Finding Text
Finding 2023-002 – 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 July 1, 2023 through December 31, 2023.
Cause: During the last two quarters of the year ended December 31, 2023, the YMCA grants management team began reviewing grant reports and verbally discussing 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 are operating effectively.
Recommendation: YMCA management should strengthen its controls related to the review and approval of information on grant reporting ensuring that proper evidence is maintained of the control over compliance with financial reporting requirements.
Management’s Response: We agree with the finding and have implemented procedures to ensure established controls are being followed.