Finding 46917 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-09-13

AI Summary

  • Core Issue: Boys & Girls Club failed to produce a financial report that matches federal award expenditures, indicating a significant deficiency in internal controls.
  • Impacted Requirements: This noncompliance affects the accurate reporting of federal awards as required by Uniform Guidance.
  • Recommended Follow-Up: Implement policies to ensure all federal expenditures are recorded in the general ledger by class code for accurate reporting.

Finding Text

Finding #2022-001 ? 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: 22695030711007, 226950267110008, 22698026711008, and 226950267110006 Contract Years: 08/01/21 ? 07/31/22, 08/01/21 ? 07/31/22, 08/01/22 ? 07/31/23, and 08/01/22 ? 07/31/23 Criteria: Financial management ? Management is responsible for establishing a system of internal control over financial reporting that includes identifying, in its accounts, all federal awards received and expended in accordance with Uniform Guidance ?200.302. Management is also responsible for preparing a schedule of expenditures of federal awards and for ensuring actual expenditures are reported in accordance with Uniform Guidance ?200.510. Condition and context: Boys & Girls Club was unable to produce a report from its general ledger system that agreed to the schedule of expenditures of federal awards. This is a repeat of findings #2021-002 and #2021-003. Cause: Boys & Girls Club recorded grant expenditures on a spreadsheet during the year ended December 31, 2022, rather than consistently recording the expenditures in the respective QuickBooks? class code established for each grant. Effect: Failure to adequately establish and maintain a system of internal controls over financial reporting could adversely affect Boys & Girls Club?s ability to correctly identify and summarize federal awards for reporting in accordance with the Uniform Guidance. Recommendation: Establish policies and procedures to record all federal expenditures in the general ledger system by class code in order to generate a report of expenditures by grant. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Corrective Action Plan

Finding #2022-001 ? 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: 22695030711007, 226950267110008, 22698026711008, and 226950267110006 Contract Years: 08/01/21 ? 07/31/22, 08/01/21 ? 07/31/22, 08/01/22 ? 07/31/23, and 08/01/22 ? 07/31/23 Recommendation: Establish policies and procedures to record all federal expenditures in the general ledger system by class code in order to generate a report of expenditures by grant. Planned corrective action: Our policy was modified subsequent to the 2021 finding to require government grant transactions be recorded using the QuickBooks? P & L by class feature. Each grant now has a distinct class code and all grant transactions must be recorded in the appropriate P & L class. Responsible officer: Amber Newman, CEO Estimated completion date: August 1, 2022

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 623359 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.287 Twenty-First Century Community Learning Centers $3.09M
14.218 Community Development Block Grants/entitlement Grants $24,273