FAC Explorer

Audit 329209

FY End
2023-12-31
Total Expended
$3.03M
Findings
10
Programs
2
Organization: Massachusetts Alliance of Boys & Girls Clubs, Inc. (GA)
Year: 2023 Accepted: 2024-11-20
Auditor: Warren Averett LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
509615 2023-001 - - L
509616 2023-001 - - L
509617 2023-002 - - M
509618 2023-003 Significant Deficiency Yes M
509619 2023-004 Significant Deficiency - L
1086057 2023-001 - - L
1086058 2023-001 - - L
1086059 2023-002 - - M
1086060 2023-003 Significant Deficiency Yes M
1086061 2023-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $2.99M Yes 4
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $42,873 - 1

Contacts

Name Title Type
UTKJRB584L45 Sam Unglo Auditee
4044875410 Jennifer Williams Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation 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: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Massachusetts Alliance of Boys & Girls Clubs, Inc. (the “Organization”) under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Summary of Significant Accounting Policies 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: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. 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.
Title: Contingency 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: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The grant revenue amounts received are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the Organization. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal laws and regulations.
Title: Indirect Cost Rate 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: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Federal Program Information: Education Stabilization Fund (ALN 84.425U), Research and Development Cluster (ALN 93.847) Criteria: Non-federal entities must follow the compliance audit standards set forth in 2 CFR 200.500 through 521, which states that any non-federal entity that expends $750,000 or more during the nonfederal entity's fiscal year in federal awards must have a compliance audit conducted for that year. Per 2 CFR 200.512, the audit must be completed and the reporting package and data collection form must be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditors' report, or nine months after the end of the audit period. Condition: The Alliance did not file its single audit report by the required deadline. Cause: Untimely completion of audit. Effect or Potential Effect: The Alliance was not in compliance with the reporting requirements outlined in the agreement and in 2 CFR 200.500 through 521. Recommendation: We recommend that the Alliance implement procedures to ensure timely completion and submission of future single audits. Views of Responsible Officials: The Alliance will implement more administrative oversight with respect to reporting requirements and deadlines to make sure all audits are completed timely.
Finding 2023-001
Federal Program Information: Education Stabilization Fund (ALN 84.425U), Research and Development Cluster (ALN 93.847) Criteria: Non-federal entities must follow the compliance audit standards set forth in 2 CFR 200.500 through 521, which states that any non-federal entity that expends $750,000 or more during the nonfederal entity's fiscal year in federal awards must have a compliance audit conducted for that year. Per 2 CFR 200.512, the audit must be completed and the reporting package and data collection form must be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditors' report, or nine months after the end of the audit period. Condition: The Alliance did not file its single audit report by the required deadline. Cause: Untimely completion of audit. Effect or Potential Effect: The Alliance was not in compliance with the reporting requirements outlined in the agreement and in 2 CFR 200.500 through 521. Recommendation: We recommend that the Alliance implement procedures to ensure timely completion and submission of future single audits. Views of Responsible Officials: The Alliance will implement more administrative oversight with respect to reporting requirements and deadlines to make sure all audits are completed timely.
Finding 2023-002
Federal Program Information: Education Stabilization Fund (ALN 84.425U) Criteria: The Code of Federal Regulations (CFR) Section 200.332 requires the pass-through entity (PTE) to clearly identify to the subrecipient: (1) the award as a subaward at the time of subaward (or subsequent subaward modification) by providing the information described in 2 CFR section 200.332(a)(1); (2) all requirements imposed by the PTE on the subrecipient so that the federal award is used in accordance with federal statutes, regulations, and the terms and conditions of the award (2 CFR section Massachusetts Alliance of Boys & Girls Clubs, Inc. Schedule of Findings and Questioned Costs For the Year Ended December 31, 2023 26 200.332(a)(2)); and (3) any additional requirements that the PTE imposes on the subrecipient in order for the PTE to meet its own responsibility for the federal award (e.g., financial, performance, and special reports) (2 CFR section 200.332(a)(3)). Condition: The subaward agreements did not include the required federal provisions. Cause: The Alliance was unaware of the requirement to include the required federal provisions in the subaward agreements. Effect or Potential Effect: The Alliance was not in compliance with the subrecipient requirements outlined in the agreement and in 2CFR200.332. Recommendation: We recommend that the Alliance update subaward agreements to include all federal provisions required to be communicated by the grant and also 2 CFR 200.332. Views of Responsible Officials: The Alliance will implement internal controls and administrative oversight to ensure subrecipient monitoring requirements are being followed and adequately documented.
