Audit 22592

FY End
2022-06-30
Total Expended
$3.20M
Findings
20
Programs
6
Organization: Chrysalis Center, Inc. (CT)
Year: 2022 Accepted: 2022-12-04
Auditor: Whittlesey PC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
22472 2022-001 Significant Deficiency - P
22473 2022-001 Significant Deficiency - P
22474 2022-001 Significant Deficiency - P
22475 2022-001 Significant Deficiency - P
22476 2022-001 Significant Deficiency - P
22477 2022-001 Significant Deficiency - P
22478 2022-001 Significant Deficiency - P
22479 2022-001 Significant Deficiency - P
22480 2022-001 Significant Deficiency - P
22481 2022-001 Significant Deficiency - P
598914 2022-001 Significant Deficiency - P
598915 2022-001 Significant Deficiency - P
598916 2022-001 Significant Deficiency - P
598917 2022-001 Significant Deficiency - P
598918 2022-001 Significant Deficiency - P
598919 2022-001 Significant Deficiency - P
598920 2022-001 Significant Deficiency - P
598921 2022-001 Significant Deficiency - P
598922 2022-001 Significant Deficiency - P
598923 2022-001 Significant Deficiency - P

Programs

Contacts

Name Title Type
JU4PK524NPM9 Wendy Briere Auditee
8602634431 Edward Engberg Auditor
No contacts on file

Notes to SEFA

Title: PASS-THROUGH STATE AGENCIES Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Chrysalis Center, Inc. made no payments to subrecipients in the fiscal year ended June 30, 2022. De Minimis Rate Used: N Rate Explanation: Chrysalis Center Inc. has not elected the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures of federal awards passed through state agencies is based on information provided by the State of Connecticut Office of Policy and Management.

Finding Details

Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.
Finding No. 2022-001 ? Timely review over cash and financial reporting Criteria Management is responsible for the design, implementation, and maintenance of internal controls over financial reporting. Condition Cash reconciliations were not reviewed timely. As a result, an unreconciled difference was carried for several months and across two fiscal years. In addition, accounting performed by a third-party property management company relating to real estate activity was not reviewed timely for accuracy and completeness. Effect Adjusting journal entries were required at June 30, 2022 to correct misstatements noted. Cause The unreconciled difference on the monthly cash reconciliations was originally believed to be a software issue and was not investigated further. There was no manual reconciliation performed. The third-party management company recorded operating activity but did not properly account for all development activity. The third party management company is dependent on management to provide the necessary adjustments to the real estate general ledgers. The third-party management company was not involved in development matters at the properties and defers to management for the proper accounting of that activity. Recommendation Management should review and resolve all unreconciled differences on bank statements in a timely manner. If errors are caused by general ledger software issues, then a manual reconciliation should be performed. Management should also timely review all real estate activity against related partnership, operating and development agreements and expectations. Reporting Views of Responsible Officials Management will ensure that bank statements and all real estate activities are reviewed timely each month.