BOYS AND GIRLS CLUB OF PORTLAND METROPOLITAN AREANon-Profit

Management's ResponseThe Organization agrees with the auditor?s findings. One of the immediate observations made by the new finance team in January 2022 was the inconsistent procedure for processing and documenting purchase orders. As a result, purchase orders were not accurately completed, approval signatures were missing on purchase orders, and there were no checks and balances to ensure purchase orders were approved before issuing checks. Yet, checks were still being issued.Effective January 2022, the purchase order procedure was changed, and checks and balances were installed. All purchase orders and invoices had to be properly completed before checks are issued and mailed. Checks and balances are in place to ensure compliance.The following actions were taken:1. All purchase orders have numbers on each Form and are distributed, tracked, and monitored for completion by Finance. Any purchase order out of sequence with what is being tracked is not honored and is investigated. This control procedure avoids duplication and someone completing a purchase order that has not been recorded and distributed by Finance.2. All purchase orders and vendor invoices must be supported by proper documentation or source documents to support the requested expenditure payment.3. All purchase orders must identify the requester, be approved by the immediate supervisor, and accompany the proper documentation for the expenditure.4. Purchase Orders are reviewed and checked for accuracy by the payables accountant before entering them into our books and records.5. Purchase Orders that are not correctly completed are not entered into the financial system until corrected.6. The check register that catalogs the checks to be paid must be supported by properly completed purchase orders and vendor invoices to be paid. The CFO reviews the check register with supporting purchase orders/vendor invoices before signing off on the check register, signing the checks, and then submitting them to the CEO for his signature before the checks are mailed.7. Finance conducted two training sessions with employees to review the purchase order procedure and to stress the need for accurately completed purchase orders. We will continue to conduct staff training centered on following proper financial procedures to ensure the highest level of compliance, especially as related to purchasing orders and issuing checks.So, several checks and balances are in place as standard operating procedures to ensure proper documentation of all expenditures for the organization and grants. As a result, the Organization has strengthened its internal controls. In addition, the Organization no longer writes and releases any checks without documented approval of the purchase order and vendor invoice. Corrective actions have been implemented.Completion DateJanuary 2022

Management's ResponseUntimely grant reporting was another area of concern for the new finance leadership team. A significant contributor to the delay in submitting or filing late grant reports on time was directly related to receiving timely and accurate financial information from Finance to Development. Grant reports cannot be submitted without the supporting financial information from Finance.1. The Organization has created a spreadsheet/database with key federal contractrequirements and deadlines. This document is called the Grants Management Check List and includes all the pertinent information related to all federal and other grants.2. The Checklist is reviewed monthly in a regular meetings between Finance and Development to review, monitor, and discuss grant program requirements that need to be addressed.As a result of these monthly meetings, utilizing the Grant Check List, we can monitor our progress in meeting grant reporting requirements and provide timely financial information to Development, so these reports on all federal and other grants are submitted on time and in compliance with grant requirements. We have made significant progress in catching up on most of the grant reporting based on implementing the above procedures. We have communicated with our funding agency and one final report is planned to be submitted by August 31, 2022. At that point, all grant reports will be current.Anticipated Completion DateAugust 2022

Management?s ResponseGrant billings for federal contracts and others are now based on actual and not budgeted time. Each employee working on a federal grant is made aware of their allocated percentages of work they can dedicate to a federal and another grant. Prior to each payroll period, the employee submits this information on their electronic time sheets. It is monitored by payroll, the grants manager, and finance to track the time charged to each federal grant compared to the grant award.So, employees are allocated a percentage of their time for actual work performed for each grant that can be charged to the grant. The monitoring of these timesheets by human resources, the grants manager, and Finance provides for accurate billing for each federal grant and is based on actual costs, not budgeted costs.Also, in August 2022, Finance, Development, and Human Resources began implementing an online timesheet tracking system utilizing ADP where actual payroll costs will be allocated consistent with the grant allocation for each federal and other grants.Anticipated Completion DateAugust 2022