Finding 1080000 (2023-002)

Finding No. 2023-02: Twenty-First Century Community Learning Centers Grant Claim Support (Federal Assistance # 84.287) 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 26 bi-weekly timesheets and paystubs from 22 employees for the 12 month award period. We noted that for 3 employees the hours worked during the 12-month period were calculated incorrectly. This caused a net discrepancy of $1,274 of total wages during the 12- 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 Boys & Girls Club IL Alliance that manages the grant for the local organization has created a new tool to assist in the accuracy of the submissions which have been provided since January 1st, 2024 and will eliminate most reimbursement discrepancies, BGCLC will utilize the tool and update the financial policies & procedures to further delineate the duties of the CEO, CFO and Accountant (CPA).