EIN: 020259874
UEI: J77GVP4BPRP2
Audited by: Nathan Wechsler & Company, P.A.
Oversight agency: 21 [Department of the Treasury]
View federal awards & risk assessment →
Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on July 17, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by January 17, 2027 (135 days from today).
What is a management decision? →FAC accepted this audit on September 30, 2025 — management decision was due March 30, 2026.
The Boys and Girls Clubs of Central and Northern New Hampshire, Inc. does not have effective internal control over the preparation of the SEFA. Effects of Condition: Potential overstatement or understatement of expenditures could exist in the SEFA and might not be detected and corrected. Recommendation: It is recommended that The Boys and Girls Clubs of Central and Northern New Hampshire, Inc. implement formal procedures for SEFA preparation, including independent review by someone other than the preparer. View of Responsible Officials and Planned Corrective Action: The Club has reviewed the finding and acknowledges that $7,000 related to funds received in advance for 2025 expenditures and $9,00 related to 2023 expenditures due to a true up of allowable indirect charges for the grant fiscal year were inaccurately reported on the SEFA submitted for an audit. The Club acknowledges the importance of accurately preparing the SEFA in accordance with Uniform Guidance. To address this finding the following corrective actions are currently being implemented: Tracking of Federal Awards: All grant expenditures will be tracked to grant codes in the accounting software. This procedure has already been implemented in 2025. Year-End SEFA Review Process: A formal review checklist will be implemented and signed off by both the Grant Accountant and Senior Staff Accountant prior to audit submission. Planned Implementation Date of Corrective Action: Corrective action has started and will be completed by 12/31/2025. Person Responsible for Corrective Action: Amanda Stewart, CPA, Senior Staff Accountant
Show full finding ▾Hide full finding ▴2024-001 Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Federal Agency: Various Federal Program Name: Multiple Programs Program Year: 2024 Assistance Listing Number: 21.027 & 93.575 Finding Type: Significant deficiency in internal control over compliance Criteria: Management is responsible for the preparation of the Schedule of Expenditures of Federal Awards. The SEFA must include the total Federal awards expended, the assistance listing number, and whether the award was direct or pass-through. Condition and context: During the audit it was noted that for the year ended December 31, 2024, the SEFA reported more in federal spending than it should have. There was an overstatement of approximately $16,000 related to 2023 and 2025 expenditures included in the first draft of the SEFA. Cause of Condition: The Boys and Girls Clubs of Central and Northern New Hampshire, Inc. does not have effective internal control over the preparation of the SEFA. Effects of Condition: Potential overstatement or understatement of expenditures could exist in the SEFA and might not be detected and corrected. Recommendation: It is recommended that The Boys and Girls Clubs of Central and Northern New Hampshire, Inc. implement formal procedures for SEFA preparation, including independent review by someone other than the preparer. View of Responsible Officials and Planned Corrective Action: The Club has reviewed the finding and acknowledges that $7,000 related to funds received in advance for 2025 expenditures and $9,00 related to 2023 expenditures due to a true up of allowable indirect charges for the grant fiscal year were inaccurately reported on the SEFA submitted for an audit. The Club acknowledges the importance of accurately preparing the SEFA in accordance with Uniform Guidance. To address this finding the following corrective actions are currently being implemented: Tracking of Federal Awards: All grant expenditures will be tracked to grant codes in the accounting software. This procedure has already been implemented in 2025. Year-End SEFA Review Process: A formal review checklist will be implemented and signed off by both the Grant Accountant and Senior Staff Accountant prior to audit submission. Planned Implementation Date of Corrective Action: Corrective action has started and will be completed by 12/31/2025. Person Responsible for Corrective Action: Amanda Stewart, CPA, Senior Staff Accountant
View of Responsible Officials and Planned Corrective Action: The Club has reviewed the finding and acknowledges that $7,000 related to funds received in advance for 2025 expenditures and $9,00 related to 2023 expenditures due to a true up of allowable indirect charges for the grant fiscal year were inaccurately reported on the SEFA submitted for an audit. The Club acknowledges the importance of accurately preparing the SEFA in accordance with Uniform Guidance. To address this finding the following corrective actions are currently being implemented: Tracking of Federal Awards: All grant expenditures will be tracked to grant codes in the accounting software. This procedure has already been implemented in 2025. Year-End SEFA Review Process: A formal review checklist will be implemented and signed off by both the Grant Accountant and Senior Staff Accountant prior to audit submission.
