Finding Text
2023-003 Controls over Allowable Costs – Significant Deficiency in Internal Control over Compliance Criteria and Condition: The YMCA should have controls in place to provide assurance that federal awards are expended only for allowable activities and that the costs of goods and services charged to federal awards are allowable and in accordance with the applicable cost principles. The YMCA did not have proper controls in place. Cause: For one of the twenty-five selections for the Twenty-First Century Community Learning Centers and for funds awarded totaling $11,751 for the Child Care and Development Block Grants, support was not provided related to receipts for purchases. For multiple selections, documentation of review and approval was not provided. In addition, for multiple selections, we could not trace expenditures to the bank due to payments issued in batches that are not reconciled to the associated federal awards. Effect and Context: Proper documentation was not available for the audit. Recommendation: We recommend the YMCA institute an internal policy that requires expenditures related to federal awards be maintained, including purpose, receipts/invoices, coding, and review of approval. Views of responsible officials and planned corrective actions: The CFO, along with the financial team will review federal awards and expenses charged to federal programs to ensure amounts are coded in the appropriate manner. The CFO and financial team will ensure that support is retained and available for all expenses charged to federal programs.