Finding 2023-003
Federal Program Information: Education Stabilization Fund (ALN 84.425U) Criteria: M. Subrecipient Monitoring - The Subgrantee shall ensure its monitoring methods provide reasonable assurance that the subrecipient used the subaward for authorized purposes in compliance with federal statutes, regulations, and the terms and conditions of the subaward. Condition: Supporting documentation for certain subrecipient invoices was not reviewed by the Organization. Cause: Insufficient internal control and administrative oversight. Effect or Potential Effect: The Alliance was not in compliance with subrecipient monitoring requirements. Questioned Costs: None Context: For 16 of 16 subrecipient invoices selected for testing, the Organization did not have evidence of review of source documentation from the subaward recipient. Recommendation: We recommend the Organization enhance its procedures and internal controls over subrecipient monitoring to ensure local club invoices are properly reviewed. Identification as a Repeat Finding: There was a similar finding identified in prior year. Views of Responsible Officials: The Alliance will enhance its procedures and internal controls over subrecipient monitoring to ensure that evidence of proper review of local club invoices is maintained.
Finding 2023-004
Federal Program Information: Education Stabilization Fund (ALN 84.425U) Criteria: L. Reporting- The auditee must prepare a schedule of expenditures of Federal awards (the “SEFA”) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502 Basis for determining Federal awards expended. Condition: During our audit of the financial statements for the fiscal year ending December 31, 2023, we identified that the SEFA was not prepared in accordance with the requirements set forth by the Uniform Guidance (2 CFR Part 200) and was incomplete. Cause: Insufficient internal control and administrative oversight. Effect or Potential Effect: As a result of the incorrect preparation, the SEFA did not accurately reflect the Federal awards expended during the fiscal year. This could potentially lead to non-compliance with Federal requirements and affect the accuracy of the financial statements. Recommendation: We recommend that the entity implement the following corrective actions: 1. Provide training to the staff responsible for preparing the SEFA to ensure they understand the requirements of the Uniform Guidance. 2. Establish a review process to verify the accuracy and completeness of the SEFA before submission. 3. Utilize a checklist or other tools to ensure all required information is included in the SEFA. Views of Responsible Officials: The Alliance will implement more stringent internal controls and administrative oversight with respect to preparation and review of the SEFA.
Finding 2023-001
Federal Program Information: Education Stabilization Fund (ALN 84.425U), Research and Development Cluster (ALN 93.847) Criteria: Non-federal entities must follow the compliance audit standards set forth in 2 CFR 200.500 through 521, which states that any non-federal entity that expends $750,000 or more during the nonfederal entity's fiscal year in federal awards must have a compliance audit conducted for that year. Per 2 CFR 200.512, the audit must be completed and the reporting package and data collection form must be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditors' report, or nine months after the end of the audit period. Condition: The Alliance did not file its single audit report by the required deadline. Cause: Untimely completion of audit. Effect or Potential Effect: The Alliance was not in compliance with the reporting requirements outlined in the agreement and in 2 CFR 200.500 through 521. Recommendation: We recommend that the Alliance implement procedures to ensure timely completion and submission of future single audits. Views of Responsible Officials: The Alliance will implement more administrative oversight with respect to reporting requirements and deadlines to make sure all audits are completed timely.
Finding 2023-001
Federal Program Information: Education Stabilization Fund (ALN 84.425U), Research and Development Cluster (ALN 93.847) Criteria: Non-federal entities must follow the compliance audit standards set forth in 2 CFR 200.500 through 521, which states that any non-federal entity that expends $750,000 or more during the nonfederal entity's fiscal year in federal awards must have a compliance audit conducted for that year. Per 2 CFR 200.512, the audit must be completed and the reporting package and data collection form must be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditors' report, or nine months after the end of the audit period. Condition: The Alliance did not file its single audit report by the required deadline. Cause: Untimely completion of audit. Effect or Potential Effect: The Alliance was not in compliance with the reporting requirements outlined in the agreement and in 2 CFR 200.500 through 521. Recommendation: We recommend that the Alliance implement procedures to ensure timely completion and submission of future single audits. Views of Responsible Officials: The Alliance will implement more administrative oversight with respect to reporting requirements and deadlines to make sure all audits are completed timely.
