FAC Explorer

Audit 309609

FY End
2023-06-30
Total Expended
$1.40M
Findings
2
Programs
2
Organization: Indiana Public Broadcasting Stations, Inc. (IN)
Year: 2023 Accepted: 2024-06-24
Auditor: Dulin Ward & Dewald INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401658 2023-001 Material Weakness Yes P
978100 2023-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
84.425D Education Stabilization Fund (esf) - Esser $900,592 Yes 1
84.425C Education Stabilization Fund (esf) - Geer I $502,138 Yes 0

Contacts

Name Title Type
QNNNJLLMZMB9 Mark Newman Auditee
3178286983 Carrie Minnich 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 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Indiana Public Broadcasting Stations, Inc. under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit REquirements for Fedreal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
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 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
2023-001 Material Adjustment Criteria: Management is responsible for preparing financial statements in accordance with Generally Accepted Accounting Principles. Condition: Insufficient controls over financial reporting. A material audit adjustment was required to prevent the financial statements from being materially misstated. Cause: No invoice was recorded as an accounts payable when received but payment was applied against accounts payable. As a result, current year expenses were understated. Effect: Could result in undetected errors and irregularities and misstated interim financial reports. The risk with this condition is that necessary adjustments to the financial statements to record material misstatements may be missed and there is no control in place to detect and correct this condition. Questioned Costs: None noted. Recommendation: Improve internal controls to prevent these types of adjustments. Ensure process in place to include all fiscal year activity as of end of year. Views of Responsible Officials and Planned Corrective Actions: We agree with the auditor's findings and subsequent adjustment. Due to the change in accounting software and lack of experience utilizing the new software, the Accounting Director made a data entry error when recording a payable and did not realize it on subsequent reporting. The recommended adjustment is legitimate and in accordance with GAAP accounting policy. It was an isolated incident and has been corrected. As there will be a change in accounting services and software for the upcoming fiscal year, we do not expect this to be an issue going forward.
Finding 2023-001
2023-001 Material Adjustment Criteria: Management is responsible for preparing financial statements in accordance with Generally Accepted Accounting Principles. Condition: Insufficient controls over financial reporting. A material audit adjustment was required to prevent the financial statements from being materially misstated. Cause: No invoice was recorded as an accounts payable when received but payment was applied against accounts payable. As a result, current year expenses were understated. Effect: Could result in undetected errors and irregularities and misstated interim financial reports. The risk with this condition is that necessary adjustments to the financial statements to record material misstatements may be missed and there is no control in place to detect and correct this condition. Questioned Costs: None noted. Recommendation: Improve internal controls to prevent these types of adjustments. Ensure process in place to include all fiscal year activity as of end of year. Views of Responsible Officials and Planned Corrective Actions: We agree with the auditor's findings and subsequent adjustment. Due to the change in accounting software and lack of experience utilizing the new software, the Accounting Director made a data entry error when recording a payable and did not realize it on subsequent reporting. The recommended adjustment is legitimate and in accordance with GAAP accounting policy. It was an isolated incident and has been corrected. As there will be a change in accounting services and software for the upcoming fiscal year, we do not expect this to be an issue going forward.