BOYS & GIRLS CLUBS OF CASCADE COUNTYNon-Profit

FINDING #2020-001 COVID Coronavirus Relief Funding CFDA 21.019 Child Nutrition Cluster CFDA 10.559, 10.555, 10.558, 10.560 Twenty-First Century Community Learning Centers CFDA 84.287 Juvenile Mentoring Program CFDA 16.726 Juvenile Justice Delinquency Prevention CFDA 16.540 Demonstration Projects for Indian Health CFDA 93.933 Criteria: The auditee must prepare the schedule of expenditures of federal awards (SEFA) for the period covered by the auditee?s financial statements. In accordance with the Uniform Guidance, 2 CFR 200.510(b), the SEFA must include the total amount of federal awards expended. Condition: Our audit identified a material weakness in controls over the preparation of the SEFA, which is supplementary information required by the federal government. The recorded expenditures for all federal grants and awards were inaccurately reported and three grants were omitted entirely. Context: The Child Nutrition Cluster Grants and the Coronavirus Relief Fund Grant passed through by the Little Shell Tribe were omitted from the SEFA for a total underreporting of federal expenditures of $226,149. A grant from the U.S. Department of Health and Human Services for 2021 was incorrectly reported on the 2020 SEFA for an overstatement of federal expenditures of $74,424. All other grants had various inaccurate amounts reported for a total overreporting of federal expenditures of $142,858 for those grants. Effect: Non-compliance with the Uniform Guidance regarding SEFA presentation. The client corrected the SEFA and it is accurately presented in the report. Questioned Costs: None. Cause: Unknown. Recommendation: We recommend the Organization strengthen internal controls over the preparation of the SEFA to ensure accurate presentation of expenditures. Organization?s Response: Boys and Girls Clubs of Cascade County have been receiving Federal funding since its inception. Typically, the organization has received Federal Funding under the threshold required for the single audit criteria. During the audit year 2020, the organizations' threshold for Federal Funding increased due to the Coronavirus support for Nonprofits requiring a Single Audit. The Auditing firm helped us to better understand the SEFA by providing an initial draft of the required fields. The Boys and Girls Club management team, consisting of the Executive Director, Bookkeeper, and Grants management personnel, continued to fill in the SEFA. Throughout the exchange of emails, both the organization and the Auditing Firm asked questions and adjusted the document. The Boys and Girls Club was unaware that we were omitting information or overstating information during the various email exchanges. The final draft that was sent did indeed have ALL of the Federal Funding listed and listed correctly. Corrective Action: After careful review and a better understanding of the process required for a Single Audit and the SEFA, the Boys and Girls Clubs of Cascade County will collect the data at the time of each Federal Award and place it in a spreadsheet labeled SEFA. The Grants Management personnel will ensure the Bookkeeper has the required information for the spreadsheet, and the Executive Director will review the spreadsheet quarterly to ensure compliance. Corrective action will begin immediately beginning on October 1, 2021, and will be reviewed quarterly by the Executive Director to ensure compliance.