Audit 20014

FY End
2022-12-31
Total Expended
$1.73M
Findings
12
Programs
2
Organization: Beacon, Inc. (IN)
Year: 2022 Accepted: 2023-09-27
Auditor: Blue and CO LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
25780 2022-001 Material Weakness Yes BL
25781 2022-002 Material Weakness Yes BL
25782 2022-001 Material Weakness Yes BL
25783 2022-002 Material Weakness Yes BL
25784 2022-001 Material Weakness Yes BL
25785 2022-002 Material Weakness Yes BL
602222 2022-001 Material Weakness Yes BL
602223 2022-002 Material Weakness Yes BL
602224 2022-001 Material Weakness Yes BL
602225 2022-002 Material Weakness Yes BL
602226 2022-001 Material Weakness Yes BL
602227 2022-002 Material Weakness Yes BL

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $373,929 Yes 2
14.231 Emergency Solutions Grant Program $8,625 - 0

Contacts

Name Title Type
NYQGS4MRE6Z6 Ian Forrest Gilmore Auditee
8123345734 Jason Terwilliger Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the SEFA are reported on the modified cash basis of accounting; consequently, certain expenses and purchases of assets are recognized when cash is disbursed rather than when the obligation is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not available or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable; however, no funds were passed through to subrecipients in 2022. The organization has not adopted a de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards modified cash basis (SEFA) includes the federal grant activity of the organization under programs of the federal government as of and for the year ended December 31, 2022. The information in the SEFA is presented in accordance with the requirements of Title 2 of the United States Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of Beacon, it is not intended to and does not present the financial position or changes in net assets of the organization.

