BOYS & GIRLS CLUBS OF DUMPLIN VALLEYNon-Profit

Boys and Girls Club of Dumplin Valley respectfully submits the follow corrective action plan for the year ended December 31, 2023. Purkey, Carter, Compton, Swann, & Carter, PLLC P.O. Box 727 Morristown, TN 37815 Audit period: January 1, 2023 – December 31, 2023 The finding from the schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the number assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include the finding and is not addressed. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAMS AUDIT FINDING NO. 2023-001: The Organization did not timely submit audited financial statements to the Office of Management and Budget (OMB). Criteria: The Organization is required to submit audited financial statements to OMB 30 days after the date of the auditor’s report, or nine months after the fiscal year end, whichever comes first. Cause of Condition: The Organization did not have systems in place to submit the audited financial statements within the required time period. Recommendation: Auditor recommends management implement systems to ensure audited financial statements are submitted to OMB within the required time period. Action Taken: In 2022, the Organization received a funding award of $1.2 million in ARPA from the Tennessee Department of Human Services (DHS). However, the Organization did not receive any reimbursements until 2024. During this period, the Organization was holding and waiting for reimbursements, which required readjusting funds throughout the year. Additionally, the funds moved the Organization into the Single Audit category, which is rare for the Organization. To remedy these findings and improve our financial management processes in the future, we have implemented new systems and procedures. These include: · Enhanced Financial Tracking: The Organization has adopted a more robust financial tracking system to monitor fund allocations and reimbursements more effectively. · Regular Financial Reviews: The Organization will conduct quarterly financial reviews to ensure timely adjustments and avoid significant disruptions. · Improved Communication with Funding Agencies: The Organization has established a dedicated team to maintain regular communication with funding agencies to expedite the reimbursement process. · Timely Submission of Audited Financial Statements: The Organization has put systems in place to ensure that audited financial statements are submitted to the Office of Management and Budget within the required time period. This includes setting internal deadlines and reminders to meet the 30 day submission requirement after the issuance of the auditor’s report or none months after the fiscal year end, whichever comes first. · Audit Preparation: The Organization will commit to providing all necessary audit items to auditors in the first quarter of each year moving forward. These measures are designed to ensure better financial stability and compliance, preventing similar issues in the future. Very truly yours, Christina Baker-Smith, Chief Administrative Officer Boys and Girls Club of Dumplin Valley