Audit 301879

2023-003 SEGREGATION OF DUTIES All Federal Programs Prior Year Findings Number 2022-001 The Organization did not maintain segregation of accounting duties, including those related to federal programs (See 2023-001). 2023-001 SEGREGATION OF DUTIES Prior Year Finding Number 2022-001 Criteria Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the Organization’s financial statements. Condition We noted individuals had the ability to access cash receipts, prepare checks for mailing to vendors, record transactions to the Organization’s financial accounting system and complete bank reconciliations. In order to have proper segregation of duties no one individual should be performing all of these duties. The Organization adopted new policies and procedures related to segregation of duties that were put in place at the end of the current fiscal year. Cause The Organization has a limited number of employees that possess the amount of financial knowledge necessary to perform the financial accounting duties of the Organization. Effect Inadequate segregation of duties could adversely affect the Organization’s ability to prevent or detect and correct misstatements, errors or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation The Organization should review its control activities to obtain the maximum internal control possible under the circumstances. The Organization should continue to utilize the new policies and procedures to achieve the maximum segregation of duties possible. Response The MPO has developed and follows a segregation of duties policy as outlined in the Financial Roles and Responsibilities Policy of the MPO’s Policies and Procedures Handbook. This policy makes clear the separate roles that each the Accountant, Office Manager, and Executive Director play in financial-related activities. This policy was reviewed by both the MPO Finance Subcommittee and the MPO’s auditor. Furthermore, the MPO’s Financial Subcommittee and Executive Committee now review the financial statements monthly before they are presented to the Policy Committee for approval. Conclusion Response accepted.

2023-003 SEGREGATION OF DUTIES All Federal Programs Prior Year Findings Number 2022-001 The Organization did not maintain segregation of accounting duties, including those related to federal programs (See 2023-001). 2023-001 SEGREGATION OF DUTIES Prior Year Finding Number 2022-001 Criteria Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the Organization’s financial statements. Condition We noted individuals had the ability to access cash receipts, prepare checks for mailing to vendors, record transactions to the Organization’s financial accounting system and complete bank reconciliations. In order to have proper segregation of duties no one individual should be performing all of these duties. The Organization adopted new policies and procedures related to segregation of duties that were put in place at the end of the current fiscal year. Cause The Organization has a limited number of employees that possess the amount of financial knowledge necessary to perform the financial accounting duties of the Organization. Effect Inadequate segregation of duties could adversely affect the Organization’s ability to prevent or detect and correct misstatements, errors or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation The Organization should review its control activities to obtain the maximum internal control possible under the circumstances. The Organization should continue to utilize the new policies and procedures to achieve the maximum segregation of duties possible. Response The MPO has developed and follows a segregation of duties policy as outlined in the Financial Roles and Responsibilities Policy of the MPO’s Policies and Procedures Handbook. This policy makes clear the separate roles that each the Accountant, Office Manager, and Executive Director play in financial-related activities. This policy was reviewed by both the MPO Finance Subcommittee and the MPO’s auditor. Furthermore, the MPO’s Financial Subcommittee and Executive Committee now review the financial statements monthly before they are presented to the Policy Committee for approval. Conclusion Response accepted.

2023-004 FINANCIAL REPORTING Assistance Living Number 20.933 The Organization did not properly record expenditures related to the federal program. 2023-002 FINANCIAL REPORTING Prior Year Finding Number 2022-002 Criteria A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements of the financial statement of a timely basis. Properly designed policies and procedures and implementation of the policies and procedures are an integral part of ensuring the reliability and accuracy of the Organization’s financial statements. Condition Significant year-end adjusting entries were not properly recorded in the Organization’s financial statements primarily related to the receivables and payables for the Water Trails Project. Adjustments were subsequently made by the Organization to properly include these amounts in the financial statements. Cause Reporting financial data reliably in accordance with generally accepted accounting principles requires management to possess sufficient knowledge and training to select and apply accounting principles and prepare financial statements including footnote disclosures. Management presently lacks the proper procedures to identify year-end accruals for receivables and payables. Effect Lack of proper procedures for preparing financial statements resulted in Organization employees not detecting the errors in the normal course of performing their assigned functions. As a result, material adjustments to the Organization’s financial statements were necessary. Recommendation Management should continue to work on year-end closing procedures to properly identify receivables and payables at June 30. The Organization should continue to utilize accounting staff to assist with the financial accounting system entries and bank reconciliations. Response The MPO hired an in-house accountant at the beginning of FY 2023 who has been responsible for recordings. The Accountant has received training in QuickBooks and also has worked with accounting/auditing professionals to both clean up past recording errors and to improve practices moving forward. Conclusion Response accepted.

