Finding 1084416 (2023-001)

Significant Deficiency
Requirement
ABC
Questioned Costs
-
Year
2023
Accepted
2024-11-14

AI Summary

  • Core Issue: The Organization lacks written policies for compliance with federal funding requirements, specifically regarding allowable costs and cash management.
  • Impacted Requirements: Noncompliance with §200.302 of the Uniform Guidance, which mandates written procedures for cost allowability and financial management.
  • Recommended Follow-Up: Develop and approve the necessary written policies by December 31, 2024, and ensure they are stored in the permanent files.

Finding Text

2023-001 Twenty-First Century Community Learning Centers – Assistance Listing No. 84.287 Significant Deficiency in Internal Control Over Compliance and Noncompliance – Appropriate Internal Control Structure Related to Compliance Requirements A. Activities Allowed or Unallowed, B. Allowable Costs/Cost Principles, and C. Cash Management Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires non-Federal entities receiving Federal funds to have certain written policies, procedures, and standards of conduct (policies) in place. Condition and Context: The Organization does not have the written policies in place in accordance with §200.302 Financial Management paragraph (b)(6) and (b)(7), which requires written procedures for determining the allowability of costs in accordance with Subpart E of the Uniform Guidance and the terms and conditions of the federal award. Cause and Effect: As the policies referenced above are not written, the Organization is not in compliance with the requirements. In addition, lack of written policies related to federal awards may lead to noncompliance with other federal requirements and the terms and conditions of federal awards. Recommendation: We recommend the policies in accordance with §200.302 Financial Management paragraph (b)(6) and (b)(7) be written by the Organization, approved by the Board of Directors, and included in the permanent files of BGCH. Views of Responsible Officials and Planned Corrective Action: We agree with the recommendation and plan to have the corrective action implemented by December 31, 2024. Boys & Girls Club of Huntington has always followed the Twenty-First Century Community Learning Centers policy on activities allowed or unallowed, but had not put a written policy in place to recognize this, so will create the written policy and have it approved by the end of 2024.

Categories

Allowable Costs / Cost Principles Cash Management Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 507974 2023-001
    Significant Deficiency
  • 507975 2023-002
    Significant Deficiency
  • 507976 2023-003
    Material Weakness
  • 1084417 2023-002
    Significant Deficiency
  • 1084418 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.287 Twenty-First Century Community Learning Centers $542,440
84.425U Covid-19 - Education Stabilization Fund $315,000
10.558 Child and Adult Care Food Program $203,300
10.559 Summer Food Service Program for Children $74,678
16.726 Juvenile Mentoring Program $25,537