Finding 1079999 (2023-005)

Finding No. 2023-005: 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 8 bi-weekly timesheets and paystubs from one employee for the 4-month award period. The Organization incorrectly calculated the salary reimbursement for each month. This caused a net discrepancy of $99 of total wages during the 4-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: The financial policies and procedures will be modified with the policy to include review of the submissions by the CEO and the CPA prior to submission of the grant reimbursement request, this will increase the ability to segregate the duties and provide more accurate reporting. Overall, with 2023 still coping with lack of employment pool coming off COVID, securing the CFO was and is crucial to prevent future findings in the Internal Control over the programs.