Criteria – A good system of internal controls contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion.
Condition – The limited number of staff of Listening House does not facilitate the segregation of duties necessary to achieve a low level.
Cause – Listening House’s size and budget constraints limit the number of personnel and does not allow.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – Yes.
Recommendation – Management, the contract accountant, and the Board of Listening House should remain involved on the financial affairs of Listening House on a regular basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation.
Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of Listening House.
Responsible party for the corrective action – Molly Jalma, Co-Executive Director
Criteria – A good system of internal controls contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion.
Condition – The limited number of staff of Listening House does not facilitate the segregation of duties necessary to achieve a low level.
Cause – Listening House’s size and budget constraints limit the number of personnel and does not allow.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – Yes.
Recommendation – Management, the contract accountant, and the Board of Listening House should remain involved on the financial affairs of Listening House on a regular basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation.
Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of Listening House.
Responsible party for the corrective action – Molly Jalma, Co-Executive Director
Criteria – Organizations are required to maintain their accounting records in accordance with generally accepted accounting principles (GAAP).
Condition – During the audit, significant adjusting entries were proposed and made:
• to record the interest expense for the SBA loan in the amount of $29,000.
• to record $44,000 receivable for revenue
• to record $330,000 of in-kind contributions received
Cause – There was a breakdown in the internal controls over the review of internal financial statements.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – No.
Recommendation – Management and the board should establish a process for regular review of its consolidated financial statements with its contracted accountant to ensure activity is recorded in accordance with GAAP.
Auditee's comments and response – Management and its contracted accounting staff will monitor financial reports and activities of Listening House to ensure proper recording.
Responsible party for the corrective action – Molly Jalma, Co-Executive Director
Criteria – Organizations are required to maintain their accounting records in accordance with generally accepted accounting principles (GAAP).
Condition – During the audit, significant adjusting entries were proposed and made:
• to record the interest expense for the SBA loan in the amount of $29,000.
• to record $44,000 receivable for revenue
• to record $330,000 of in-kind contributions received
Cause – There was a breakdown in the internal controls over the review of internal financial statements.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – No.
Recommendation – Management and the board should establish a process for regular review of its consolidated financial statements with its contracted accountant to ensure activity is recorded in accordance with GAAP.
Auditee's comments and response – Management and its contracted accounting staff will monitor financial reports and activities of Listening House to ensure proper recording.
Responsible party for the corrective action – Molly Jalma, Co-Executive Director
Criteria – A good system of internal controls contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion.
Condition – The limited number of staff of Listening House does not facilitate the segregation of duties necessary to achieve a low level.
Cause – Listening House’s size and budget constraints limit the number of personnel and does not allow.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – Yes.
Recommendation – Management, the contract accountant, and the Board of Listening House should remain involved on the financial affairs of Listening House on a regular basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation.
Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of Listening House.
Responsible party for the corrective action – Molly Jalma, Co-Executive Director
Criteria – A good system of internal controls contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion.
Condition – The limited number of staff of Listening House does not facilitate the segregation of duties necessary to achieve a low level.
Cause – Listening House’s size and budget constraints limit the number of personnel and does not allow.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – Yes.
Recommendation – Management, the contract accountant, and the Board of Listening House should remain involved on the financial affairs of Listening House on a regular basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation.
Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of Listening House.
Responsible party for the corrective action – Molly Jalma, Co-Executive Director
Criteria – Organizations are required to maintain their accounting records in accordance with generally accepted accounting principles (GAAP).
Condition – During the audit, significant adjusting entries were proposed and made:
• to record the interest expense for the SBA loan in the amount of $29,000.
• to record $44,000 receivable for revenue
• to record $330,000 of in-kind contributions received
Cause – There was a breakdown in the internal controls over the review of internal financial statements.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – No.
Recommendation – Management and the board should establish a process for regular review of its consolidated financial statements with its contracted accountant to ensure activity is recorded in accordance with GAAP.
Auditee's comments and response – Management and its contracted accounting staff will monitor financial reports and activities of Listening House to ensure proper recording.
Responsible party for the corrective action – Molly Jalma, Co-Executive Director
Criteria – Organizations are required to maintain their accounting records in accordance with generally accepted accounting principles (GAAP).
Condition – During the audit, significant adjusting entries were proposed and made:
• to record the interest expense for the SBA loan in the amount of $29,000.
• to record $44,000 receivable for revenue
• to record $330,000 of in-kind contributions received
Cause – There was a breakdown in the internal controls over the review of internal financial statements.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – No.
Recommendation – Management and the board should establish a process for regular review of its consolidated financial statements with its contracted accountant to ensure activity is recorded in accordance with GAAP.
Auditee's comments and response – Management and its contracted accounting staff will monitor financial reports and activities of Listening House to ensure proper recording.
Responsible party for the corrective action – Molly Jalma, Co-Executive Director