Audit 331664

FY End
2024-06-30
Total Expended
$1.30M
Findings
12
Programs
11
Year: 2024 Accepted: 2024-12-10

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
513752 2024-001 Significant Deficiency - AB
513753 2024-001 Significant Deficiency - AB
513754 2024-001 Significant Deficiency - AB
513755 2024-001 Significant Deficiency - AB
513756 2024-001 Significant Deficiency - AB
513757 2024-001 Significant Deficiency - AB
1090194 2024-001 Significant Deficiency - AB
1090195 2024-001 Significant Deficiency - AB
1090196 2024-001 Significant Deficiency - AB
1090197 2024-001 Significant Deficiency - AB
1090198 2024-001 Significant Deficiency - AB
1090199 2024-001 Significant Deficiency - AB

Contacts

Name Title Type
VZYXYENS7KC6 Derek Heim Auditee
5088123119 Jennifer Olivier Auditor
No contacts on file

Notes to SEFA

Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule), includes the federal award activity of Boys and Girls Clubs of Metro South, Inc. under programs of the federal government for the year ended June 30, 2024. The information in this schedule is presented in accordance with the requirements of 2 CFR 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 Boys and Girls Clubs of Metro South, Inc., it is not intended to and does not present the combined financial position, changes in net assets, or cash flows of Boys and Girls Clubs of Metro South, Inc. SUMMARY OF SIGNIFICANT 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years, if applicable. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Boys and Girls Clubs of Metro South, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Child Care and Development Fund Cluster and Temporary Assistance for Needy Families Assistance Listing Numbers: 93.575 / 93.596 / 93.558 Federal Award Identification Number and Year: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Pass-Through Agencies: Commonwealth of Massachusetts, Department of Early Education/ People Acting in Community Endeavors, Inc. Pass-Through Number: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our audit of the financial statements for the year ended June 30, 2024, we identified a significant deficiency in the organization’s internal controls within the payroll processing procedures. Specifically, adjustments and approvals to payroll data were made after the payroll was transmitted to the third-party processor for payment. The adjusted information was not transmitted for processing. Criteria or specific requirement: Processes should be in place to payroll information is properly reviewed and approved prior to transmitting for payment. Effective internal controls should be in place to ensure the payroll data is complete and accurate. Effect: During testing of sample of 40, it was noted that one employee’s time card did not agree to the amount transmitted for payroll. As a result, the employee was paid $107 more in error. The sample was expanded to 60 and no additional instances were noted. Further review of the payroll processing timing resulted in a total of 6 identified errors in time transmitted and a total error of $547 in payroll expense due to the issue. Cause: There were personnel changes in the department and the person charged with the transmittal of payroll information did not capture all approved adjustments prior to transmitting. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The organization should ensure personnel overseeing the payroll process are appropriately trained. In addition, we recommend that the entity add an additional level of review to ensure such errors do not repeat. Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has initiated corrective actions to address the finding. Steps being taken include:  Restructured the department to ensure the personnel have appropriate skills and knowledge in the processing of payroll  Payroll information transmitted is reviewed by the CFO on a regular basis.
Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Child Care and Development Fund Cluster and Temporary Assistance for Needy Families Assistance Listing Numbers: 93.575 / 93.596 / 93.558 Federal Award Identification Number and Year: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Pass-Through Agencies: Commonwealth of Massachusetts, Department of Early Education/ People Acting in Community Endeavors, Inc. Pass-Through Number: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our audit of the financial statements for the year ended June 30, 2024, we identified a significant deficiency in the organization’s internal controls within the payroll processing procedures. Specifically, adjustments and approvals to payroll data were made after the payroll was transmitted to the third-party processor for payment. The adjusted information was not transmitted for processing. Criteria or specific requirement: Processes should be in place to payroll information is properly reviewed and approved prior to transmitting for payment. Effective internal controls should be in place to ensure the payroll data is complete and accurate. Effect: During testing of sample of 40, it was noted that one employee’s time card did not agree to the amount transmitted for payroll. As a result, the employee was paid $107 more in error. The sample was expanded to 60 and no additional instances were noted. Further review of the payroll processing timing resulted in a total of 6 identified errors in time transmitted and a total error of $547 in payroll expense due to the issue. Cause: There were personnel changes in the department and the person charged with the transmittal of payroll information did not capture all approved adjustments prior to transmitting. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The organization should ensure personnel overseeing the payroll process are appropriately trained. In addition, we recommend that the entity add an additional level of review to ensure such errors do not repeat. Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has initiated corrective actions to address the finding. Steps being taken include:  Restructured the department to ensure the personnel have appropriate skills and knowledge in the processing of payroll  Payroll information transmitted is reviewed by the CFO on a regular basis.
Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Child Care and Development Fund Cluster and Temporary Assistance for Needy Families Assistance Listing Numbers: 93.575 / 93.596 / 93.558 Federal Award Identification Number and Year: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Pass-Through Agencies: Commonwealth of Massachusetts, Department of Early Education/ People Acting in Community Endeavors, Inc. Pass-Through Number: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our audit of the financial statements for the year ended June 30, 2024, we identified a significant deficiency in the organization’s internal controls within the payroll processing procedures. Specifically, adjustments and approvals to payroll data were made after the payroll was transmitted to the third-party processor for payment. The adjusted information was not transmitted for processing. Criteria or specific requirement: Processes should be in place to payroll information is properly reviewed and approved prior to transmitting for payment. Effective internal controls should be in place to ensure the payroll data is complete and accurate. Effect: During testing of sample of 40, it was noted that one employee’s time card did not agree to the amount transmitted for payroll. As a result, the employee was paid $107 more in error. The sample was expanded to 60 and no additional instances were noted. Further review of the payroll processing timing resulted in a total of 6 identified errors in time transmitted and a total error of $547 in payroll expense due to the issue. Cause: There were personnel changes in the department and the person charged with the transmittal of payroll information did not capture all approved adjustments prior to transmitting. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The organization should ensure personnel overseeing the payroll process are appropriately trained. In addition, we recommend that the entity add an additional level of review to ensure such errors do not repeat. Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has initiated corrective actions to address the finding. Steps being taken include:  Restructured the department to ensure the personnel have appropriate skills and knowledge in the processing of payroll  Payroll information transmitted is reviewed by the CFO on a regular basis.
Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Child Care and Development Fund Cluster and Temporary Assistance for Needy Families Assistance Listing Numbers: 93.575 / 93.596 / 93.558 Federal Award Identification Number and Year: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Pass-Through Agencies: Commonwealth of Massachusetts, Department of Early Education/ People Acting in Community Endeavors, Inc. Pass-Through Number: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our audit of the financial statements for the year ended June 30, 2024, we identified a significant deficiency in the organization’s internal controls within the payroll processing procedures. Specifically, adjustments and approvals to payroll data were made after the payroll was transmitted to the third-party processor for payment. The adjusted information was not transmitted for processing. Criteria or specific requirement: Processes should be in place to payroll information is properly reviewed and approved prior to transmitting for payment. Effective internal controls should be in place to ensure the payroll data is complete and accurate. Effect: During testing of sample of 40, it was noted that one employee’s time card did not agree to the amount transmitted for payroll. As a result, the employee was paid $107 more in error. The sample was expanded to 60 and no additional instances were noted. Further review of the payroll processing timing resulted in a total of 6 identified errors in time transmitted and a total error of $547 in payroll expense due to the issue. Cause: There were personnel changes in the department and the person charged with the transmittal of payroll information did not capture all approved adjustments prior to transmitting. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The organization should ensure personnel overseeing the payroll process are appropriately trained. In addition, we recommend that the entity add an additional level of review to ensure such errors do not repeat. Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has initiated corrective actions to address the finding. Steps being taken include:  Restructured the department to ensure the personnel have appropriate skills and knowledge in the processing of payroll  Payroll information transmitted is reviewed by the CFO on a regular basis.
Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Child Care and Development Fund Cluster and Temporary Assistance for Needy Families Assistance Listing Numbers: 93.575 / 93.596 / 93.558 Federal Award Identification Number and Year: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Pass-Through Agencies: Commonwealth of Massachusetts, Department of Early Education/ People Acting in Community Endeavors, Inc. Pass-Through Number: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our audit of the financial statements for the year ended June 30, 2024, we identified a significant deficiency in the organization’s internal controls within the payroll processing procedures. Specifically, adjustments and approvals to payroll data were made after the payroll was transmitted to the third-party processor for payment. The adjusted information was not transmitted for processing. Criteria or specific requirement: Processes should be in place to payroll information is properly reviewed and approved prior to transmitting for payment. Effective internal controls should be in place to ensure the payroll data is complete and accurate. Effect: During testing of sample of 40, it was noted that one employee’s time card did not agree to the amount transmitted for payroll. As a result, the employee was paid $107 more in error. The sample was expanded to 60 and no additional instances were noted. Further review of the payroll processing timing resulted in a total of 6 identified errors in time transmitted and a total error of $547 in payroll expense due to the issue. Cause: There were personnel changes in the department and the person charged with the transmittal of payroll information did not capture all approved adjustments prior to transmitting. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The organization should ensure personnel overseeing the payroll process are appropriately trained. In addition, we recommend that the entity add an additional level of review to ensure such errors do not repeat. Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has initiated corrective actions to address the finding. Steps being taken include:  Restructured the department to ensure the personnel have appropriate skills and knowledge in the processing of payroll  Payroll information transmitted is reviewed by the CFO on a regular basis.
Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Child Care and Development Fund Cluster and Temporary Assistance for Needy Families Assistance Listing Numbers: 93.575 / 93.596 / 93.558 Federal Award Identification Number and Year: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Pass-Through Agencies: Commonwealth of Massachusetts, Department of Early Education/ People Acting in Community Endeavors, Inc. Pass-Through Number: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our audit of the financial statements for the year ended June 30, 2024, we identified a significant deficiency in the organization’s internal controls within the payroll processing procedures. Specifically, adjustments and approvals to payroll data were made after the payroll was transmitted to the third-party processor for payment. The adjusted information was not transmitted for processing. Criteria or specific requirement: Processes should be in place to payroll information is properly reviewed and approved prior to transmitting for payment. Effective internal controls should be in place to ensure the payroll data is complete and accurate. Effect: During testing of sample of 40, it was noted that one employee’s time card did not agree to the amount transmitted for payroll. As a result, the employee was paid $107 more in error. The sample was expanded to 60 and no additional instances were noted. Further review of the payroll processing timing resulted in a total of 6 identified errors in time transmitted and a total error of $547 in payroll expense due to the issue. Cause: There were personnel changes in the department and the person charged with the transmittal of payroll information did not capture all approved adjustments prior to transmitting. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The organization should ensure personnel overseeing the payroll process are appropriately trained. In addition, we recommend that the entity add an additional level of review to ensure such errors do not repeat. Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has initiated corrective actions to address the finding. Steps being taken include:  Restructured the department to ensure the personnel have appropriate skills and knowledge in the processing of payroll  Payroll information transmitted is reviewed by the CFO on a regular basis.
Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Child Care and Development Fund Cluster and Temporary Assistance for Needy Families Assistance Listing Numbers: 93.575 / 93.596 / 93.558 Federal Award Identification Number and Year: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Pass-Through Agencies: Commonwealth of Massachusetts, Department of Early Education/ People Acting in Community Endeavors, Inc. Pass-Through Number: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our audit of the financial statements for the year ended June 30, 2024, we identified a significant deficiency in the organization’s internal controls within the payroll processing procedures. Specifically, adjustments and approvals to payroll data were made after the payroll was transmitted to the third-party processor for payment. The adjusted information was not transmitted for processing. Criteria or specific requirement: Processes should be in place to payroll information is properly reviewed and approved prior to transmitting for payment. Effective internal controls should be in place to ensure the payroll data is complete and accurate. Effect: During testing of sample of 40, it was noted that one employee’s time card did not agree to the amount transmitted for payroll. As a result, the employee was paid $107 more in error. The sample was expanded to 60 and no additional instances were noted. Further review of the payroll processing timing resulted in a total of 6 identified errors in time transmitted and a total error of $547 in payroll expense due to the issue. Cause: There were personnel changes in the department and the person charged with the transmittal of payroll information did not capture all approved adjustments prior to transmitting. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The organization should ensure personnel overseeing the payroll process are appropriately trained. In addition, we recommend that the entity add an additional level of review to ensure such errors do not repeat. Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has initiated corrective actions to address the finding. Steps being taken include:  Restructured the department to ensure the personnel have appropriate skills and knowledge in the processing of payroll  Payroll information transmitted is reviewed by the CFO on a regular basis.
Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Child Care and Development Fund Cluster and Temporary Assistance for Needy Families Assistance Listing Numbers: 93.575 / 93.596 / 93.558 Federal Award Identification Number and Year: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Pass-Through Agencies: Commonwealth of Massachusetts, Department of Early Education/ People Acting in Community Endeavors, Inc. Pass-Through Number: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our audit of the financial statements for the year ended June 30, 2024, we identified a significant deficiency in the organization’s internal controls within the payroll processing procedures. Specifically, adjustments and approvals to payroll data were made after the payroll was transmitted to the third-party processor for payment. The adjusted information was not transmitted for processing. Criteria or specific requirement: Processes should be in place to payroll information is properly reviewed and approved prior to transmitting for payment. Effective internal controls should be in place to ensure the payroll data is complete and accurate. Effect: During testing of sample of 40, it was noted that one employee’s time card did not agree to the amount transmitted for payroll. As a result, the employee was paid $107 more in error. The sample was expanded to 60 and no additional instances were noted. Further review of the payroll processing timing resulted in a total of 6 identified errors in time transmitted and a total error of $547 in payroll expense due to the issue. Cause: There were personnel changes in the department and the person charged with the transmittal of payroll information did not capture all approved adjustments prior to transmitting. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The organization should ensure personnel overseeing the payroll process are appropriately trained. In addition, we recommend that the entity add an additional level of review to ensure such errors do not repeat. Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has initiated corrective actions to address the finding. Steps being taken include:  Restructured the department to ensure the personnel have appropriate skills and knowledge in the processing of payroll  Payroll information transmitted is reviewed by the CFO on a regular basis.
Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Child Care and Development Fund Cluster and Temporary Assistance for Needy Families Assistance Listing Numbers: 93.575 / 93.596 / 93.558 Federal Award Identification Number and Year: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Pass-Through Agencies: Commonwealth of Massachusetts, Department of Early Education/ People Acting in Community Endeavors, Inc. Pass-Through Number: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our audit of the financial statements for the year ended June 30, 2024, we identified a significant deficiency in the organization’s internal controls within the payroll processing procedures. Specifically, adjustments and approvals to payroll data were made after the payroll was transmitted to the third-party processor for payment. The adjusted information was not transmitted for processing. Criteria or specific requirement: Processes should be in place to payroll information is properly reviewed and approved prior to transmitting for payment. Effective internal controls should be in place to ensure the payroll data is complete and accurate. Effect: During testing of sample of 40, it was noted that one employee’s time card did not agree to the amount transmitted for payroll. As a result, the employee was paid $107 more in error. The sample was expanded to 60 and no additional instances were noted. Further review of the payroll processing timing resulted in a total of 6 identified errors in time transmitted and a total error of $547 in payroll expense due to the issue. Cause: There were personnel changes in the department and the person charged with the transmittal of payroll information did not capture all approved adjustments prior to transmitting. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The organization should ensure personnel overseeing the payroll process are appropriately trained. In addition, we recommend that the entity add an additional level of review to ensure such errors do not repeat. Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has initiated corrective actions to address the finding. Steps being taken include:  Restructured the department to ensure the personnel have appropriate skills and knowledge in the processing of payroll  Payroll information transmitted is reviewed by the CFO on a regular basis.
Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Child Care and Development Fund Cluster and Temporary Assistance for Needy Families Assistance Listing Numbers: 93.575 / 93.596 / 93.558 Federal Award Identification Number and Year: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Pass-Through Agencies: Commonwealth of Massachusetts, Department of Early Education/ People Acting in Community Endeavors, Inc. Pass-Through Number: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our audit of the financial statements for the year ended June 30, 2024, we identified a significant deficiency in the organization’s internal controls within the payroll processing procedures. Specifically, adjustments and approvals to payroll data were made after the payroll was transmitted to the third-party processor for payment. The adjusted information was not transmitted for processing. Criteria or specific requirement: Processes should be in place to payroll information is properly reviewed and approved prior to transmitting for payment. Effective internal controls should be in place to ensure the payroll data is complete and accurate. Effect: During testing of sample of 40, it was noted that one employee’s time card did not agree to the amount transmitted for payroll. As a result, the employee was paid $107 more in error. The sample was expanded to 60 and no additional instances were noted. Further review of the payroll processing timing resulted in a total of 6 identified errors in time transmitted and a total error of $547 in payroll expense due to the issue. Cause: There were personnel changes in the department and the person charged with the transmittal of payroll information did not capture all approved adjustments prior to transmitting. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The organization should ensure personnel overseeing the payroll process are appropriately trained. In addition, we recommend that the entity add an additional level of review to ensure such errors do not repeat. Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has initiated corrective actions to address the finding. Steps being taken include:  Restructured the department to ensure the personnel have appropriate skills and knowledge in the processing of payroll  Payroll information transmitted is reviewed by the CFO on a regular basis.
Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Child Care and Development Fund Cluster and Temporary Assistance for Needy Families Assistance Listing Numbers: 93.575 / 93.596 / 93.558 Federal Award Identification Number and Year: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Pass-Through Agencies: Commonwealth of Massachusetts, Department of Early Education/ People Acting in Community Endeavors, Inc. Pass-Through Number: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our audit of the financial statements for the year ended June 30, 2024, we identified a significant deficiency in the organization’s internal controls within the payroll processing procedures. Specifically, adjustments and approvals to payroll data were made after the payroll was transmitted to the third-party processor for payment. The adjusted information was not transmitted for processing. Criteria or specific requirement: Processes should be in place to payroll information is properly reviewed and approved prior to transmitting for payment. Effective internal controls should be in place to ensure the payroll data is complete and accurate. Effect: During testing of sample of 40, it was noted that one employee’s time card did not agree to the amount transmitted for payroll. As a result, the employee was paid $107 more in error. The sample was expanded to 60 and no additional instances were noted. Further review of the payroll processing timing resulted in a total of 6 identified errors in time transmitted and a total error of $547 in payroll expense due to the issue. Cause: There were personnel changes in the department and the person charged with the transmittal of payroll information did not capture all approved adjustments prior to transmitting. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The organization should ensure personnel overseeing the payroll process are appropriately trained. In addition, we recommend that the entity add an additional level of review to ensure such errors do not repeat. Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has initiated corrective actions to address the finding. Steps being taken include:  Restructured the department to ensure the personnel have appropriate skills and knowledge in the processing of payroll  Payroll information transmitted is reviewed by the CFO on a regular basis.
Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Child Care and Development Fund Cluster and Temporary Assistance for Needy Families Assistance Listing Numbers: 93.575 / 93.596 / 93.558 Federal Award Identification Number and Year: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Pass-Through Agencies: Commonwealth of Massachusetts, Department of Early Education/ People Acting in Community Endeavors, Inc. Pass-Through Number: 2024PRIORPORSUPPMA01 / 10020BOYSANDGIR01SP Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our audit of the financial statements for the year ended June 30, 2024, we identified a significant deficiency in the organization’s internal controls within the payroll processing procedures. Specifically, adjustments and approvals to payroll data were made after the payroll was transmitted to the third-party processor for payment. The adjusted information was not transmitted for processing. Criteria or specific requirement: Processes should be in place to payroll information is properly reviewed and approved prior to transmitting for payment. Effective internal controls should be in place to ensure the payroll data is complete and accurate. Effect: During testing of sample of 40, it was noted that one employee’s time card did not agree to the amount transmitted for payroll. As a result, the employee was paid $107 more in error. The sample was expanded to 60 and no additional instances were noted. Further review of the payroll processing timing resulted in a total of 6 identified errors in time transmitted and a total error of $547 in payroll expense due to the issue. Cause: There were personnel changes in the department and the person charged with the transmittal of payroll information did not capture all approved adjustments prior to transmitting. Repeat Finding: The finding is not a repeat of a finding in the immediately prior year. Recommendation: The organization should ensure personnel overseeing the payroll process are appropriately trained. In addition, we recommend that the entity add an additional level of review to ensure such errors do not repeat. Views of responsible officials and planned corrective actions: Management is in agreement with the finding and has initiated corrective actions to address the finding. Steps being taken include:  Restructured the department to ensure the personnel have appropriate skills and knowledge in the processing of payroll  Payroll information transmitted is reviewed by the CFO on a regular basis.