FAC Explorer

Audit 317936

FY End
2023-12-31
Total Expended
$3.87M
Findings
12
Programs
7
Organization: Boys and Girls Clubs of Greater Houston, Inc. and Controlled Org (TX)
Year: 2023 Accepted: 2024-08-27
Auditor: Blazek & Vetterling

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
485132 2023-002 Material Weakness - B
485133 2023-003 Material Weakness - B
485134 2023-002 Material Weakness - B
485135 2023-003 Material Weakness - B
485136 2023-002 Material Weakness - B
485137 2023-003 Material Weakness - B
1061574 2023-002 Material Weakness - B
1061575 2023-003 Material Weakness - B
1061576 2023-002 Material Weakness - B
1061577 2023-003 Material Weakness - B
1061578 2023-002 Material Weakness - B
1061579 2023-003 Material Weakness - B

Programs

ALN Program Spent Major Findings
10.569 Emergency Food Assistance Program (food Commodities) $1.07M Yes 0
16.726 Juvenile Mentoring Program $492,719 - 0
84.287 Twenty-First Century Community Learning Centers $489,491 - 0
84.425 Education Stabilization Fund $291,107 Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $237,500 - 0
93.268 Immunization Cooperative Agreements $154,538 - 0
17.261 Wia Pilots, Demonstrations, and Research Projects $98,441 - 0

Contacts

Name Title Type
Z7ENRFWUDUJ1 Jonathan D. Sturgis Auditee
7134002953 Tami Preece Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenses include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in Boys and Girls Clubs’ financial statements in conformity with generally accepted accounting principles. Boys and Girls Clubs does not utilize the 10% de minimus cost rate for indirect costs and does not have subrecipients. Because the schedule presents only a selected portion of the operations of Boys and Girls Clubs, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Boys and Girls Clubs. De Minimis Rate Used: N Rate Explanation: The Auditee has elected not to use an indirect cost rate. Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenses include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in Boys and Girls Clubs’ financial statements in conformity with generally accepted accounting principles. Boys and Girls Clubs does not utilize the 10% de minimus cost rate for indirect costs and does not have subrecipients. Because the schedule presents only a selected portion of the operations of Boys and Girls Clubs, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Boys and Girls Clubs.
Title: NOTE 2 – FOOD COMMODITIES Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenses include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in Boys and Girls Clubs’ financial statements in conformity with generally accepted accounting principles. Boys and Girls Clubs does not utilize the 10% de minimus cost rate for indirect costs and does not have subrecipients. Because the schedule presents only a selected portion of the operations of Boys and Girls Clubs, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Boys and Girls Clubs. De Minimis Rate Used: N Rate Explanation: The Auditee has elected not to use an indirect cost rate. Food commodities are reported in the schedule of expenditures of federal awards as federal expenditures when distributed and are valued at the weighted-average wholesale value of one pound of donated product based on the national per pound price as provided by the most recent Feeding America Product Valuation Survey ($1.93 in 2023).