The Boys and Girls Clubs of Central and Northern New Hampshire, Inc.’s internal controls did not enforce documented vendor invoice approvals prior to payment. Effects of Condition: Without documented approval, there is an increased risk that unallowable or erroneous costs could be charged to the federal program, potentially resulting in noncompliance with Uniform Guidance requirements. Recommendation: It is recommended that The Boys and Girls Clubs of Central and Northern New Hampshire, Inc. require and document approval of all vendor invoices before payment, either with a signature, initials or digital system log. View of Responsible Officials and Planned Corrective Action: The Club has reviewed the findings and acknowledges the importance of documented controls over federal expenditures. The expenses noted were submitted for payment by the appropriate approver via Email, however, the emails were not maintained due to staff turnover. To address this finding, all grant expenditures are documented with approval and scanned prior payment. Planned Implementation Date of Corrective Action: Corrective action plan has been implemented. Person Responsible for Corrective Action: Amanda Stewart, CPA, Senior Staff Accountant
Show full finding ▾Hide full finding ▴2024-002 Vendor Records Federal Agency: Department of Health and Human Services Federal Program Name: Child Care and Development Fund Cluster Program Year: 2024 Assistance Listing Number: 93.575 Compliance: Activities Allowed and Unallowed and Allowable Costs/Cost Principles Finding Type: Significant deficiency in internal control over compliance Criteria: Management is responsible for maintaining adequate records for vendor transactions charged to federal awards that accurately reflect expenses. These records must include an invoice with a signature from a knowledgeable individual approving the expense. Condition and context: During compliance testing, it was noted that 34 out of 60 vendor transactions tested were missing approval by knowledgeable individuals. Cause of Condition: The Boys and Girls Clubs of Central and Northern New Hampshire, Inc.’s internal controls did not enforce documented vendor invoice approvals prior to payment. Effects of Condition: Without documented approval, there is an increased risk that unallowable or erroneous costs could be charged to the federal program, potentially resulting in noncompliance with Uniform Guidance requirements. Recommendation: It is recommended that The Boys and Girls Clubs of Central and Northern New Hampshire, Inc. require and document approval of all vendor invoices before payment, either with a signature, initials or digital system log. View of Responsible Officials and Planned Corrective Action: The Club has reviewed the findings and acknowledges the importance of documented controls over federal expenditures. The expenses noted were submitted for payment by the appropriate approver via Email, however, the emails were not maintained due to staff turnover. To address this finding, all grant expenditures are documented with approval and scanned prior payment. Planned Implementation Date of Corrective Action: Corrective action plan has been implemented. Person Responsible for Corrective Action: Amanda Stewart, CPA, Senior Staff Accountant
View of Responsible Officials and Planned Corrective Action: The Club has reviewed the findings and acknowledges the importance of documented controls over federal expenditures. The expenses noted were submitted for payment by the appropriate approver via Email, however, the emails were not maintained due to staff turnover. To address this finding, all grant expenditures are documented with approval and scanned prior payment.
FAC accepted this audit on June 6, 2024 — management decision was due December 6, 2024.
