Finding 503556 (2023-004)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-10-23

Audit: 325727

Organization: Boys and Girls Club of Livingston County (IL)

Auditor: Cukierski & Associates LLC

AI Summary

Core Issue: The Organization miscalculated salary reimbursements, leading to a $184 discrepancy over six months.
Impacted Requirements: Documentation for personnel expenses must accurately reflect actual work performed, as per Uniform Guidance.
Recommended Follow-Up: Implement a review policy for reimbursements to ensure accuracy and prevent errors or fraud.

Finding Text

Finding No. 2023-004: Temporary Assistance for Needy Families Grant Claim Support (Federal Assistance # 93.558) Type of Finding: Significant Deficiency in Internal Control over Major Programs Criteria: Uniform Guidance indicates that that standards for documentation of personnel expenses are such that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: The Boys and Girls Club of Livingston County (the Organization) remits a variety of expense reimbursements to various agencies. We tested 13 bi-weekly timesheets and paystubs from 3 employees for the 6-month award period. The Organization incorrectly calculated the salary reimbursement for each month. This caused a net discrepancy of ($184) of total wages during the 6-month award period. 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: An increase of staff, a staff member and the CPA overview will be provided to ensure increased functionality for requested reimbursements and corresponding receipts verifying that each monthly reimbursement is balanced with the receipts and wages.

Corrective Action Plan

An increase of staff, a staff member and the CPA overview will be provided to ensure increased functionality for requested reimbursements and corresponding receipts verifying that each monthly reimbursement is balanced with the receipts and wages. The IL Alliance that manages the grant for the local organization has created a new tool to assist in the accuracy of the submissions which have been provided since January 1st which will eliminate most reimbursement discrepancies. For example, if the supplies budget line-item was $500.00 and the organization submitted $525.00 in receipts the tool being utilized will be highlighted in red and will not be reimbursed at $525.00, only the $500.00 allowed and this is through all the grants. No overage of dollars was received other than what the grant allowed even though the submission might have been less or more. If it was less, the IL Alliance reaches out to the organization for additional receipts. The Boys & Girls Club of Livingston County will ensure the numbers are more accurate in the reporting moving forward.

Other Findings in this Audit

503557 2023-005

Significant Deficiency
503558 2023-002

Significant Deficiency
503559 2023-003

Significant Deficiency
1079998 2023-004

Significant Deficiency
1079999 2023-005

Significant Deficiency
1080000 2023-002

Significant Deficiency
1080001 2023-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
84.287	Twenty-First Century Community Learning Centers	$524,578
84.425	Education Stabilization Fund	$277,580
93.558	Temporary Assistance for Needy Families	$226,764
94.006	Americorps State and National 94.006	$84,572
16.726	Juvenile Mentoring Program	$80,622
10.559	Summer Food Service Program for Children	$24,807
10.558	Child and Adult Care Food Program	$19,959