Finding 1217742 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-06-16

AI Summary

  • Core Issue: The Organization failed to submit the required reporting package on time, violating federal guidelines.
  • Impacted Requirements: Compliance with 2 CFR part 200, which mandates reporting within nine months or 30 days post-audit report.
  • Recommended Follow-Up: Implement stronger internal controls and address employee turnover to ensure timely reporting in the future.

Finding Text

Late Reporting and Noncompliance with Reporting Requirements Federal Agency: U.S. Department of Agriculture / U.S. Department of Education Federal Program: Child and Adult Care Food Program / Alaska Native Educational Programs ALN: 10.558 / 84.356A Award Numbers: 53301 / S356A210037 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: In accordance with 2 CFR part 200, subpart F, section 200.512, the reporting package must be submitted the earlier of nine (9) months after year end or 30 days after the report issuance. Condition and context: The Organization did not adhere to the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period. Cause: Due to high employee turnover and lack of internal controls over this function. Effect: The Organization was not in compliance with reporting requirements. Questioned Costs: None noted. Repeat finding: No, however due to the number of issues identified we believe this to be a systemic issue. Recommendation: We recommend the Organization adhere to Uniform Guidance reporting requirements. Management’s Response: Management concurs with the finding. See Corrective Action Plan.

Corrective Action Plan

The Boys and Girls Clubs of Southcentral Alaska has contracted with a national accounting firm, Fohrman and Fohrman, to reconcile the 2025 books and implement a simpler accounting structure. There will still be significant findings in 2025 as the organization ultimately closed due to financial instability. The new system will be implemented in 2026. Fohrman and Fohrman will continue on contract to ensure adequate financial reporting and reporting to the Board.

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 1217740 2024-002
    Material Weakness Repeat
  • 1217741 2024-003
    Material Weakness Repeat
  • 1217743 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.356 ALASKA NATIVE EDUCATIONAL PROGRAMS $757,173
16.726 JUVENILE MENTORING PROGRAM $446,542
10.558 CHILD AND ADULT CARE FOOD PROGRAM $274,693
93.493 CONGRESSIONAL DIRECTIVES $240,021
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $91,468
93.933 DEMONSTRATION PROJECTS FOR INDIAN HEALTH $49,285
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $19,737