As a result of this condition, the Club lacks internal controls over the preparation of the financial statements in accordance with GAAP, and instead relied, in part, on its external auditors for assistance with this task. Recommendation: It is recommended that the Club ensures that members of management responsible for the accounting and reporting function receive appropriate training to ensure they are able to apply generally accepted accounting principals in review and taking responsibility over the financial statement and footnotes prepared by the external auditors. We also recommend hiring additional experienced staff to oversee the accounting and reporting function. View of Responsible Officials and Planned Corrective Action: The Club has evaluated the cost vs. benefit of establishing internal controls over the preparation of financials statements in accordance with GAAP and determined that it is in the best interest of the Club to outsource this task to its external auditors, and to carefully review the draft financial statements and notes prior to approving them and accepting responsibility for their content and presentation. Planned Implementation Date of Corrective Action: On-going. The Club will continue to evaluate the cost vs. benefit of having someone in management capable of preparation and/or of the financial statements in accordance with GAAP. Person Responsible for Corrective Action: Chris Emond, Chief Executive Officer
Show full finding ▾Hide full finding ▴Finding Type: Material weakness in internal controls over financial reporting. Criteria: The Club is required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). This the responsibility of the Club’s management. The preparation of the financial statements in accordance with GAAP requires internal controls over both maintaining internal books and records and reporting the external financial statements and the related footnotes. Conditions and context: The current staffing of the Club does not allow the Club to have an internal control system in place designed to provide for the preparation of the financials and related footnotes being audited. The Club requested that the external auditors draft the financial statements and accompanying notes as a result. Cause of condition: Due to the cost and other considerations, the Club has requested that their auditor’s draft the financial statement and related footnotes. Effect of Condition: As a result of this condition, the Club lacks internal controls over the preparation of the financial statements in accordance with GAAP, and instead relied, in part, on its external auditors for assistance with this task. Recommendation: It is recommended that the Club ensures that members of management responsible for the accounting and reporting function receive appropriate training to ensure they are able to apply generally accepted accounting principals in review and taking responsibility over the financial statement and footnotes prepared by the external auditors. We also recommend hiring additional experienced staff to oversee the accounting and reporting function. View of Responsible Officials and Planned Corrective Action: The Club has evaluated the cost vs. benefit of establishing internal controls over the preparation of financials statements in accordance with GAAP and determined that it is in the best interest of the Club to outsource this task to its external auditors, and to carefully review the draft financial statements and notes prior to approving them and accepting responsibility for their content and presentation. Planned Implementation Date of Corrective Action: On-going. The Club will continue to evaluate the cost vs. benefit of having someone in management capable of preparation and/or of the financial statements in accordance with GAAP. Person Responsible for Corrective Action: Chris Emond, Chief Executive Officer
The Club has evaluated the cost vs. benefit of establishing internal controls over the preparation of financials statements in accordance with GAAP and determined that it is in the best interest of the Club to outsource this task to its external auditors, and to carefully review the draft financial statements and notes prior to approving them and accepting responsibility for their content and presentation.
2021-001
During compliance testing, it was noted that no adequate time and effort documentation was maintained for salaried employees being charged to the Federal awards. Context: Of a statical sample of payroll, it was noted that salaried employees who do work within more than one department did not have a distribution of their hours and pay allocated to the different departments included on their timecards. For employees who work solely in one department also lacked appropriate time and effort documentation. Cause of condition: The Club’s current controls in place were not appropriate to address the compliance requirement. Effect of Condition: As a result of this condition, the Club’s expenditures charged to the federal grant for salaries lacked adequate compliance documentation. Recommendation: It is recommended that the Club maintain adequate records for salaries charged to federal awards, such as signed timesheets with allocation amounts included or semi-annual certification for employees working solely on one federal program. View of Responsible Officials and Planned Corrective Action: The nature of this funding was general operating support with no specified concrete deliverable per the grantor (State of New Hampshire). In accordance with prior year guidance on grant compliance and the grantor’s guidance to the Club stating personnel costs were an allowable use of funds, the Club received quarterly approvals from management and/or supervisors for the allocation of expense to the grant. Employees and supervisors approve weekly timecards and total hours paid without specification as the source of funds. The Club will provide an employee/supervisor certification in FY2023. Planned Implementation Date of Corrective Action: Fiscal year 2023 and ongoing Person Responsible for Corrective Action: Kathy Woodfin, Finance Director
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Health and Human Services Cluster Name: Child Care and Development Fund Cluster Program Year: 2022 Assistance Listing Number: 93.575 Compliance: Activities Allowed and Unallowed and Allowable Costs/Cost Principles Finding Type: Significant deficiency in internal controls over compliance Criteria: Management is responsible for maintaining adequate records for salaries charged to federal awards that accurately reflect the work performed. These records must also support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award or on a Federal award and non-Federal award. Condition: During compliance testing, it was noted that no adequate time and effort documentation was maintained for salaried employees being charged to the Federal awards. Context: Of a statical sample of payroll, it was noted that salaried employees who do work within more than one department did not have a distribution of their hours and pay allocated to the different departments included on their timecards. For employees who work solely in one department also lacked appropriate time and effort documentation. Cause of condition: The Club’s current controls in place were not appropriate to address the compliance requirement. Effect of Condition: As a result of this condition, the Club’s expenditures charged to the federal grant for salaries lacked adequate compliance documentation. Recommendation: It is recommended that the Club maintain adequate records for salaries charged to federal awards, such as signed timesheets with allocation amounts included or semi-annual certification for employees working solely on one federal program. View of Responsible Officials and Planned Corrective Action: The nature of this funding was general operating support with no specified concrete deliverable per the grantor (State of New Hampshire). In accordance with prior year guidance on grant compliance and the grantor’s guidance to the Club stating personnel costs were an allowable use of funds, the Club received quarterly approvals from management and/or supervisors for the allocation of expense to the grant. Employees and supervisors approve weekly timecards and total hours paid without specification as the source of funds. The Club will provide an employee/supervisor certification in FY2023. Planned Implementation Date of Corrective Action: Fiscal year 2023 and ongoing Person Responsible for Corrective Action: Kathy Woodfin, Finance Director
The nature of this funding was general operating support with no specified concrete deliverable per the grantor (State of New Hampshire). In accordance with prior year guidance on grant compliance and the grantor’s guidance to the Club stating personnel costs were an allowable use of funds, the Club received quarterly approvals from management and/or supervisors for the allocation of expense to the grant. Employees and supervisors approve weekly timecards and total hours paid without specification as the source of funds. The Club will provide an employee/supervisor certification in FY2023.
