Kansas Alliance of Boys & Girls Clubs, Inc.

Federal Program Information: Temporary Assistance for Needy Families (TANF) (CDFA #93.558) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Subrecipient Monitoring (2 CFR 200.332(d)(2),(3)) ? Pass-through entity monitoring of the subrecipient must include: following-up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass-through entity detected through audits, on-site reviews, and written confirmation from the subrecipient, highlighting the status of actions planned or taken to address Single Audit findings related to the particular subaward; and issuing a management decision for applicable audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity as required by ?200.521. Condition: The Organization did not follow-up on certain deficiencies identified during its subrecipients? Single Audits. Cause: Insufficient internal controls and lack of sufficient administrative oversight with respect to subrecipient monitoring procedures. Effect or Potential Effect: The Alliance was not in compliance with requirements for pass-through entities. Questioned Costs: None. Context: For 2 of 3 local clubs with single audits performed for fiscal year 2019, in which the TANF grant was tested as a major program, the Organization did not follow-up on a deficiency related to its subaward. Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend that the Alliance and BGCA as fiscal agent enhance their monitoring activities and internal controls to ensure that deficiencies identified at local clubs are addressed and corresponding management decisions are issued.

Name of Responsible Individual(s): Romero Brown; Alliance Director, Jason Penegar, Vice President, Controller; Michelle Branan, Internal Auditor Corrective Action: BGCA currently receives the single audits annually for each subrecipient (Club). All single audit deficiencies will be shared directly with the Alliance in the future. We will ensure a collaborative follow up is completed on any future deficiency with subrecipient (Club). Anticipated Completion Date: April 1, 2022