Finding Details

2022-001: Accounting capacity (previously reported as 2021-001) Condition Several areas of Beacon, Inc.?s operations require significant accounting time, effort or expertise that Beacon, Inc. has not committed. The same or greater level of capability would be needed to prepare the financial statements. Criteria A complete system of internal control includes the ability to properly recognize all accounting matters on a routine basis. It also includes the ability to prepare a materially complete and correct set of financial statements, including all required disclosure items typically found in the footnotes of the audited financial statements. Cause Adequate efforts have not been devoted to Beacon, Inc.?s accounting processes because management believes that the cost of doing so outweighs the benefits and because these matters can be effectively determined in conjunction with the annual independent audit and other year-end analysis. Effect Errors or incomplete reporting could occur without timely detection. Recommendation Beacon, Inc. should be watchful and cognizant of occasions to make incremental improvements as they are practical to do so. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. The current economics of the organization do not allow for us to correct this weakness. We believe our current accounting capacity is sufficient for routine day to day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
2022-002: Accounting software system (previously reported as 2021-002) Condition Beacon, Inc. utilizes QuickBooks as its accounting system. This system has significant advantages, including cost and ease of use; it also has certain weaknesses, including the possibility that records could be altered without timely detection by management. Criteria An effective system of internal control includes permanency in accounting records that precludes the possibility of changes to previously recorded transactions except where approved and subject to oversight. Cause Beacon, Inc. selected this accounting package because of its reasonable cost and ease of use. Effect Errors or unauthorized changes could occur without timely detection by management. Recommendation Management should consider implementing oversight where it is possible and practical to do so to reduce potential for error or unauthorized changes. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. Beacon, Inc. utilizes QuickBooks as its accounting system because of its ease of use and its capability to fulfill the needs of the organization. A more robust system is cost-prohibitive for a small organization. In order to ensure that management is made aware of any unauthorized changes in a timely manner, Beacon, Inc. shall implement procedures within its monthly reconciliation and closing process to review cumulative financial balances and audit trail reports for any changes made to previously reported totals. Beacon, Inc. will also close each accounting year within QuickBooks after the annual audit so that changes to prior year audited financial information are unable to be made without management approval.
2022-001: Accounting capacity (previously reported as 2021-001) Condition Several areas of Beacon, Inc.?s operations require significant accounting time, effort or expertise that Beacon, Inc. has not committed. The same or greater level of capability would be needed to prepare the financial statements. Criteria A complete system of internal control includes the ability to properly recognize all accounting matters on a routine basis. It also includes the ability to prepare a materially complete and correct set of financial statements, including all required disclosure items typically found in the footnotes of the audited financial statements. Cause Adequate efforts have not been devoted to Beacon, Inc.?s accounting processes because management believes that the cost of doing so outweighs the benefits and because these matters can be effectively determined in conjunction with the annual independent audit and other year-end analysis. Effect Errors or incomplete reporting could occur without timely detection. Recommendation Beacon, Inc. should be watchful and cognizant of occasions to make incremental improvements as they are practical to do so. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. The current economics of the organization do not allow for us to correct this weakness. We believe our current accounting capacity is sufficient for routine day to day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
2022-002: Accounting software system (previously reported as 2021-002) Condition Beacon, Inc. utilizes QuickBooks as its accounting system. This system has significant advantages, including cost and ease of use; it also has certain weaknesses, including the possibility that records could be altered without timely detection by management. Criteria An effective system of internal control includes permanency in accounting records that precludes the possibility of changes to previously recorded transactions except where approved and subject to oversight. Cause Beacon, Inc. selected this accounting package because of its reasonable cost and ease of use. Effect Errors or unauthorized changes could occur without timely detection by management. Recommendation Management should consider implementing oversight where it is possible and practical to do so to reduce potential for error or unauthorized changes. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. Beacon, Inc. utilizes QuickBooks as its accounting system because of its ease of use and its capability to fulfill the needs of the organization. A more robust system is cost-prohibitive for a small organization. In order to ensure that management is made aware of any unauthorized changes in a timely manner, Beacon, Inc. shall implement procedures within its monthly reconciliation and closing process to review cumulative financial balances and audit trail reports for any changes made to previously reported totals. Beacon, Inc. will also close each accounting year within QuickBooks after the annual audit so that changes to prior year audited financial information are unable to be made without management approval.
2022-001: Accounting capacity (previously reported as 2021-001) Condition Several areas of Beacon, Inc.?s operations require significant accounting time, effort or expertise that Beacon, Inc. has not committed. The same or greater level of capability would be needed to prepare the financial statements. Criteria A complete system of internal control includes the ability to properly recognize all accounting matters on a routine basis. It also includes the ability to prepare a materially complete and correct set of financial statements, including all required disclosure items typically found in the footnotes of the audited financial statements. Cause Adequate efforts have not been devoted to Beacon, Inc.?s accounting processes because management believes that the cost of doing so outweighs the benefits and because these matters can be effectively determined in conjunction with the annual independent audit and other year-end analysis. Effect Errors or incomplete reporting could occur without timely detection. Recommendation Beacon, Inc. should be watchful and cognizant of occasions to make incremental improvements as they are practical to do so. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. The current economics of the organization do not allow for us to correct this weakness. We believe our current accounting capacity is sufficient for routine day to day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
2022-002: Accounting software system (previously reported as 2021-002) Condition Beacon, Inc. utilizes QuickBooks as its accounting system. This system has significant advantages, including cost and ease of use; it also has certain weaknesses, including the possibility that records could be altered without timely detection by management. Criteria An effective system of internal control includes permanency in accounting records that precludes the possibility of changes to previously recorded transactions except where approved and subject to oversight. Cause Beacon, Inc. selected this accounting package because of its reasonable cost and ease of use. Effect Errors or unauthorized changes could occur without timely detection by management. Recommendation Management should consider implementing oversight where it is possible and practical to do so to reduce potential for error or unauthorized changes. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. Beacon, Inc. utilizes QuickBooks as its accounting system because of its ease of use and its capability to fulfill the needs of the organization. A more robust system is cost-prohibitive for a small organization. In order to ensure that management is made aware of any unauthorized changes in a timely manner, Beacon, Inc. shall implement procedures within its monthly reconciliation and closing process to review cumulative financial balances and audit trail reports for any changes made to previously reported totals. Beacon, Inc. will also close each accounting year within QuickBooks after the annual audit so that changes to prior year audited financial information are unable to be made without management approval.
