FAC Explorer

Audit 298150

FY End
2023-09-30
Total Expended
$885,206
Findings
16
Programs
6
Organization: Pillars, Inc. (WI)
Year: 2023 Accepted: 2024-03-26
Auditor: Kerberrose Sc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
385053 2023-001 Material Weakness Yes P
385054 2023-001 Material Weakness Yes P
385055 2023-001 Material Weakness Yes P
385056 2023-001 Material Weakness Yes P
385057 2023-002 Material Weakness Yes P
385058 2023-002 Material Weakness Yes P
385059 2023-002 Material Weakness Yes P
385060 2023-002 Material Weakness Yes P
961495 2023-001 Material Weakness Yes P
961496 2023-001 Material Weakness Yes P
961497 2023-001 Material Weakness Yes P
961498 2023-001 Material Weakness Yes P
961499 2023-002 Material Weakness Yes P
961500 2023-002 Material Weakness Yes P
961501 2023-002 Material Weakness Yes P
961502 2023-002 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $202,568 Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $174,350 - 0
93.150 Projects for Assistance in Transition From Homelessness (path) $108,895 - 0
14.231 Emergency Solutions Grant Program $97,196 - 0
97.024 Emergency Food and Shelter National Board Program $61,315 - 0
14.218 Community Development Block Grants/entitlement Grants $7,000 Yes 2

Contacts

Name Title Type
DKKLKT1RJG26 Lisa Strandberg Auditee
9207349192 Jamie Rosin Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation 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. De Minimis Rate Used: N Rate Explanation: The Organization did not us the 10% de minimis cost rate. The accompanying schedule of expenditures of federal and state awards includes the federal and state award activity of Pillars, Inc. under programs of the federal and state government for the year ended September 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a select portion of the operations of Pillars, Inc., it is not intended to, and does not, present the financial position, changes in net position or cash flows of Pillars, Inc.
Title: Summary of Significant Accounting Policies 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. De Minimis Rate Used: N Rate Explanation: The Organization did not us the 10% de minimis cost rate. 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.
Title: Indirect Cost Rate 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. De Minimis Rate Used: N Rate Explanation: The Organization did not us the 10% de minimis cost rate. Pillars, Inc. did not use the 10% de minimis cost rate.
Title: Subrecipients 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. De Minimis Rate Used: N Rate Explanation: The Organization did not us the 10% de minimis cost rate. Pillars, Inc. did not have any subrecipient expenditures.

Finding Details

Finding 2023-001
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles (GAAP) including all required disclosures. Condition: Absence of personnel with the sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles. Cause: Due to the small size of the Organization and the limited number of accounting personnel, no individual is skilled in the preparation of financial statements in accordance with generally accepted accounting principles including all required notes. Effect: During the course of our audit, we prepared the financial statements; however, management of the Organization thoroughly reviewed them and accepted responsibility for their completeness and accuracy. Recommendation: Continue to use the services of the external audit firm to prepare the Organization’s financial statements in accordance with generally accepted accounting principles. Management's Response: The Organization agrees with the finding. It will continue to use its external auditors to prepare its financial statements. Management will continue to thoroughly review and accept responsibility for the completeness and accuracy of the financial statements.
Finding 2023-001
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles (GAAP) including all required disclosures. Condition: Absence of personnel with the sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles. Cause: Due to the small size of the Organization and the limited number of accounting personnel, no individual is skilled in the preparation of financial statements in accordance with generally accepted accounting principles including all required notes. Effect: During the course of our audit, we prepared the financial statements; however, management of the Organization thoroughly reviewed them and accepted responsibility for their completeness and accuracy. Recommendation: Continue to use the services of the external audit firm to prepare the Organization’s financial statements in accordance with generally accepted accounting principles. Management's Response: The Organization agrees with the finding. It will continue to use its external auditors to prepare its financial statements. Management will continue to thoroughly review and accept responsibility for the completeness and accuracy of the financial statements.
Finding 2023-001
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles (GAAP) including all required disclosures. Condition: Absence of personnel with the sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles. Cause: Due to the small size of the Organization and the limited number of accounting personnel, no individual is skilled in the preparation of financial statements in accordance with generally accepted accounting principles including all required notes. Effect: During the course of our audit, we prepared the financial statements; however, management of the Organization thoroughly reviewed them and accepted responsibility for their completeness and accuracy. Recommendation: Continue to use the services of the external audit firm to prepare the Organization’s financial statements in accordance with generally accepted accounting principles. Management's Response: The Organization agrees with the finding. It will continue to use its external auditors to prepare its financial statements. Management will continue to thoroughly review and accept responsibility for the completeness and accuracy of the financial statements.
