Finding 565976 (2024-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-06-24

AI Summary

  • Core Issue: YMCA lacks documented evidence of internal controls over grant report reviews for the first half of 2024.
  • Impacted Requirements: Compliance with financial reporting standards for the Child Care and Development Block Grant.
  • Recommended Follow-Up: Strengthen and document controls for grant report reviews to ensure compliance and maintain evidence of effectiveness.

Finding Text

Finding 2024-001 – Significant Deficiency in Internal Controls over Reports Submitted to Grantors – Child Care and Development Block Grant – 93.575 Criteria: The Young Men’s Christian Association (“YMCA”) is responsible for establishing and properly implementing controls over compliance with financial reporting on a periodic basis. Condition: During the audit, we noted no evidence of the performance of controls related to the review of reports required to be submitted to grantors for the period January 1, 2024 through June 21, 2024. Cause: During the first two quarters of the year ended December 31, 2024, the YMCA grants management team reviewed grant reports and verbally discussed them before submission to the grantor. No evidence of the performance of the controls related to the review and approval of the reports to be submitted to the grantor was retained. Effect: The YMCA is not able to produce documentation that the internal controls implemented were operating effectively during that period. Recommendation: YMCA management should strengthen its controls related to the review and approval of information on grant reporting ensuring proper evidence is maintained of the control over compliance with financial reporting requirements. Management’s Response: We agree with the finding and implemented procedures effective June 22, 2024 to ensure established controls are being followed.

Corrective Action Plan

Finding 2024-001 – Significant Deficiency in Internal Controls over Reports Submitted to Grantors – Child Care and Development Block Grant – 93.575 Recommendation: YMCA management should strengthen its controls related to the review and approval of information on grant reporting ensuring proper evidence is maintained of the control over compliance with financial reporting requirements. Corrective Action: Management will ensure reviews of documents submitted to grantors will be reviewed and documented such that evidence of such reviews will be retained. Person Responsible for Corrective Action: Chief Financial Officer Anticipated Completion Date for Corrective Action: The Corrective Action was implemented effective June 22, 2024. If there are questions regarding this corrective action plan, please call Marcy Towns, Chief Financial Officer, at (615) 259-9622.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 565977 2024-001
    Significant Deficiency Repeat
  • 565978 2024-001
    Significant Deficiency Repeat
  • 565979 2024-001
    Significant Deficiency Repeat
  • 1142418 2024-001
    Significant Deficiency Repeat
  • 1142419 2024-001
    Significant Deficiency Repeat
  • 1142420 2024-001
    Significant Deficiency Repeat
  • 1142421 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $204,540
10.558 Child and Adult Care Food Program $154,036
10.559 Summer Food Service Program for Children $96,544
84.305 Education Research, Development and Dissemination $35,113
93.575 Child Care and Development Block Grant $34,719
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $20,033
11.028 Connecting Minority Communities Pilot Program $8,035