2021-004
During compliance testing it was noted that final reporting was not accurate. Context: One final report for the federal award did not match supporting documentation. Cause of condition: Grant reporting was prepared by a new employee who was unaware of prior year expenditure categories. Effect of Condition: As of a resulted of this condition, the Club’s required reporting was misstated. Recommendation: It is recommended that a more thorough review of the prepared final reports is done prior to submission. View of Responsible Officials and Planned Corrective Action: A new employee prepared the final grant reporting to the grantor (State of NH) who had no knowledge or participation in the FY21 audit. In FY21 the auditors had tested the multi-year grant, and the Club did not clearly label the most up-to-date and final audited files, and incomplete information was used for preparation of the final report. The Club has engaged an IT consultant to improve its technology. Additionally, the finance team will also institute best practices for digital file management. Planned Implementation Date of Corrective Action: Ongoing Person Responsible for Corrective Action: Kathy Woodfin, Finance Director
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Health and Human Services Cluster Name: Child Care and Development Fund Cluster Program Year: 2022 Assistance Listing Number: 93.575 Compliance: Reporting Finding Type: Material weakness in internal controls over compliance Criteria: Management is responsible for submitting timely, accurate reporting based on the terms of the grant agreement. Condition: During compliance testing it was noted that final reporting was not accurate. Context: One final report for the federal award did not match supporting documentation. Cause of condition: Grant reporting was prepared by a new employee who was unaware of prior year expenditure categories. Effect of Condition: As of a resulted of this condition, the Club’s required reporting was misstated. Recommendation: It is recommended that a more thorough review of the prepared final reports is done prior to submission. View of Responsible Officials and Planned Corrective Action: A new employee prepared the final grant reporting to the grantor (State of NH) who had no knowledge or participation in the FY21 audit. In FY21 the auditors had tested the multi-year grant, and the Club did not clearly label the most up-to-date and final audited files, and incomplete information was used for preparation of the final report. The Club has engaged an IT consultant to improve its technology. Additionally, the finance team will also institute best practices for digital file management. Planned Implementation Date of Corrective Action: Ongoing Person Responsible for Corrective Action: Kathy Woodfin, Finance Director
A new employee prepared the final grant reporting to the grantor (State of NH) who had no knowledge or participation in the FY21 audit. In FY21 the auditors had tested the multi-year grant, and the Club did not clearly label the most up-to-date and final audited files, and incomplete information was used for preparation of the final report. The Club has engaged an IT consultant to improve its technology. Additionally, the finance team will also institute best practices for digital file management.
2021-006
FAC accepted this audit on January 23, 2023 — management decision was due July 23, 2023.
As a result of this condition, the Club lacks internal controls over the preparation of the financial statements in accordance with GAAP, and instead relied, in part, on its external auditors for assistance with this task. Recommendation: It is recommended that the Club ensures that members of management responsible for the accounting and reporting function receive appropriate training to ensure they are able to apply generally accepted accounting principals in review and taking responsibility over the financial statement and footnotes prepared by the external auditors. We also recommend hiring additional experienced staff to oversee the accounting and reporting function.
