Finding Text
Type of Finding: Significant Deficiency in Internal Control over Major Programs
Criteria: A reconciliation of the Organization’s expenses to reimbursements should be performed and supporting documentation maintained with grant claims.
Condition: The Boys and Girls Club of Livingston County (the Organization) remits a variety of expense reimbursements to various agencies. During the fiscal year the Organization incorrectly calculated the reimbursement amount for two months. There was a discrepancy totaling $153 between the amount of payments to the Organization and the supporting documentation that was made available to us during the audit request.
Cause: The Organization functions with a small number of office personnel therefore, the Organization is unable to have a review of the requested reimbursement performed.
Effect: A lack of segregation of duties increases the risk that errors or fraud may occur and not be prevented or detected on a timely basis.
Questioned Costs: None
Repeat Finding: No
Recommendation: We recommend the Organization implement a policy to have an employee review the requested reimbursements and corresponding receipts to ensure they agree.
Management Response: In 2023 we hired an additional accountant experienced with grants to assist in keeping track of expenses and reimbursements.