Boys & Girls Club of Jefferson CityNon-Profit

Recommendation: We recommend that the Board of Directors be aware of the internal control deficiencies over financial reporting. And, if possible, implement procedures to ensure that the Organization has the expertise necessary to prevent, detect and correct misstatements and be capable of drafting the financial statements, related footnote disclosures and SEFA in accordance with the accounting principles generally accepted in the United States of America (U.S. GAAP).

Views of responsible officials and planned corrective actions: The Board believes it has personnel who possess suitable skill, knowledge, or experience to oversee services the auditor provides in assisting with financial statement presentation which requires a lower level of technical knowledge than the competence required to prepare the financial statements, related footnote disclosures and SEFA in accordance with the accrual basis of accounting.

Views of responsible officials and planned corrective actions: The Board believes it has personnel who possess suitable skill, knowledge, or experience to oversee services the auditor provides in assisting with financial statement presentation which requires a lower level of technical knowledge than the competence required to prepare the financial statements, related footnote disclosures and SEFA in accordance with the accrual basis of accounting.

Significant Deficiencies 2021-001 Internal Control Over Preparation of Financial Statements, Related Footnote Disclosures, and Schedule of Expenditures of Federal Awards Criteria: Pursuant to SAS 115, Communicating Internal Control Related Matters Identified in an Audit, which affected the Organization for the year ended June 30, 2021, we are required to report on whether the Organization is able to prepare financial statements, related footnote disclosures, and schedule of expenditures of federal awards (SEFA) in accordance with the accrual basis method of accounting. The preparation of financial statements, related footnote disclosures, and schedule of expenditures of federal awards (SEFA) requires internal controls over preventing, detecting and correcting misstatements of the accounting data, and drafting financial statements, related footnote disclosures and SEFA.Condition: The Organization?s ability to prepare financial statements, related footnote disclosures, and schedule of expenditures of federal awards in accordance with the accrual basis method of accounting is based, in part, on its reliance of the external auditors, who cannot by definition be considered part of the Organization?s internal controls. Context: The Organization has relied on its independent external auditors to assist in the drafting of the financial statements, related footnote disclosures, and schedule of expenditures of federal awards in accordance with the accrual basis method of accounting. Effect: With respect to ensuring that there are no misstatements or omissions that would be considered to be significant to the financial statements, related footnote disclosures and SEFA, the Organization relies on its external auditors for assistance with the accrual basis method of accounting. Cause of Condition: In evaluating the control environment of the Organization, we considered the abilities of the Organization?s accountant, and though proficient in recording daily transactions, did not demonstrate abilities we considered necessary to prevent, detect and correct misstatements, or the ability to draft the financial statements, related footnote disclosures and SEFA in accordance with the accrual basis method of accounting. Recommendation: We recommend that the Board of Directors be aware of the internal control deficiencies over financial reporting. And, if possible, implement procedures to ensure that the Organization has the expertise necessary to prevent, detect and correct misstatements and be capable of drafting the financial statements, related footnote disclosures and SEFA in accordance with the accrual basis method of accounting. Views of responsible officials and planned corrective actions: The Board believes it has personnel who possess suitable skill, knowledge, or experience to oversee services the auditor provides in assisting with financial statement presentation which requires a lower level of technical knowledge than the competence required to prepare the financial statements, related footnote disclosures and SEFA in accordance with the accrual basis of accounting.

2019-001 Internal Control Over Preparation of Financial Statements, Related Footnote Disclosures, and Schedule of Expenditures of Federal Awards Criteria: Pursuant to SAS 115, Communicating Internal Control Related Matters Identified in an Audit, which affected the Organization for the year ended June 30, 2019, we are required to report on whether the Organization is able to prepare financial statements, related footnote disclosures, and schedule of expenditures of federal awards (SEFA) in accordance with the accrual basis method of accounting. The preparation of financial statements, related footnote disclosures, and schedule of expenditures of federal awards (SEFA) requires internal controls over preventing, detecting and correcting misstatements of the accounting data, and drafting financial statements, related footnote disclosures and SEFA.Condition: The Organization?s ability to prepare financial statements, related footnote disclosures, and schedule of expenditures of federal awards in accordance with the accrual basis method of accounting is based, in part, on its reliance of the external auditors, who cannot by definition be considered part of the Organization?s internal controls. Context: The Organization has relied on its independent external auditors to assist in the drafting of the financial statements, related footnote disclosures, and schedule of expenditures of federal awards in accordance with the accrual basis method of accounting. Effect: With respect to ensuring that there are no misstatements or omissions that would be considered to be significant to the financial statements, related footnote disclosures and SEFA, the Organization relies on its external auditors for assistance with the accrual basis method of accounting. Cause of Condition: In evaluating the control environment of the Organization, we considered the abilities of the Organization?s accountant, and though proficient in recording daily transactions, did not demonstrate abilities we considered necessary to prevent, detect and correct misstatements, or the ability to draft the financial statements, related footnote disclosures and SEFA in accordance with the accrual basis method of accounting. Recommendation: We recommend that the Board of Directors be aware of the internal control deficiencies over financial reporting. And, if possible, implement procedures to ensure that the Organization has the expertise necessary to prevent, detect and correct misstatements and be capable of drafting the financial statements, related footnote disclosures and SEFA in accordance with the accrual basis method of accounting. Views of responsible officials and planned corrective actions: The Board believes it has personnel who possess suitable skill, knowledge, or experience to oversee services the auditor provides in assisting with financial statement presentation which requires a lower level of technical knowledge than the competence required to prepare the financial statements, related footnote disclosures and SEFA in accordance with the accrual basis of accounting.

2019-002 Segregation of Duties Criteria: Segregation of duties encompasses assigning the responsibility for authorizing transactions, recording transactions, and maintaining custody of assets to different people within the Organization. The basic premise is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition: The Organization has a lack of segregation of duties. Context: During our consideration of internal control over financial reporting we noted employees who had access to physical assets and the related accounting records, or to all phases of a transaction. Effect: There is an increased risk to the Organization of loss or errors in recording transactions, safeguarding assets and financial statement reporting. Cause of Condition: There is limited staff available to fully segregate duties. Recommendation: Although the small size of the Organization?s accounting staff limits the extent of segregation of duties, we believe certain steps could be taken to separate incompatible duties. Views of Responsible Officials and Planned Correction: The Board concurs with the recommendations that Boys & Girls Club of Jefferson City would be best served by segregating fiscal duties as outlined above. The Board of Directors will remain involved in the financial affairs of the Organization to provide oversight and independent review functions. Since fiscal year end, Boys & Girls Club of Jefferson City has contracted an outside accounting firm to alleviate the concern of segregation of duties.