Finding 555231 (2023-001)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2025-04-16
Audit: 353845
Auditor: Eccezion

AI Summary

  • Core Issue: Management must ensure compliance with grant requirements, but errors in wage reporting were found.
  • Impacted Requirements: Incorrect gross wages submitted for reimbursement led to questioned costs of $15,478.
  • Recommended Follow-Up: Management should enhance review processes for grant expenditures before submission to prevent future discrepancies.

Finding Text

Criteria or specific requirement: Management is responsible for ensuring that the Club complies with all grant requirements. Condition: During the audit it was noted that instances of wages submitted for reimbursement for two Club employees were more than gross wages that should have been assigned to the grant based on the amount of the paycheck and the percentage allocation. Questioned Costs: Questioned costs consist of the difference between what was submitted to the grant for reimbursement for the specific paychecks tested and the actual costs that should have been submitted, for an amount of $15,478. Context: Gross wages for the two employees were incorrectly entered into the grant expenditure report. Effect: Grant reimbursement requests could be misstated if discrepancies are not caught before they are submitted for reimbursement. Cause: Gross wages for two employees were entered incorrectly in the grant expenditure report and the inaccurate entry was not caught before the reimbursement requests were submitted. Recommendation: Management should review grant expenditures carefully before they are submitted for reimbursement. Management’s response: The Club plans to review the issue with its current procedures and revise them as necessary to provide better controls over grant expenditures.

Corrective Action Plan

Condition: During the audit it was noted that instances of wages submitted for reimbursement for two Club employees were more than gross wages that should have been assigned to the grant based on the amount of the paycheck and the percentage allocation. Plan: The Club plans to review the issue with its current procedures and revise them as necessary to provide better controls over grant expenditures. Anticipated Date of Completion: As soon as possible – before FY25 year end Name of Contact Person: Germain Castellanos, CEO Management Response: Since the audit, we have evaluated our procedures related to grant reimbursement requests review and we are working on improving our current procedures.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $718,741
84.287 Twenty-First Century Community Learning Centers $351,958
16.726 Juvenile Mentoring Program $74,000
93.558 Temporary Assistance for Needy Families $52,130