2023-003 SEGREGATION OF DUTIES All Federal Programs Prior Year Findings Number 2022-001 The Organization did not maintain segregation of accounting duties, including those related to federal programs (See 2023-001). 2023-001 SEGREGATION OF DUTIES Prior Year Finding Number 2022-001 Criteria Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the Organization’s financial statements. Condition We noted individuals had the ability to access cash receipts, prepare checks for mailing to vendors, record transactions to the Organization’s financial accounting system and complete bank reconciliations. In order to have proper segregation of duties no one individual should be performing all of these duties. The Organization adopted new policies and procedures related to segregation of duties that were put in place at the end of the current fiscal year. Cause The Organization has a limited number of employees that possess the amount of financial knowledge necessary to perform the financial accounting duties of the Organization. Effect Inadequate segregation of duties could adversely affect the Organization’s ability to prevent or detect and correct misstatements, errors or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation The Organization should review its control activities to obtain the maximum internal control possible under the circumstances. The Organization should continue to utilize the new policies and procedures to achieve the maximum segregation of duties possible. Response The MPO has developed and follows a segregation of duties policy as outlined in the Financial Roles and Responsibilities Policy of the MPO’s Policies and Procedures Handbook. This policy makes clear the separate roles that each the Accountant, Office Manager, and Executive Director play in financial-related activities. This policy was reviewed by both the MPO Finance Subcommittee and the MPO’s auditor. Furthermore, the MPO’s Financial Subcommittee and Executive Committee now review the financial statements monthly before they are presented to the Policy Committee for approval. Conclusion Response accepted.

2023-003 SEGREGATION OF DUTIES All Federal Programs Prior Year Findings Number 2022-001 The Organization did not maintain segregation of accounting duties, including those related to federal programs (See 2023-001). 2023-001 SEGREGATION OF DUTIES Prior Year Finding Number 2022-001 Criteria Management is responsible for establishing and maintaining internal control. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from its inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under the control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the Organization’s financial statements. Condition We noted individuals had the ability to access cash receipts, prepare checks for mailing to vendors, record transactions to the Organization’s financial accounting system and complete bank reconciliations. In order to have proper segregation of duties no one individual should be performing all of these duties. The Organization adopted new policies and procedures related to segregation of duties that were put in place at the end of the current fiscal year. Cause The Organization has a limited number of employees that possess the amount of financial knowledge necessary to perform the financial accounting duties of the Organization. Effect Inadequate segregation of duties could adversely affect the Organization’s ability to prevent or detect and correct misstatements, errors or misappropriation on a timely basis by employees in the normal course of performing their assigned functions. Recommendation The Organization should review its control activities to obtain the maximum internal control possible under the circumstances. The Organization should continue to utilize the new policies and procedures to achieve the maximum segregation of duties possible. Response The MPO has developed and follows a segregation of duties policy as outlined in the Financial Roles and Responsibilities Policy of the MPO’s Policies and Procedures Handbook. This policy makes clear the separate roles that each the Accountant, Office Manager, and Executive Director play in financial-related activities. This policy was reviewed by both the MPO Finance Subcommittee and the MPO’s auditor. Furthermore, the MPO’s Financial Subcommittee and Executive Committee now review the financial statements monthly before they are presented to the Policy Committee for approval. Conclusion Response accepted.

2023-004 FINANCIAL REPORTING Assistance Living Number 20.933 The Organization did not properly record expenditures related to the federal program. 2023-002 FINANCIAL REPORTING Prior Year Finding Number 2022-002 Criteria A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements of the financial statement of a timely basis. Properly designed policies and procedures and implementation of the policies and procedures are an integral part of ensuring the reliability and accuracy of the Organization’s financial statements. Condition Significant year-end adjusting entries were not properly recorded in the Organization’s financial statements primarily related to the receivables and payables for the Water Trails Project. Adjustments were subsequently made by the Organization to properly include these amounts in the financial statements. Cause Reporting financial data reliably in accordance with generally accepted accounting principles requires management to possess sufficient knowledge and training to select and apply accounting principles and prepare financial statements including footnote disclosures. Management presently lacks the proper procedures to identify year-end accruals for receivables and payables. Effect Lack of proper procedures for preparing financial statements resulted in Organization employees not detecting the errors in the normal course of performing their assigned functions. As a result, material adjustments to the Organization’s financial statements were necessary. Recommendation Management should continue to work on year-end closing procedures to properly identify receivables and payables at June 30. The Organization should continue to utilize accounting staff to assist with the financial accounting system entries and bank reconciliations. Response The MPO hired an in-house accountant at the beginning of FY 2023 who has been responsible for recordings. The Accountant has received training in QuickBooks and also has worked with accounting/auditing professionals to both clean up past recording errors and to improve practices moving forward. Conclusion Response accepted.