Finding 503558 (2023-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-10-23

AI Summary

  • Core Issue: There were inaccuracies in employee hours worked, leading to a $1,274 discrepancy in wages for three employees.
  • Impacted Requirements: Documentation of personnel expenses must accurately reflect work performed, as per Uniform Guidance.
  • Recommended Follow-Up: Implement a review policy for reimbursement requests to ensure accuracy and prevent errors.

Finding Text

Finding No. 2023-02: Twenty-First Century Community Learning Centers Grant Claim Support (Federal Assistance # 84.287) 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 26 bi-weekly timesheets and paystubs from 22 employees for the 12 month award period. We noted that for 3 employees the hours worked during the 12-month period were calculated incorrectly. This caused a net discrepancy of $1,274 of total wages during the 12- 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: The Boys & Girls Club 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, 2024 and will eliminate most reimbursement discrepancies, BGCLC will utilize the tool and update the financial policies & procedures to further delineate the duties of the CEO, CFO and Accountant (CPA).

Corrective Action Plan

In working with the funding agencies, financial tools have been provided to ensure the accuracy and completeness of the award periods. Each grant has diverse requirements, for example one grant doesn’t pay for overtime, PTO or Holiday’s, other grants do reimburse for those items which caused over submitting for wages, the funding agency only reimburses based on the actual of what the grant allows and doesn’t pay for any overages. The corrective action plan is to provide monthly reports utilizing the paystubs as opposed to the payroll reports generating from the fund accounting software as was noted some were on different months. The CFO will provide the monthly report to the CEO who will utilize the tool to verify the accuracy of the financial report. 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.

Categories

Internal Control / Segregation of Duties Cash Management Significant Deficiency

Other Findings in this Audit

  • 503556 2023-004
    Significant Deficiency
  • 503557 2023-005
    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