BOYS AND GIRLS CLUBSOF THE COASTAL PLAIN, INC.

Preparation of the Schedule of Expenditures of Federal Awards. Federal Program Information: Child and Adult Care Food Program (Federal Assistance Listing #10.558) and the Twenty-First Century Community Centers Program (Federal Assistance Listing #84.287C) Condition and Criteria: The Schedule of Expenditures of Federal Awards (“SEFA”) is prepared using source information other than the financial reports generated by the accounting system. As a result, the Organization’s internally prepared SEFA did not agree to the Organization’s financial records. Prior Year Audit Finding: 2022-002 Cause and Effect: The SEFA was prepared based on information obtained outside of the accounting system due to the complexity of tracking the various expenditures by funding source within the accounting system. This could result in an incomplete or inaccurate SEFA. Context: This represents a systemic problem. Questioned Costs: None. Recommendation: Total expenditures reported on the SEFA are compiled through reviewing draw down reports and estimated spending amounts. These amounts do not always tie out to financial information in the accounting system due to the complexity of tracking the federal grant expenditures by funding source. Therefore, we recommend management create a reconciliation of the financial information maintained obtained outside of the accounting system and the accounting system in order to ensure all federal expenditures are included and reported accurately on the SEFA. Management’s Response: Management has determined it is not practical to enter all expenditures into the accounting software by fund source, and tracks the data outside of the accounting software. Management will continue to search for alternatives for entry into the accounting software which are financially feasible.

Preparation of the Schedule of Expenditures of Federal Awards. Federal Program Information: Child and Adult Care Food Program (Federal Assistance Listing ? 10.558) Condition and Criteria: The Schedule of Expenditures of Federal Awards (SEFA) is prepared using source information other than the financial reports generated by the accounting system. As a result, the Organization's internally prepared SEFA did not agree to the Organization's financial records. Prior Year Audit Finding: N/A Cause and Effect: The SEFA was prepared and reconciled to the amount of cash drawdowns for the year rather than total expenditures incurred for the year. This could result in a material misstatement in the SEFA. Context: This represents a systemic problem. Questioned Costs: None.Recommendation: The SEFA should be prepared and reconciled to the general ledger by an employee knowledgeable of the grant activity for the year. Someone other than the preparer should review the SEFA for accuracy and completeness to identify any errors and maintain proper internal controls over the preparation of the SEFA. Management?s Response: Management has hired an individual who specializes in federal programs who will be responsible for reviewing the SEFA in the future.