THE BOYS & GIRLS CLUBS OF WEBER-DAVISNon-Profit

2025-001 – Significant Deficiency on internal controls over eligibility compliance Condition: The eligibility of attendees to receive benefits from Temporary Assistance for Needy Family (TANF) funds was not sufficient and did not prevent, detect, or correct instances of noncompliance that constitute a significant deficiency. Criteria: For children to be eligible to benefit from TANF funds, the household income of the child’s residence must not exceed 85% of the state median income. Utah Department of Workforce Services is the pass-through entity for TANF funds to Boys & Girls Club of Weber-Davis. Cause: Boys & Girls Club of Weber-Davis was not actively evaluating if attendees met the threshold required by TANF and were primarily relying on the fact that attendees of Boys & Girls Club of Weber-Davis are primarily those attending Title I schools. To qualify as a Title I school, there must be a certain level of attending students living in poverty but students may attend the school who are not living in poverty. The other information to determine an attendee’s eligibility would be the demographic information collected by Boys & Girls Club of Weber-Davis to compare to the 85% median income threshold. Information comparison to this threshold was not collected for new students that were participating in Boys & Girls Club of Weber-Davis to determine that a child who attends is eligible to receive the benefit of TANF funds. Effect: In a sample of 60 attendees, there were 14 noted instances where the compliance was unknown. This is due to the lack of information collected by Boys & Girls Clubs of Weber-Davis, where demographic information for an attendee as not collected or available upon request. The benefit provided by TANF funds in the form of supplies purchases, administrative costs, wage reimbursements, and other items was not determinable in providing services to attendees. As such, the costs for each attendee were determined to be an average based upon the total TANF expenditures and the total number of attendees at Boys & Girls Club of Weber-Davis over the 2025 fiscal year. Recommendation: We recommend that Boys & Girls Club of Weber-Davis update the demographic information collected from its attendees and keep a closer eye on eligibility requirements for grants they receive. Management’s Response: Management has committed to implementing our recommendation for the future.

2021-02: Effective internal controls over Activities Allowed and Allowable Costs of Federal Programs (material weakness) Criteria: The Uniform Guidance states that entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statues, regulations, and the terms and conditions of the federal awards. Condition: While controls over financial transactions do exist, there is a lack of controls over the Activities Allowed and Allowable Costs specific to the payroll expenditures over federal program with which the funds are being expended. Cause: Limited number of staff members has prevented the establishment of controls over the federal program and some controls over those program compliance requirements had not been considered. Effect: No known impact, the expenditures of federal awards could be made for unallowable activities and costs. Recommendation: We recommend a documented control be put in place to oversee and authorize the payroll disbursements over the federal programs in accordance with the grant documents. Management?s Response: Management agrees with the recommendation and can implement new controls over these payroll processes.