Finding 2023-002
Federal Program Information: Education Stabilization Fund (ALN 84.425U) Criteria: The Code of Federal Regulations (CFR) Section 200.332 requires the pass-through entity (PTE) to clearly identify to the subrecipient: (1) the award as a subaward at the time of subaward (or subsequent subaward modification) by providing the information described in 2 CFR section 200.332(a)(1); (2) all requirements imposed by the PTE on the subrecipient so that the federal award is used in accordance with federal statutes, regulations, and the terms and conditions of the award (2 CFR section Massachusetts Alliance of Boys & Girls Clubs, Inc. Schedule of Findings and Questioned Costs For the Year Ended December 31, 2023 26 200.332(a)(2)); and (3) any additional requirements that the PTE imposes on the subrecipient in order for the PTE to meet its own responsibility for the federal award (e.g., financial, performance, and special reports) (2 CFR section 200.332(a)(3)). Condition: The subaward agreements did not include the required federal provisions. Cause: The Alliance was unaware of the requirement to include the required federal provisions in the subaward agreements. Effect or Potential Effect: The Alliance was not in compliance with the subrecipient requirements outlined in the agreement and in 2CFR200.332. Recommendation: We recommend that the Alliance update subaward agreements to include all federal provisions required to be communicated by the grant and also 2 CFR 200.332. Views of Responsible Officials: The Alliance will implement internal controls and administrative oversight to ensure subrecipient monitoring requirements are being followed and adequately documented.
Finding 2023-003
Federal Program Information: Education Stabilization Fund (ALN 84.425U) Criteria: M. Subrecipient Monitoring - The Subgrantee shall ensure its monitoring methods provide reasonable assurance that the subrecipient used the subaward for authorized purposes in compliance with federal statutes, regulations, and the terms and conditions of the subaward. Condition: Supporting documentation for certain subrecipient invoices was not reviewed by the Organization. Cause: Insufficient internal control and administrative oversight. Effect or Potential Effect: The Alliance was not in compliance with subrecipient monitoring requirements. Questioned Costs: None Context: For 16 of 16 subrecipient invoices selected for testing, the Organization did not have evidence of review of source documentation from the subaward recipient. Recommendation: We recommend the Organization enhance its procedures and internal controls over subrecipient monitoring to ensure local club invoices are properly reviewed. Identification as a Repeat Finding: There was a similar finding identified in prior year. Views of Responsible Officials: The Alliance will enhance its procedures and internal controls over subrecipient monitoring to ensure that evidence of proper review of local club invoices is maintained.
Finding 2023-004
Federal Program Information: Education Stabilization Fund (ALN 84.425U) Criteria: L. Reporting- The auditee must prepare a schedule of expenditures of Federal awards (the “SEFA”) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502 Basis for determining Federal awards expended. Condition: During our audit of the financial statements for the fiscal year ending December 31, 2023, we identified that the SEFA was not prepared in accordance with the requirements set forth by the Uniform Guidance (2 CFR Part 200) and was incomplete. Cause: Insufficient internal control and administrative oversight. Effect or Potential Effect: As a result of the incorrect preparation, the SEFA did not accurately reflect the Federal awards expended during the fiscal year. This could potentially lead to non-compliance with Federal requirements and affect the accuracy of the financial statements. Recommendation: We recommend that the entity implement the following corrective actions: 1. Provide training to the staff responsible for preparing the SEFA to ensure they understand the requirements of the Uniform Guidance. 2. Establish a review process to verify the accuracy and completeness of the SEFA before submission. 3. Utilize a checklist or other tools to ensure all required information is included in the SEFA. Views of Responsible Officials: The Alliance will implement more stringent internal controls and administrative oversight with respect to preparation and review of the SEFA.