2022-001: Accounting capacity (previously reported as 2021-001) Condition Several areas of Beacon, Inc.?s operations require significant accounting time, effort or expertise that Beacon, Inc. has not committed. The same or greater level of capability would be needed to prepare the financial statements. Criteria A complete system of internal control includes the ability to properly recognize all accounting matters on a routine basis. It also includes the ability to prepare a materially complete and correct set of financial statements, including all required disclosure items typically found in the footnotes of the audited financial statements. Cause Adequate efforts have not been devoted to Beacon, Inc.?s accounting processes because management believes that the cost of doing so outweighs the benefits and because these matters can be effectively determined in conjunction with the annual independent audit and other year-end analysis. Effect Errors or incomplete reporting could occur without timely detection. Recommendation Beacon, Inc. should be watchful and cognizant of occasions to make incremental improvements as they are practical to do so. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. The current economics of the organization do not allow for us to correct this weakness. We believe our current accounting capacity is sufficient for routine day to day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
2022-002: Accounting software system (previously reported as 2021-002) Condition Beacon, Inc. utilizes QuickBooks as its accounting system. This system has significant advantages, including cost and ease of use; it also has certain weaknesses, including the possibility that records could be altered without timely detection by management. Criteria An effective system of internal control includes permanency in accounting records that precludes the possibility of changes to previously recorded transactions except where approved and subject to oversight. Cause Beacon, Inc. selected this accounting package because of its reasonable cost and ease of use. Effect Errors or unauthorized changes could occur without timely detection by management. Recommendation Management should consider implementing oversight where it is possible and practical to do so to reduce potential for error or unauthorized changes. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. Beacon, Inc. utilizes QuickBooks as its accounting system because of its ease of use and its capability to fulfill the needs of the organization. A more robust system is cost-prohibitive for a small organization. In order to ensure that management is made aware of any unauthorized changes in a timely manner, Beacon, Inc. shall implement procedures within its monthly reconciliation and closing process to review cumulative financial balances and audit trail reports for any changes made to previously reported totals. Beacon, Inc. will also close each accounting year within QuickBooks after the annual audit so that changes to prior year audited financial information are unable to be made without management approval.
2022-001: Accounting capacity (previously reported as 2021-001) Condition Several areas of Beacon, Inc.?s operations require significant accounting time, effort or expertise that Beacon, Inc. has not committed. The same or greater level of capability would be needed to prepare the financial statements. Criteria A complete system of internal control includes the ability to properly recognize all accounting matters on a routine basis. It also includes the ability to prepare a materially complete and correct set of financial statements, including all required disclosure items typically found in the footnotes of the audited financial statements. Cause Adequate efforts have not been devoted to Beacon, Inc.?s accounting processes because management believes that the cost of doing so outweighs the benefits and because these matters can be effectively determined in conjunction with the annual independent audit and other year-end analysis. Effect Errors or incomplete reporting could occur without timely detection. Recommendation Beacon, Inc. should be watchful and cognizant of occasions to make incremental improvements as they are practical to do so. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. The current economics of the organization do not allow for us to correct this weakness. We believe our current accounting capacity is sufficient for routine day to day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
2022-002: Accounting software system (previously reported as 2021-002) Condition Beacon, Inc. utilizes QuickBooks as its accounting system. This system has significant advantages, including cost and ease of use; it also has certain weaknesses, including the possibility that records could be altered without timely detection by management. Criteria An effective system of internal control includes permanency in accounting records that precludes the possibility of changes to previously recorded transactions except where approved and subject to oversight. Cause Beacon, Inc. selected this accounting package because of its reasonable cost and ease of use. Effect Errors or unauthorized changes could occur without timely detection by management. Recommendation Management should consider implementing oversight where it is possible and practical to do so to reduce potential for error or unauthorized changes. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. Beacon, Inc. utilizes QuickBooks as its accounting system because of its ease of use and its capability to fulfill the needs of the organization. A more robust system is cost-prohibitive for a small organization. In order to ensure that management is made aware of any unauthorized changes in a timely manner, Beacon, Inc. shall implement procedures within its monthly reconciliation and closing process to review cumulative financial balances and audit trail reports for any changes made to previously reported totals. Beacon, Inc. will also close each accounting year within QuickBooks after the annual audit so that changes to prior year audited financial information are unable to be made without management approval.
2022-001: Accounting capacity (previously reported as 2021-001) Condition Several areas of Beacon, Inc.?s operations require significant accounting time, effort or expertise that Beacon, Inc. has not committed. The same or greater level of capability would be needed to prepare the financial statements. Criteria A complete system of internal control includes the ability to properly recognize all accounting matters on a routine basis. It also includes the ability to prepare a materially complete and correct set of financial statements, including all required disclosure items typically found in the footnotes of the audited financial statements. Cause Adequate efforts have not been devoted to Beacon, Inc.?s accounting processes because management believes that the cost of doing so outweighs the benefits and because these matters can be effectively determined in conjunction with the annual independent audit and other year-end analysis. Effect Errors or incomplete reporting could occur without timely detection. Recommendation Beacon, Inc. should be watchful and cognizant of occasions to make incremental improvements as they are practical to do so. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. The current economics of the organization do not allow for us to correct this weakness. We believe our current accounting capacity is sufficient for routine day to day needs. We will continue to seek outside guidance through our annual independent audit to correct minor errors that sometimes occur or to perform other accounting needs.
2022-002: Accounting software system (previously reported as 2021-002) Condition Beacon, Inc. utilizes QuickBooks as its accounting system. This system has significant advantages, including cost and ease of use; it also has certain weaknesses, including the possibility that records could be altered without timely detection by management. Criteria An effective system of internal control includes permanency in accounting records that precludes the possibility of changes to previously recorded transactions except where approved and subject to oversight. Cause Beacon, Inc. selected this accounting package because of its reasonable cost and ease of use. Effect Errors or unauthorized changes could occur without timely detection by management. Recommendation Management should consider implementing oversight where it is possible and practical to do so to reduce potential for error or unauthorized changes. Views of Responsible Officials and Planned Corrective Actions Management concurs with the reported finding. Beacon, Inc. utilizes QuickBooks as its accounting system because of its ease of use and its capability to fulfill the needs of the organization. A more robust system is cost-prohibitive for a small organization. In order to ensure that management is made aware of any unauthorized changes in a timely manner, Beacon, Inc. shall implement procedures within its monthly reconciliation and closing process to review cumulative financial balances and audit trail reports for any changes made to previously reported totals. Beacon, Inc. will also close each accounting year within QuickBooks after the annual audit so that changes to prior year audited financial information are unable to be made without management approval.