Finding 1155255 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-25

AI Summary

  • Core Issue: There is a significant deficiency in the internal controls over government grant reporting, leading to costs being reported in the wrong period.
  • Impacted Requirements: The Boys & Girls Club must establish and maintain effective policies and procedures for accurate government grant billing.
  • Recommended Follow-Up: Management acknowledges the issue and plans to implement corrective actions similar to those outlined in the previous finding (#2024-001).

Finding Text

Finding #2024-002 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Education, Passed through Texas Education Agency, Twenty-First Century Community Learning Centers, Assistance Listing #: 84.287, Contract Numbers: 246950307110006, 256950307110006, and 246950367110005, Contract Years: 08/01/23 – 07/31/24, 08/01/24 – 07/31/25, and 04/15/24 – 07/31/25. Criteria: Reporting – Management of Boys & Girls Club is responsible for establishing and maintaining an effective system of internal control over government grant reporting to ensure all costs are reported in the correct period on reimbursement requests. Condition and context: Same as finding reported as #2024-001. Cause: Failure to have policies and procedures over government grant billings. Effect: Costs were reported on government grant reimbursement requests in the wrong period. Recommendation: Same as finding reported as #2024-001. Views of responsible officers and planned corrective action: Management agrees with the finding. See Corrective Action

Corrective Action Plan

Finding #2024-002 – Significant Deficiency and Other Noncompliance. Condition and context: Same as finding reported as #2024-001. Recommendation: Same as finding reported as #2024-001. Planned corrective action: Year-end closing policies and procedures will be modified to ensure grant transactions are reviewed, reconciled, and include applicable accruals. Management will review grant reports monthly to ensure transactions are properly recorded. Responsible officer: Amber Newman, CEO. Estimated completion date: October 1, 2025.

Categories

Cash Management Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1155256 2024-003
    Material Weakness Repeat
  • 1155257 2024-004
    Material Weakness Repeat
  • 1155258 2024-003
    Material Weakness Repeat
  • 1155259 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.287 Twenty-First Century Community Learning Centers $1.61M
16.726 Juvenile Mentoring Program $78,950
14.218 Community Development Block Grants/entitlement Grants $25,278