Finding 2023-001
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles (GAAP) including all required disclosures. Condition: Absence of personnel with the sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles. Cause: Due to the small size of the Organization and the limited number of accounting personnel, no individual is skilled in the preparation of financial statements in accordance with generally accepted accounting principles including all required notes. Effect: During the course of our audit, we prepared the financial statements; however, management of the Organization thoroughly reviewed them and accepted responsibility for their completeness and accuracy. Recommendation: Continue to use the services of the external audit firm to prepare the Organization’s financial statements in accordance with generally accepted accounting principles. Management's Response: The Organization agrees with the finding. It will continue to use its external auditors to prepare its financial statements. Management will continue to thoroughly review and accept responsibility for the completeness and accuracy of the financial statements.
Finding 2023-002
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to record financial information in accordance with GAAP. Condition: During our audit, we identified and proposed fifteen journal entries to various general ledger accounts, which were approved and posted by management. Of the fifteen journal entries proposed and accepted by management, three were material to the financial statements as a whole. Cause: Due to the size of the Organization, limited number of accounting personnel, and turnover in key accounting personnel, the Organization missed adjustments in recording financial information in accordance with GAAP. Effect: The effect of improper accounting during the year is that management could be reviewing materially incorrect financial information. Recommendation: Recommendation The Organization should consider providing additional training to staff who records financial information. We also recommend the accounts be reconciled on a monthly basis. Management's Response: The Organization agrees with the finding. During the 2023 fiscal audit, there was turnover in the finance position which slowed the response to this finding. The Organization has engaged an external consultant other than its auditor, to modify before 2024’s fiscal year-end its policies and procedures around fixed asset management and capitalization to eliminate the need for one major material journal entry that has been handled by its auditors year after year. The Organization also will ensure that a monthly account reconciliation process is in place and adhered to by 2024 fiscal year-end.
Finding 2023-002
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to record financial information in accordance with GAAP. Condition: During our audit, we identified and proposed fifteen journal entries to various general ledger accounts, which were approved and posted by management. Of the fifteen journal entries proposed and accepted by management, three were material to the financial statements as a whole. Cause: Due to the size of the Organization, limited number of accounting personnel, and turnover in key accounting personnel, the Organization missed adjustments in recording financial information in accordance with GAAP. Effect: The effect of improper accounting during the year is that management could be reviewing materially incorrect financial information. Recommendation: Recommendation The Organization should consider providing additional training to staff who records financial information. We also recommend the accounts be reconciled on a monthly basis. Management's Response: The Organization agrees with the finding. During the 2023 fiscal audit, there was turnover in the finance position which slowed the response to this finding. The Organization has engaged an external consultant other than its auditor, to modify before 2024’s fiscal year-end its policies and procedures around fixed asset management and capitalization to eliminate the need for one major material journal entry that has been handled by its auditors year after year. The Organization also will ensure that a monthly account reconciliation process is in place and adhered to by 2024 fiscal year-end.
Finding 2023-002
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to record financial information in accordance with GAAP. Condition: During our audit, we identified and proposed fifteen journal entries to various general ledger accounts, which were approved and posted by management. Of the fifteen journal entries proposed and accepted by management, three were material to the financial statements as a whole. Cause: Due to the size of the Organization, limited number of accounting personnel, and turnover in key accounting personnel, the Organization missed adjustments in recording financial information in accordance with GAAP. Effect: The effect of improper accounting during the year is that management could be reviewing materially incorrect financial information. Recommendation: Recommendation The Organization should consider providing additional training to staff who records financial information. We also recommend the accounts be reconciled on a monthly basis. Management's Response: The Organization agrees with the finding. During the 2023 fiscal audit, there was turnover in the finance position which slowed the response to this finding. The Organization has engaged an external consultant other than its auditor, to modify before 2024’s fiscal year-end its policies and procedures around fixed asset management and capitalization to eliminate the need for one major material journal entry that has been handled by its auditors year after year. The Organization also will ensure that a monthly account reconciliation process is in place and adhered to by 2024 fiscal year-end.