Show full finding ▾Hide full finding ▴2021-001- Preparation of Financial Statements Finding Type: Material weakness in internal controls over financial reporting. Criteria: The Club is required to prepare financial statements in accordance with generally accepted accounting principles (GAAP). This the responsibility of the Club?s management. The preparation of the financial statements in accordance with GAAP requires internal controls over both maintaining internal books and records and reporting the external financial statements and the related footnotes. Conditions and context: The current staffing of the Club does not allow the Club to have an internal control system in place designed to provide for the preparation of the financials and related footnotes being audited. The Club requested that the external auditors draft the financial statements and accompanying notes as a result. Cause of condition: Due to the cost and other considerations, the Club has requested that their auditor?s draft the financial statement and related footnotes. Effect of Condition: As a result of this condition, the Club lacks internal controls over the preparation of the financial statements in accordance with GAAP, and instead relied, in part, on its external auditors for assistance with this task. Recommendation: It is recommended that the Club ensures that members of management responsible for the accounting and reporting function receive appropriate training to ensure they are able to apply generally accepted accounting principals in review and taking responsibility over the financial statement and footnotes prepared by the external auditors. We also recommend hiring additional experienced staff to oversee the accounting and reporting function.
The Club has evaluated the cost vs. benefit of establishing internal controls over the preparation of financials statements in accordance with GAAP and determined that it is in the best interest of the Club to outsource this task to its external auditors, and to carefully review the draft financial statements and notes prior to approving them and accepting responsibility for their content and presentation. Planned Implementation Date of Corrective Action: On-going. The Club will continue to evaluate the cost vs. benefit of having someone in management capable of preparation and/or of the financial statements in accordance with GAAP. Person Responsible for Corrective Action: Chris Emond, Chief Executive Officer
As a result of this condition, the Club?s accounting records were initially misstated by amounts that were material to the financial statements. Recommendation: The adjustments noted above have been reviewed by management, posted the Club?s records and are reported in the audited financial statements. It is recommended that a more formal review process over donations be implemented to reduce the risk of errors.
Show full finding ▾Hide full finding ▴2021-002 ? Recording Grants and Contributions receivable Finding Type: Material weakness in internal controls over financial reporting. Criteria: Management is responsible for maintaining its accounting records in accordance with generally accepted accounting principles (GAAP). Conditions and context: During the audit, we identified and proposed numerous adjustments to grants and contribution receivable account balances, which were approved and posted by management. Cause of condition: This condition was caused by lack of various oversights around entries and reconciliations to these accounts due to turnover in accounting staff. Effect of Condition: As a result of this condition, the Club?s accounting records were initially misstated by amounts that were material to the financial statements. Recommendation: The adjustments noted above have been reviewed by management, posted the Club?s records and are reported in the audited financial statements. It is recommended that a more formal review process over donations be implemented to reduce the risk of errors.
The Club was working to build an accounting staff that was equipped to handle increased volume of funding related to the COVID-19 pandemic. Management has reviewed the audit adjustments recommended by the auditor?s and posted the entries to the Club?s accounting system. After year-end, the Staff Accountant and Fund Development staff have worked diligently this year towards ensuring the two systems balance. This has included daily meetings, training, and software review to better coordinate between the development software and the general ledger. Planned Implementation Date of Corrective Action: Spring 2022 Person Responsible for Corrective Action: Chris Emond, Chief Executive Officer
As a result of this condition, the Club?s accounting records were initially misstated by amounts that were material to the financial statements.
Show full finding ▾Hide full finding ▴2021-003 ? Tracking of Net Assets with and without Donor Restrictions Finding Type: Material weakness in internal controls over financial reporting. Criteria: Management is responsible for maintaining its accounting records in accordance with generally accepted accounting principles (GAAP). Conditions and context: During the audit, we identified and proposed an adjustment between net assets with donor restrictions and without donor restrictions, which was determined to be material. Cause of condition: This condition was caused by an ongoing misunderstanding around the tracking of assets with donor restrictions and when a release of restriction should occur. Effect of Condition: As a result of this condition, the Club?s accounting records were initially misstated by amounts that were material to the financial statements.
