provided for audit accurately identified federal expenditures in the year when the activity related to the federal award occurred. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to prepare a complete and accurate SEFA on an annual basis in accordance with 2 CFR 200.502 in order to comply with reporting requirements associated with the use of federal funds under the Uniform Guidance. Sample Size and Population: N/A Condition and Context: The initial SEFA provided for audit contained the following errors: ? Contract 21-4619C-200 (ALN 21.027) was stated at the value of $647,709 of cash received in 2022 rather than the accrual value of expenditures in 2022. ? The CDBG (ALN 14.218) outstanding loan balance reported did not include the $430,156 outstanding at the beginning of the year per 2 CFR 500.502(b)(2). ? Contract DA21-1518 (ALN 14.231) was not included on the SEFA. Information on the SEFA is used for audit planning and by grantors. The use of incomplete or incorrect information on the SEFA can result in improper identification of major programs and related compliance requirements. Cause: Accrual accounting was not consistently applied in the preparation of the SEFA. These errors have been corrected in the attached SEFA and financial statements. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and review contract terms and federal standards for reporting. These procedures should facilitate the Organization?s preparation of the SEFA so that annual expenditures for all grant programs are accurately included on the SEFA per 2 CFR 200.502 and so that the Organization?s ongoing compliance monitoring is accurate. Questioned Costs: None Management Response and Corrective Action Plan: See Corrective Action Plan. Contact Person: Marc Taylor, Director of Finance and Administration

See Schedule of Findings and Questioned Costs for chart/table Identification as a repeat finding: Elements of this finding are repeated elements of Finding 2021-002. Finding: Internal control processes over financial accounting did not ensure that the Schedule of Expenditures of Federal Awards (SEFA) provided for audit accurately identified federal expenditures in the year when the activity related to the federal award occurred. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to prepare a complete and accurate SEFA on an annual basis in accordance with 2 CFR 200.502 in order to comply with reporting requirements associated with the use of federal funds under the Uniform Guidance. Sample Size and Population: N/A Condition and Context: The initial SEFA provided for audit contained the following errors: ? Contract 21-4619C-200 (ALN 21.027) was stated at the value of $647,709 of cash received in 2022 rather than the accrual value of expenditures in 2022. ? The CDBG (ALN 14.218) outstanding loan balance reported did not include the $430,156 outstanding at the beginning of the year per 2 CFR 500.502(b)(2). ? Contract DA21-1518 (ALN 14.231) was not included on the SEFA. Information on the SEFA is used for audit planning and by grantors. The use of incomplete or incorrect information on the SEFA can result in improper identification of major programs and related compliance requirements. Cause: Accrual accounting was not consistently applied in the preparation of the SEFA. These errors have been corrected in the attached SEFA and financial statements. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and review contract terms and federal standards for reporting. These procedures should facilitate the Organization?s preparation of the SEFA so that annual expenditures for all grant programs are accurately included on the SEFA per 2 CFR 200.502 and so that the Organization?s ongoing compliance monitoring is accurate. Questioned Costs: None Management Response and Corrective Action Plan: See Corrective Action Plan. Contact Person: Marc Taylor, Director of Finance and Administration

See Schedule of Findings and Questioned Costs for chart/table Identification as a repeat finding: Elements of this finding are repeated elements of Finding 2021-002. Finding: Internal control processes over financial accounting did not ensure that the Schedule of Expenditures of Federal Awards (SEFA) provided for audit accurately identified federal expenditures in the year when the activity related to the federal award occurred. Criteria: The Organization is responsible for maintaining accurate information about all federal programs and reporting requirements. The Organization is responsible for using this information to prepare a complete and accurate SEFA on an annual basis in accordance with 2 CFR 200.502 in order to comply with reporting requirements associated with the use of federal funds under the Uniform Guidance. Sample Size and Population: N/A Condition and Context: The initial SEFA provided for audit contained the following errors: ? Contract 21-4619C-200 (ALN 21.027) was stated at the value of $647,709 of cash received in 2022 rather than the accrual value of expenditures in 2022. ? The CDBG (ALN 14.218) outstanding loan balance reported did not include the $430,156 outstanding at the beginning of the year per 2 CFR 500.502(b)(2). ? Contract DA21-1518 (ALN 14.231) was not included on the SEFA. Information on the SEFA is used for audit planning and by grantors. The use of incomplete or incorrect information on the SEFA can result in improper identification of major programs and related compliance requirements. Cause: Accrual accounting was not consistently applied in the preparation of the SEFA. These errors have been corrected in the attached SEFA and financial statements. Recommendation: The Organization must continue to increase its familiarity with federal grant compliance requirements and review contract terms and federal standards for reporting. These procedures should facilitate the Organization?s preparation of the SEFA so that annual expenditures for all grant programs are accurately included on the SEFA per 2 CFR 200.502 and so that the Organization?s ongoing compliance monitoring is accurate. Questioned Costs: None Management Response and Corrective Action Plan: See Corrective Action Plan. Contact Person: Marc Taylor, Director of Finance and Administration

See Schedule of Findings and Questioned Costs for chart/table Identification as a repeat finding: Not a repeat finding. Finding: The Organization was late in filing two reports required by one program contract. Criteria: Federal contracts identify periodic reporting requirement for reports due to funders. Sample Size and Population: From a population of 18 reports identified in the Club?s AL 21.027 contracts, 4 reports were selected for testing, 2 of which were submitted late. Condition and Context: The identified contract requires monthly reports to be submitted on the 10th of the following month and end of contract report be submitted by November 10, 2022. The two reports selected for testing were submitted after the deadline established in the contract. Effect: As a result of late submissions, federal funders did not have timely access to relevant information regarding the Organization?s transactions involving federal funds. Cause: The contract reporting process was not initiated until after the deadline. Recommendation: We recommend the Organization refine its system for tracking grant reporting deadlines in order to ensure that reporting deadlines are met timely in the future. Questioned Costs: None Management Response and Corrective Action Plan: See Corrective Action Plan. Contact Person: Marc Taylor, Director of Finance and Administration