Audit 55387

2022-001 ? Significant Deficiency in Internal Control over Financial Reporting and Compliance over Allowable Costs/Cost Principles ? Payroll Allocations * ALN and Title: 84.287 Twenty-First Century Community Learning Centers * Award Number: S287C200002 * Award Year: July 1, 2021 through June 30, 2022 * Criteria: Per 2 CFR 200.303, Internal Controls, a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. * Condition: During the year the control that was designed failed to ensure that proper allocation based on actual hours worked were applied to the grant. * Cause: The internal control system did not have a sufficient control process in place to ensure all payroll expenses are properly reviewed for errors and approved prior to allocation and charge outs to grants being made. * Effect or potential effect: The Organization received reimbursement for ineligible labor expenses. * Recommendation: We recommend the Organization review and revise its current internal control procedures to ensure all employee wage allocations for grant charge outs are reviewed and agreed to actual hours worked per timesheets. * View of Responsible Officials: Please refer to Correction Action Plan * Questioned Costs - None, once the issue was identified during the allowable cost testwork, Boys and Girls Club of the Kenai Peninsula made the proper corrections to exclude those wages that weren?t actual worked within the program and included wages that were allowable. The remaining unallowable costs were then evaluated and were below both known and likely questioned costs threshold

2022-001 ? Significant Deficiency in Internal Control over Financial Reporting and Compliance over Allowable Costs/Cost Principles ? Payroll Allocations * ALN and Title: 84.287 Twenty-First Century Community Learning Centers * Award Number: S287C200002 * Award Year: July 1, 2021 through June 30, 2022 * Criteria: Per 2 CFR 200.303, Internal Controls, a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. * Condition: During the year the control that was designed failed to ensure that proper allocation based on actual hours worked were applied to the grant. * Cause: The internal control system did not have a sufficient control process in place to ensure all payroll expenses are properly reviewed for errors and approved prior to allocation and charge outs to grants being made. * Effect or potential effect: The Organization received reimbursement for ineligible labor expenses. * Recommendation: We recommend the Organization review and revise its current internal control procedures to ensure all employee wage allocations for grant charge outs are reviewed and agreed to actual hours worked per timesheets. * View of Responsible Officials: Please refer to Correction Action Plan * Questioned Costs - None, once the issue was identified during the allowable cost testwork, Boys and Girls Club of the Kenai Peninsula made the proper corrections to exclude those wages that weren?t actual worked within the program and included wages that were allowable. The remaining unallowable costs were then evaluated and were below both known and likely questioned costs threshold