Finding Text
Finding #2025-003 – 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: 256950307110006, 266950307110005, and 246950367110005, Contract Years: 08/01/24 – 07/31/25, 08/01/25 – 08/31/26, and 04/15/24 – 07/31/25. Criteria: Under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.305, if advances are provided, management is required to establish policies to minimize the lapse of time between the receipt and the expenditure of funds. Condition and context: In a sample of 30 vendor payments, we found three instances of reimbursement by the grantor totaling approximately $9,600 received approximately three to five months before payments were made to the vendors. Repeat of finding #2024-004. Cause: Boys & Girls Club does not have a policy in place to review the accounts payable to ensure that vendors are paid in a timely manner and invoices are not outstanding for an excess period of time. Effect: Failure to comply with cash management provisions resulted in federal funds being held for three to five months. Recommendation: Strengthen controls to ensure that invoices are paid in a timely manner to ensure federal reimbursements are not being held for an excess period of time. Views of Responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.