FAC Explorer

Finding 498527 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-09-26
Audit: 321263
Organization: Boys & Girls Clubs of South Puget Sound (WA)
Auditor: Johnson Stone & Pagano P S

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards (SEFA) was overstated by $303,678 due to errors.
  • Impacted Requirements: The SEFA did not comply with Uniform Guidance, risking incorrect major program selection.
  • Recommended Follow-Up: Implement oversight procedures to ensure accurate preparation of the SEFA.

Finding Text

Preparation of Schedule of Expenditures of Federal Awards ("SEFA") Criteria The SEFA is required to be prepared in accordance with the Uniform Guidance to reflect expenditures of federal awards. Condition The original SEFA presented to the audit firm was overstated by $303,678 due to several errors. Context The SEFA did not accurately reflect the proper amount of federal expenditures. Effect The SEFA did not properly reflect the amount of federal awards as required by Uniform Guidance and had the potential to have an incorrect major program selected. Cause The Organization's internal control over the preparation of the SEFA was not effective to verify the proper amount of federal expenditures. Auditor's Recommendations We recommend implementation of procedures to provide oversight that ensures the completion of an accurate SEFA.

Corrective Action Plan

Preparation of Schedule of Expenditures of Federal Awards ("SEFA") Condition Schedule for Expenditures of Federal Awards was overstated by $303,678 due to several errors. CORRECTIVE ACTION: Beginning September 2024, Cindy Nguyen, Director of Finance will work with the Director of Data to keep and maintain a rolling SEFA schedule for the year. The total expenditures will be updated monthly by the Director of Data, who also creates and submits all of our grant billings. After which, the Director of Finance will go into the SEFA schedule to confirm the expenditure totals by comparing them to the GL. If any variances exist, the Director of Finance will reach out to the Director of Data to investigate the variances and document why potential variances would exist. They will also meet on a quarterly basis to review the SEFA to make sure nothing was missed or needs correcting.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 498528 2023-001
    Significant Deficiency
  • 498529 2023-001
    Significant Deficiency
  • 498530 2023-001
    Significant Deficiency
  • 1074969 2023-001
    Significant Deficiency
  • 1074970 2023-001
    Significant Deficiency
  • 1074971 2023-001
    Significant Deficiency
  • 1074972 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $249,874
84.287 Twenty-First Century Community Learning Centers $212,482
10.558 Child and Adult Care Food Program $202,883
10.559 Summer Food Service Program for Children $99,144
21.027 Coronavirus State and Local Fiscal Recovery Funds $57,055
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $52,929
14.218 Community Development Block Grants/entitlement Grants $25,000
16.726 Juvenile Mentoring Program $22,000