Finding Text
Finding No. 2023-004: Temporary Assistance for Needy Families Grant Claim Support (Federal Assistance # 93.558)
Type of Finding: Significant Deficiency in Internal Control over Major Programs
Criteria: Uniform Guidance indicates that that standards for documentation of personnel expenses are such that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed.
Condition: The Boys and Girls Club of Livingston County (the Organization) remits a variety of expense reimbursements to various agencies. We tested 13 bi-weekly timesheets and paystubs from 3 employees for the 6-month award period. The Organization incorrectly calculated the salary reimbursement for each month. This caused a net discrepancy of ($184) of total wages during the 6-month award period.
Cause: The Organization functions with a small number of office personnel therefore, the Organization is unable to have a review of the requested reimbursement performed.
Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis.
Questioned Costs: None
Repeat Finding: No
Recommendation: We recommend the Organization implement a policy to have an employee review the requested reimbursements and corresponding receipts to ensure they agree.
Management Response: An increase of staff, a staff member and the CPA overview will be provided to ensure increased functionality for requested reimbursements and corresponding receipts verifying that each monthly reimbursement is balanced with the receipts and wages.