Finding 579604 (2022-002)

Type of Finding: Significant Deficiency in Internal Control over Major Programs Criteria: A reconciliation of the Organization’s expenses to reimbursements should be performed and supporting documentation maintained with grant claims. Condition: The Boys and Girls Club of Livingston County (the Organization) remits a variety of expense reimbursements to various agencies. During the fiscal year the Organization incorrectly calculated the reimbursement amount for two months. There was a discrepancy totaling $15 between the amount of payments to the Organization and the supporting documentation that was made available to us during the audit request. 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: In 2023 we hired an additional accountant experienced with grants to assist in keeping track of expenses and reimbursements.