Audit 291569

Federal Program: Block Grants for Prevention and Treatment of Substance Abuse ‐ 93.959 2023-001: Year End Closing Schedule – Timely Reconciliations: Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year‐end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year‐end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year‐end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management’s or the auditor’s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Current status: During the year ending June 30, 2023, the Organization made significant improvements in its implementation of closing procedures. However, due to limited staffing resources the Organization should continue to improve the accuracy and execution of such procedures. Management Response: Management Response: As a result of our growth and increased budget, we approved an additional finance staff person at the October 2023 Board meeting. We are currently using a temporary employee while we hire. In addition, we have moved our investments to an investment firm to make coordination of information easier and more readily available. We have created a centralized file system to store audit documentation as it is available during the year and enhanced our closing checklist.

Federal Program: Block Grants for Prevention and Treatment of Substance Abuse ‐ 93.959 2023-001: Year End Closing Schedule – Timely Reconciliations: Criteria: Timely preparation of account reconciliations is essential to producing accurate and relevant financial reports. Condition: During the audit a number of adjusting journal entries were proposed by both the audit team and management. These entries were to adjust errors or to reflect year‐end accruals. Cause: Existing closing procedures should be reviewed and updated to ensure that they are properly followed in producing timely reports and reducing year‐end adjustments. Effect: The results were delays in producing reconciliations, account analyses and other financial reports needed by management and the auditors. Recommendation: We believe that the year‐end closing could proceed more quickly by incorporating a closing schedule that indicates who will perform each procedure and when completion of each procedure is due and accomplished. The timing of specific procedures could be coordinated with the timing of management’s or the auditor’s need for information. All reconciliations should be prepared and reviewed by those informed of such matters to ensure accuracy. Current status: During the year ending June 30, 2023, the Organization made significant improvements in its implementation of closing procedures. However, due to limited staffing resources the Organization should continue to improve the accuracy and execution of such procedures. Management Response: Management Response: As a result of our growth and increased budget, we approved an additional finance staff person at the October 2023 Board meeting. We are currently using a temporary employee while we hire. In addition, we have moved our investments to an investment firm to make coordination of information easier and more readily available. We have created a centralized file system to store audit documentation as it is available during the year and enhanced our closing checklist.