Management has reviewed the audit adjustment recommended by the auditor?s and posted the entry to the Club?s accounting system. The Club implemented new accounting software (MIP Accounting) that exclusively supports non-profit entities. The functionality of this software allows for restriction and grant tracking and reporting with supporting documentation maintained in files. Planned Implementation Date of Corrective Action: Spring 2022 Person Responsible for Corrective Action: Chris Emond, Chief Executive Officer
During compliance testing, it was noted that records did not show support of the distribution of employee?s salary or wages among departments. Context: Of a statical sample of payroll, we noticed a few instances where employees who do work within more than one department did not have a distribution of their hours and pay allocated to the different departments included on their timecards. In other instances, employees worked in a sole department so allocation was not necessary. Cause of condition: The Club received many additional grants due to COVID-19, which the requirements for charging salaries to the grants were unknown. Additionally, the Club?s current controls in place were not appropriate to address the compliance requirement as the Club rarely receives federal grants in which salaries are charged.Effect of Condition: As a result of this condition, the Club?s expenditures charged to the federal grant for salaries lacked adequate compliance documentation. Recommendation: It is recommended that the Club maintain adequate records for salaries charged to federal awards, such as signed timesheets with allocation amounts included.
Show full finding ▾Hide full finding ▴2021-004 ? Payroll Records Federal Agency: U.S. Department of Treasury Cluster Name: Child Care and Development Fund Cluster Program Year: 2021 Assistance Listing Number: 93.575 Compliance: Activities Allowed and Unallowed and Allowable Costs/Cost Principles Finding Type: Significant deficiency in internal controls over compliance Criteria: Management is responsible for maintaining adequate records for salaries charged to federal awards that accurately reflect the work performed. These records must also support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award or on a Federal award and non-Federal award. Condition: During compliance testing, it was noted that records did not show support of the distribution of employee?s salary or wages among departments. Context: Of a statical sample of payroll, we noticed a few instances where employees who do work within more than one department did not have a distribution of their hours and pay allocated to the different departments included on their timecards. In other instances, employees worked in a sole department so allocation was not necessary. Cause of condition: The Club received many additional grants due to COVID-19, which the requirements for charging salaries to the grants were unknown. Additionally, the Club?s current controls in place were not appropriate to address the compliance requirement as the Club rarely receives federal grants in which salaries are charged.Effect of Condition: As a result of this condition, the Club?s expenditures charged to the federal grant for salaries lacked adequate compliance documentation. Recommendation: It is recommended that the Club maintain adequate records for salaries charged to federal awards, such as signed timesheets with allocation amounts included.
In March 2021 the organization switched payroll vendors to ADP. The HR Director and Finance Director have consistently worked closely together during payroll processing. The Finance Director is responsible for submitting payroll. Beginning mid-October 2021, a process was implemented where the Finance Director downloads and emails links to reports for the HR Director to review prior to submitting. After reviewing the HR Director indicates approval via an email response. Those emails are kept for proof of review. This process will be reviewed to verify that any employee working in more than one department and under a federal grant has the proper compliance documentation in their payroll records to support the allocations under the grants. Planned Implementation Date of Corrective Action: Spring 2022 Person Responsible for Corrective Action: Kathy Woodfin, Finance Director
During compliance testing, it was noted that invoices for vendor expenses being charged to the Federal award were not approved by knowledgeable individuals. Context: Of the 60 occurrences tested that were charged to the grants, 47 were missing any type of approval support. Cause of condition: The Club received many additional grants due to COVID-19. Previous to COVID-19 the Club rarely received federal grants. The internal controls of the Club function such that supervisors make purchases within their budgets without express additional approval. Expenditures are reviewed by the accounting department after the fact for inappropriate expenditures. Effect of Condition: As a result of this condition, the Club?s vendor expenditures charged to the federal grant lacked adequate compliance documentation. Recommendation: It is recommended that the Club maintain adequate records for expenditures charged to federal awards, such as an invoice with clear approval and documentation that the expense should be appropriately charged to the grant from the grant manager.
