Finding Text
Assistance Listing Number(s): 93.558
Name of Federal Program or Cluster: Temporary Assistance for Needy Families (TANF)
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entity: Boys & Girls Clubs of Fox Valley
Award Period: July 1, 2023 through June 30, 2024
Criteria: Per 2 CFR 200.403(c) costs charged to the Federal award must be consistent with policies and procedures that apply Uniformly to both federally financed and other activities of the subrecipient.
Condition: An individual was charged to the Federal awards as an employee when the individual was contracted as an independent contractor. The award budgets did not include contractor services.
Cause: The individual was an employee up until October 9, 2023 when the independent contractor agreement was entered. No controls are in place to identify changes that costs are no longer recorded consistently with policies and procedures.
Effect or Potential Effect: Independent contractor costs charged are questioned and may be disallowed and repayment made.
Recommendation: Independent contractors are to be recorded to a contractor general ledger account per policies and procedures. A review of personnel costs to identify changes in personnel, ensure transactions are recorded per policies and procedures, and that award budgets are amended if necessary. Views of Responsible Officials: Boys and Girls Club of Dane County, Inc. agrees with the finding and is implementing procedures.