Core Issue: The Club failed to maintain proper documentation for employee wages and grant-related expenses.
Impacted Requirements: Compliance with grant requirements is jeopardized due to missing wage documentation and invoices.
Recommended Follow-Up: Management should ensure all employee files are updated and maintain records for salary changes and purchased supplies.
Finding Text
Criteria or specific requirement: Management is responsible for ensuring that the Club complies with all grant requirements. Condition: During the audit it was noted that there were some individuals who did not have documentation of the correct wage that was used on the grant expenditure report. The Club also did not keep any copies of the invoices to back up which expenses are allocated to the grant. Questioned Costs: None Context: There were some individuals who could have been paid the incorrect salary amount and the Club could request reimbursement for supplies that were not actually purchased. Effect: Undocumented salary rates and supply invoices could lead to unallowable grant expenditures. Cause: The Club did not keep accurate employee files and they were not able to find documentation to support the salary wages at the time of testing. Recommendation: Management should review the employee files and keep all the necessary documentation for wage increases. Management should also keep track of supplies that are purchased and keep the necessary documentation for backup. Management's response: The Club has started to keep the documentation for each salary increase and review in the employee's personnel files and the supplies that have been purchased.
Corrective Action Plan
Condition: During the audit it was noted that there were some individuals who did not have documentation of the correct wage that was used ont he grant expenditure report. The Club also does not keep any copies of the invoices to back up which expenses are allocated to the grant. Plan: The Club plans to review the issue with its current procedures and revise them as necessary to provide better controls over grant expenditures. Anticipated Date of Completion: As soon as possible - before FY25 year end Name of Contact Person: Germain Castellanos, CEO Management Response: Since the audit, we have started to keep the documentation for each salary increase and review in the employee's personnel files and the supplies that have been purchased.