Finding Details

Finding 2023-002
Finding #2023-002 – Material Weakness. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24. Contract number: 215280587110020. Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None. Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Criteria: Allowable costs – Same as finding #2023-001. Condition and context: Same as finding #2023-001. Cause: Same as finding #2023-001. Effect: Same as finding #2023-001. Questioned costs: Unknown. Recommendation: Same as finding #2023-001. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-003
Finding #2023-003 – Material Weakness and Material Noncompliance. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24, Contract number: 215280587110020. Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None, Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Criteria: Allowable costs – The Uniform Guidance, Subpart E Cost Principles, requires that charges to federal awards for salaries and wages be based on records that accurately reflect work performed and support the distribution of an employee’s salary or wages among specific activities or cost objectives, which includes being supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition and context: In a sample of 30 payroll transactions, 7 did not have timesheets to support the allocation of salary costs charged to the major program; however, 1 of the 7 was charged 100% to the award. Further investigation revealed that Boys and Girls Clubs did not require time and effort reporting for program management personnel whose time charged to the awards totaled approximately $245,000. Cause: A lack of understanding that all time charged to the award must be supported by time and effort reporting. Effect: Failure to establish controls for adherence with the Uniform Guidance for allowable costs may result in unallowed costs charged to the program. Questioned costs: Unknown. Recommendation: Strengthen controls to require time and effort reporting of actual time incurred for all salaries and wages charged to federal programs. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-002
Finding #2023-002 – Material Weakness. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24. Contract number: 215280587110020. Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None. Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Criteria: Allowable costs – Same as finding #2023-001. Condition and context: Same as finding #2023-001. Cause: Same as finding #2023-001. Effect: Same as finding #2023-001. Questioned costs: Unknown. Recommendation: Same as finding #2023-001. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-003
Finding #2023-003 – Material Weakness and Material Noncompliance. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24, Contract number: 215280587110020. Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None, Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Criteria: Allowable costs – The Uniform Guidance, Subpart E Cost Principles, requires that charges to federal awards for salaries and wages be based on records that accurately reflect work performed and support the distribution of an employee’s salary or wages among specific activities or cost objectives, which includes being supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition and context: In a sample of 30 payroll transactions, 7 did not have timesheets to support the allocation of salary costs charged to the major program; however, 1 of the 7 was charged 100% to the award. Further investigation revealed that Boys and Girls Clubs did not require time and effort reporting for program management personnel whose time charged to the awards totaled approximately $245,000. Cause: A lack of understanding that all time charged to the award must be supported by time and effort reporting. Effect: Failure to establish controls for adherence with the Uniform Guidance for allowable costs may result in unallowed costs charged to the program. Questioned costs: Unknown. Recommendation: Strengthen controls to require time and effort reporting of actual time incurred for all salaries and wages charged to federal programs. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-002
Finding #2023-002 – Material Weakness. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24. Contract number: 215280587110020. Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None. Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Criteria: Allowable costs – Same as finding #2023-001. Condition and context: Same as finding #2023-001. Cause: Same as finding #2023-001. Effect: Same as finding #2023-001. Questioned costs: Unknown. Recommendation: Same as finding #2023-001. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-003
Finding #2023-003 – Material Weakness and Material Noncompliance. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24, Contract number: 215280587110020. Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None, Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Criteria: Allowable costs – The Uniform Guidance, Subpart E Cost Principles, requires that charges to federal awards for salaries and wages be based on records that accurately reflect work performed and support the distribution of an employee’s salary or wages among specific activities or cost objectives, which includes being supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition and context: In a sample of 30 payroll transactions, 7 did not have timesheets to support the allocation of salary costs charged to the major program; however, 1 of the 7 was charged 100% to the award. Further investigation revealed that Boys and Girls Clubs did not require time and effort reporting for program management personnel whose time charged to the awards totaled approximately $245,000. Cause: A lack of understanding that all time charged to the award must be supported by time and effort reporting. Effect: Failure to establish controls for adherence with the Uniform Guidance for allowable costs may result in unallowed costs charged to the program. Questioned costs: Unknown. Recommendation: Strengthen controls to require time and effort reporting of actual time incurred for all salaries and wages charged to federal programs. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-002