Finding 2023-002
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to record financial information in accordance with GAAP. Condition: During our audit, we identified and proposed fifteen journal entries to various general ledger accounts, which were approved and posted by management. Of the fifteen journal entries proposed and accepted by management, three were material to the financial statements as a whole. Cause: Due to the size of the Organization, limited number of accounting personnel, and turnover in key accounting personnel, the Organization missed adjustments in recording financial information in accordance with GAAP. Effect: The effect of improper accounting during the year is that management could be reviewing materially incorrect financial information. Recommendation: Recommendation The Organization should consider providing additional training to staff who records financial information. We also recommend the accounts be reconciled on a monthly basis. Management's Response: The Organization agrees with the finding. During the 2023 fiscal audit, there was turnover in the finance position which slowed the response to this finding. The Organization has engaged an external consultant other than its auditor, to modify before 2024’s fiscal year-end its policies and procedures around fixed asset management and capitalization to eliminate the need for one major material journal entry that has been handled by its auditors year after year. The Organization also will ensure that a monthly account reconciliation process is in place and adhered to by 2024 fiscal year-end.
Finding 2023-001
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles (GAAP) including all required disclosures. Condition: Absence of personnel with the sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles. Cause: Due to the small size of the Organization and the limited number of accounting personnel, no individual is skilled in the preparation of financial statements in accordance with generally accepted accounting principles including all required notes. Effect: During the course of our audit, we prepared the financial statements; however, management of the Organization thoroughly reviewed them and accepted responsibility for their completeness and accuracy. Recommendation: Continue to use the services of the external audit firm to prepare the Organization’s financial statements in accordance with generally accepted accounting principles. Management's Response: The Organization agrees with the finding. It will continue to use its external auditors to prepare its financial statements. Management will continue to thoroughly review and accept responsibility for the completeness and accuracy of the financial statements.
Finding 2023-001
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles (GAAP) including all required disclosures. Condition: Absence of personnel with the sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles. Cause: Due to the small size of the Organization and the limited number of accounting personnel, no individual is skilled in the preparation of financial statements in accordance with generally accepted accounting principles including all required notes. Effect: During the course of our audit, we prepared the financial statements; however, management of the Organization thoroughly reviewed them and accepted responsibility for their completeness and accuracy. Recommendation: Continue to use the services of the external audit firm to prepare the Organization’s financial statements in accordance with generally accepted accounting principles. Management's Response: The Organization agrees with the finding. It will continue to use its external auditors to prepare its financial statements. Management will continue to thoroughly review and accept responsibility for the completeness and accuracy of the financial statements.
Finding 2023-001
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles (GAAP) including all required disclosures. Condition: Absence of personnel with the sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles. Cause: Due to the small size of the Organization and the limited number of accounting personnel, no individual is skilled in the preparation of financial statements in accordance with generally accepted accounting principles including all required notes. Effect: During the course of our audit, we prepared the financial statements; however, management of the Organization thoroughly reviewed them and accepted responsibility for their completeness and accuracy. Recommendation: Continue to use the services of the external audit firm to prepare the Organization’s financial statements in accordance with generally accepted accounting principles. Management's Response: The Organization agrees with the finding. It will continue to use its external auditors to prepare its financial statements. Management will continue to thoroughly review and accept responsibility for the completeness and accuracy of the financial statements.
Finding 2023-001
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles (GAAP) including all required disclosures. Condition: Absence of personnel with the sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles. Cause: Due to the small size of the Organization and the limited number of accounting personnel, no individual is skilled in the preparation of financial statements in accordance with generally accepted accounting principles including all required notes. Effect: During the course of our audit, we prepared the financial statements; however, management of the Organization thoroughly reviewed them and accepted responsibility for their completeness and accuracy. Recommendation: Continue to use the services of the external audit firm to prepare the Organization’s financial statements in accordance with generally accepted accounting principles. Management's Response: The Organization agrees with the finding. It will continue to use its external auditors to prepare its financial statements. Management will continue to thoroughly review and accept responsibility for the completeness and accuracy of the financial statements.