Show full finding ▾Hide full finding ▴2021-005 ? Vendor Records Federal Agency: U.S. Department of Treasury Cluster Name: Child Care and Development Fund Cluster Program Year: 2021 Assistance Listing Number: 93.575 Compliance: Activities Allowed and Unallowed and Allowable Costs/Cost Principles Finding Type: Significant deficiency in internal controls over compliance Criteria: Management is responsible for maintaining adequate records for vendor transactions charged to federal awards that accurately reflect expenses. These records must include an invoice with a signature from a knowledgeable individual approving the expense. Condition: During compliance testing, it was noted that invoices for vendor expenses being charged to the Federal award were not approved by knowledgeable individuals. Context: Of the 60 occurrences tested that were charged to the grants, 47 were missing any type of approval support. Cause of condition: The Club received many additional grants due to COVID-19. Previous to COVID-19 the Club rarely received federal grants. The internal controls of the Club function such that supervisors make purchases within their budgets without express additional approval. Expenditures are reviewed by the accounting department after the fact for inappropriate expenditures. Effect of Condition: As a result of this condition, the Club?s vendor expenditures charged to the federal grant lacked adequate compliance documentation. Recommendation: It is recommended that the Club maintain adequate records for expenditures charged to federal awards, such as an invoice with clear approval and documentation that the expense should be appropriately charged to the grant from the grant manager.
Supervisors are empowered to make purchases within their assigned budgets without additional approval. All purchases are reviewed centrally by the accounting function after purchase. Large and unusual purchases are approved prior to purchase. The Club implemented new accounting software (MIP Accounting) that exclusively supports non-profit entities. The functionality of this software allows for restriction and grant tracking and reporting with supporting documentation maintained in files. Management plans to implement coordination between the Finance and Operations staff to ensure proper approval is documented for all purchases charged to Federal grants. Planned Implementation Date of Corrective Action: Fall 2022, retrospectively to the beginning of the year. Person Responsible for Corrective Action: Kathy Woodfin, Finance Director
During the audit no reporting was readily available for observation or testing. However, based on the effort required to compile expenditures for testing, it appears that reporting was not accurate throughout the year. Context: The client compiled the detail expenditure data for the entire grant of $1,499,566 at the time of the audit. The reporting and submissions for reimbursements was done without this data and not supported by the detailed expenditures, rather the Club assumed the expenditures and submitted reimbursements and reported in three equal payments.Cause of condition: Grant reporting was done by Operations personnel with no support by the Finance and Accounting function to provide actual expenditure date. The Club received many additional grants due to COVID-19. The Club?s current controls in place were not appropriate to address the compliance requirement as the Club rarely receives federal grants. Effect of Condition: As of a resulted of this condition, the Club?s required reporting was materially misstated, however, based on our testing, there was adequate expenditures to charge to the federal awards received. Recommendation: It is recommended that a more thorough review of the prepared final reports is done prior to submission.
Show full finding ▾Hide full finding ▴2021-006 ? Accuracy of Reporting Federal Agency: U.S. Department of Treasury Cluster Name: Child Care and Development Fund Cluster Program Year: 2021 Assistance Listing Number: 93.575 Compliance: Reporting Finding Type: Material weakness in internal controls over compliance Criteria: Management is responsible for submitting timely, accurate reporting based on the terms of the grant agreement. Condition: During the audit no reporting was readily available for observation or testing. However, based on the effort required to compile expenditures for testing, it appears that reporting was not accurate throughout the year. Context: The client compiled the detail expenditure data for the entire grant of $1,499,566 at the time of the audit. The reporting and submissions for reimbursements was done without this data and not supported by the detailed expenditures, rather the Club assumed the expenditures and submitted reimbursements and reported in three equal payments.Cause of condition: Grant reporting was done by Operations personnel with no support by the Finance and Accounting function to provide actual expenditure date. The Club received many additional grants due to COVID-19. The Club?s current controls in place were not appropriate to address the compliance requirement as the Club rarely receives federal grants. Effect of Condition: As of a resulted of this condition, the Club?s required reporting was materially misstated, however, based on our testing, there was adequate expenditures to charge to the federal awards received. Recommendation: It is recommended that a more thorough review of the prepared final reports is done prior to submission.
The Club implemented new accounting software (MIP Accounting) that exclusively supports non-profit entities. The functionality of this software allows for restriction and grant tracking and reporting with supporting documentation maintained in files. Management plans to implement coordination between the Finance and Operations staff to ensure proper reporting. Planned Implementation Date of Corrective Action: Fall 2022 Person Responsible for Corrective Action: Kathy Woodfin, Finance Director
FAC accepted this audit on January 13, 2022 — management decision was due July 13, 2022.
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