Finding #2023-002 – Material Weakness. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24. Contract number: 215280587110020. Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None. Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Criteria: Allowable costs – Same as finding #2023-001. Condition and context: Same as finding #2023-001. Cause: Same as finding #2023-001. Effect: Same as finding #2023-001. Questioned costs: Unknown. Recommendation: Same as finding #2023-001. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-003
Finding #2023-003 – Material Weakness and Material Noncompliance. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24, Contract number: 215280587110020. Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None, Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Criteria: Allowable costs – The Uniform Guidance, Subpart E Cost Principles, requires that charges to federal awards for salaries and wages be based on records that accurately reflect work performed and support the distribution of an employee’s salary or wages among specific activities or cost objectives, which includes being supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition and context: In a sample of 30 payroll transactions, 7 did not have timesheets to support the allocation of salary costs charged to the major program; however, 1 of the 7 was charged 100% to the award. Further investigation revealed that Boys and Girls Clubs did not require time and effort reporting for program management personnel whose time charged to the awards totaled approximately $245,000. Cause: A lack of understanding that all time charged to the award must be supported by time and effort reporting. Effect: Failure to establish controls for adherence with the Uniform Guidance for allowable costs may result in unallowed costs charged to the program. Questioned costs: Unknown. Recommendation: Strengthen controls to require time and effort reporting of actual time incurred for all salaries and wages charged to federal programs. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-002
Finding #2023-002 – Material Weakness. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24. Contract number: 215280587110020. Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None. Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Criteria: Allowable costs – Same as finding #2023-001. Condition and context: Same as finding #2023-001. Cause: Same as finding #2023-001. Effect: Same as finding #2023-001. Questioned costs: Unknown. Recommendation: Same as finding #2023-001. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-003
Finding #2023-003 – Material Weakness and Material Noncompliance. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24, Contract number: 215280587110020. Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None, Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Criteria: Allowable costs – The Uniform Guidance, Subpart E Cost Principles, requires that charges to federal awards for salaries and wages be based on records that accurately reflect work performed and support the distribution of an employee’s salary or wages among specific activities or cost objectives, which includes being supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition and context: In a sample of 30 payroll transactions, 7 did not have timesheets to support the allocation of salary costs charged to the major program; however, 1 of the 7 was charged 100% to the award. Further investigation revealed that Boys and Girls Clubs did not require time and effort reporting for program management personnel whose time charged to the awards totaled approximately $245,000. Cause: A lack of understanding that all time charged to the award must be supported by time and effort reporting. Effect: Failure to establish controls for adherence with the Uniform Guidance for allowable costs may result in unallowed costs charged to the program. Questioned costs: Unknown. Recommendation: Strengthen controls to require time and effort reporting of actual time incurred for all salaries and wages charged to federal programs. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-002
Finding #2023-002 – Material Weakness. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24. Contract number: 215280587110020. Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None. Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Criteria: Allowable costs – Same as finding #2023-001. Condition and context: Same as finding #2023-001. Cause: Same as finding #2023-001. Effect: Same as finding #2023-001. Questioned costs: Unknown. Recommendation: Same as finding #2023-001. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-003
Finding #2023-003 – Material Weakness and Material Noncompliance. Applicable federal program: U. S. Department of Education, COVID-19 – Education Stabilization Fund, Assistance Listing #84.425U, Passed through Texas Education Agency, Contract period: 01/31/22 – 05/31/24, Contract number: 215280587110020. Passed through Lamar Consolidated Independent School District, Contract period: 09/01/22 – 06/30/24, Contract number: None, Passed through Wharton Independent School District, Contract period: 01/01/22 – 06/30/24, Contract number: None. Criteria: Allowable costs – The Uniform Guidance, Subpart E Cost Principles, requires that charges to federal awards for salaries and wages be based on records that accurately reflect work performed and support the distribution of an employee’s salary or wages among specific activities or cost objectives, which includes being supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition and context: In a sample of 30 payroll transactions, 7 did not have timesheets to support the allocation of salary costs charged to the major program; however, 1 of the 7 was charged 100% to the award. Further investigation revealed that Boys and Girls Clubs did not require time and effort reporting for program management personnel whose time charged to the awards totaled approximately $245,000. Cause: A lack of understanding that all time charged to the award must be supported by time and effort reporting. Effect: Failure to establish controls for adherence with the Uniform Guidance for allowable costs may result in unallowed costs charged to the program. Questioned costs: Unknown. Recommendation: Strengthen controls to require time and effort reporting of actual time incurred for all salaries and wages charged to federal programs. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.