Finding 2023-002
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to record financial information in accordance with GAAP. Condition: During our audit, we identified and proposed fifteen journal entries to various general ledger accounts, which were approved and posted by management. Of the fifteen journal entries proposed and accepted by management, three were material to the financial statements as a whole. Cause: Due to the size of the Organization, limited number of accounting personnel, and turnover in key accounting personnel, the Organization missed adjustments in recording financial information in accordance with GAAP. Effect: The effect of improper accounting during the year is that management could be reviewing materially incorrect financial information. Recommendation: Recommendation The Organization should consider providing additional training to staff who records financial information. We also recommend the accounts be reconciled on a monthly basis. Management's Response: The Organization agrees with the finding. During the 2023 fiscal audit, there was turnover in the finance position which slowed the response to this finding. The Organization has engaged an external consultant other than its auditor, to modify before 2024’s fiscal year-end its policies and procedures around fixed asset management and capitalization to eliminate the need for one major material journal entry that has been handled by its auditors year after year. The Organization also will ensure that a monthly account reconciliation process is in place and adhered to by 2024 fiscal year-end.
Finding 2023-002
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to record financial information in accordance with GAAP. Condition: During our audit, we identified and proposed fifteen journal entries to various general ledger accounts, which were approved and posted by management. Of the fifteen journal entries proposed and accepted by management, three were material to the financial statements as a whole. Cause: Due to the size of the Organization, limited number of accounting personnel, and turnover in key accounting personnel, the Organization missed adjustments in recording financial information in accordance with GAAP. Effect: The effect of improper accounting during the year is that management could be reviewing materially incorrect financial information. Recommendation: Recommendation The Organization should consider providing additional training to staff who records financial information. We also recommend the accounts be reconciled on a monthly basis. Management's Response: The Organization agrees with the finding. During the 2023 fiscal audit, there was turnover in the finance position which slowed the response to this finding. The Organization has engaged an external consultant other than its auditor, to modify before 2024’s fiscal year-end its policies and procedures around fixed asset management and capitalization to eliminate the need for one major material journal entry that has been handled by its auditors year after year. The Organization also will ensure that a monthly account reconciliation process is in place and adhered to by 2024 fiscal year-end.
Finding 2023-002
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to record financial information in accordance with GAAP. Condition: During our audit, we identified and proposed fifteen journal entries to various general ledger accounts, which were approved and posted by management. Of the fifteen journal entries proposed and accepted by management, three were material to the financial statements as a whole. Cause: Due to the size of the Organization, limited number of accounting personnel, and turnover in key accounting personnel, the Organization missed adjustments in recording financial information in accordance with GAAP. Effect: The effect of improper accounting during the year is that management could be reviewing materially incorrect financial information. Recommendation: Recommendation The Organization should consider providing additional training to staff who records financial information. We also recommend the accounts be reconciled on a monthly basis. Management's Response: The Organization agrees with the finding. During the 2023 fiscal audit, there was turnover in the finance position which slowed the response to this finding. The Organization has engaged an external consultant other than its auditor, to modify before 2024’s fiscal year-end its policies and procedures around fixed asset management and capitalization to eliminate the need for one major material journal entry that has been handled by its auditors year after year. The Organization also will ensure that a monthly account reconciliation process is in place and adhered to by 2024 fiscal year-end.
Finding 2023-002
Criteria: Internal control systems should include personnel with sufficient education, training and/or experience to record financial information in accordance with GAAP. Condition: During our audit, we identified and proposed fifteen journal entries to various general ledger accounts, which were approved and posted by management. Of the fifteen journal entries proposed and accepted by management, three were material to the financial statements as a whole. Cause: Due to the size of the Organization, limited number of accounting personnel, and turnover in key accounting personnel, the Organization missed adjustments in recording financial information in accordance with GAAP. Effect: The effect of improper accounting during the year is that management could be reviewing materially incorrect financial information. Recommendation: Recommendation The Organization should consider providing additional training to staff who records financial information. We also recommend the accounts be reconciled on a monthly basis. Management's Response: The Organization agrees with the finding. During the 2023 fiscal audit, there was turnover in the finance position which slowed the response to this finding. The Organization has engaged an external consultant other than its auditor, to modify before 2024’s fiscal year-end its policies and procedures around fixed asset management and capitalization to eliminate the need for one major material journal entry that has been handled by its auditors year after year. The Organization also will ensure that a monthly account reconciliation process is in place and adhered to by 2024 fiscal year-end.