Finding 2023-001 Year-End Close Process/Account Reconciliations
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management
system of each non-Federal entity must provide for effective control over, and accountability for, all
funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and
assure that they are used solely for authorized purposes.
Condition: The fiscal year-end schedules supporting various asset and liability accounts were
incorrectly prepared and required revision, resulting in significant adjustments to NEW's unaudited
financial statements. Multiple trial balances were received throughout the audit process. A significant
amount of time was spent by management during the audit process reconciling accounts resulting in
an audit delay. The delay resulted in additional audit work performed after the original end date of the
initial field work. These issues most likely resulted in management and the Board reviewing unreliable
internal financial information throughout the year, and this also represents a deficiency in adhering to
NEW's internal control policies and procedures.
Cause: A proper internal controls process, which would include a supervisory review and approval
process (with physical or electronic evidence of such a process), was not in place during the fiscal
year under audit.Effect or Potential Effect: Significant adjustments were proposed by management during the audit.
Additionally, any internal financial statements produced by management during the year (and as of
fiscal year-end) were not properly stated in relation to the financial statements taken as a whole (and
therefore could not be relied upon).
Questioned Costs: None
Context: Our audit procedures consisted of an initial review of the financial statements and related
supporting schedules, which led to management having to perform multiple subsequent reviews (and
corrections) following attempts to correct earlier provided schedules and financial statements. The
condition noted is deemed to be systematic in nature.
Identification as a Repeat Finding, if Applicable: Finding 2022-001
Recommendation: We recommend that NEW ensure that each account is properly reconciled on a
monthly basis.
Finding 2023-002: Support for Schedule of Expenditures of Federal Awards in the Accounting
System
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the
auditee must be able to identify all Federal awards received and expenses and the Federal programs
under which they were received.
Condition: Detailed invoices were available to support the amounts reported on the Schedule of
Expenditures of Federal Awards (SEFA), however the expenses had not been accurately classified
by award within the general ledger. It is not possible to extract a program income statement to
support the expenditures reported for each program from the accounting system.
Cause: Although they do have categories set up by program, NEW was not tracking the charges
reimbursed by the Federal Government separately within the general ledger.
Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information
within the accounting system, there is an increased potential for inaccurate reporting.
Questioned Costs: Indeterminable
Context: The account structure was not set up to track the expenses charged to the Federal
Government.
Identification as a Repeat Finding, if Applicable: Finding 2022-002
Recommendation: We recommend that NEW ensure that support for the Schedule of Expenditures
of Federal Awards (SEFA) can be extracted from the accounting system (i.e. a program income
statement).
Finding 2023-003: Suspension and Debarment
Federal Programs: ALN 14.235
Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific
requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure
the organization is not conducting business with excluded parties (as defined by the U.S.
Government); the screening must be documented in writing.
Condition: During the fiscal year, NEW did not consistently perform the screening process for its
potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that
were paid with Federal funds.
Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but
did not adhere to its policy and retain documentation of screenings, during the fiscal year.
Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors,
subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently
provided to parties deemed to be suspended or disbarred by the United States Government.
Questioned Costs: Indeterminable
Context: Payments were made during the fiscal year without performing the proper screening
process. Our audit work in this area consisted of internal control testwork over a random sample of
expenditures, as well as substantive testwork over transactions above a defined threshold from
select expense accounts that were charged to the Federal program. We consider our samples to be
representative of the respective populations, and thus, are statistically valid samples. The issue is
deemed to be systemic.
Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001, 2022-003
Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties
(as noted above) are included, and educate its employees on the procedures necessary to ensure full
compliance with this requirement. We also recommend NEW document each of these screenings
and retain them in the respective files, which should be completed prior to engaging in relationships
with these parties. For ongoing relationships, NEW should consider performing screenings on an
annual basis (and document them) to ensure continuous compliance in the event the suspension and
debarment status of any of these parties changes. Lastly, we recommend NEW perform
retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2023-001 Year-End Close Process/Account Reconciliations
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management
system of each non-Federal entity must provide for effective control over, and accountability for, all
funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and
assure that they are used solely for authorized purposes.
Condition: The fiscal year-end schedules supporting various asset and liability accounts were
incorrectly prepared and required revision, resulting in significant adjustments to NEW's unaudited
financial statements. Multiple trial balances were received throughout the audit process. A significant
amount of time was spent by management during the audit process reconciling accounts resulting in
an audit delay. The delay resulted in additional audit work performed after the original end date of the
initial field work. These issues most likely resulted in management and the Board reviewing unreliable
internal financial information throughout the year, and this also represents a deficiency in adhering to
NEW's internal control policies and procedures.
Cause: A proper internal controls process, which would include a supervisory review and approval
process (with physical or electronic evidence of such a process), was not in place during the fiscal
year under audit.Effect or Potential Effect: Significant adjustments were proposed by management during the audit.
Additionally, any internal financial statements produced by management during the year (and as of
fiscal year-end) were not properly stated in relation to the financial statements taken as a whole (and
therefore could not be relied upon).
Questioned Costs: None
Context: Our audit procedures consisted of an initial review of the financial statements and related
supporting schedules, which led to management having to perform multiple subsequent reviews (and
corrections) following attempts to correct earlier provided schedules and financial statements. The
condition noted is deemed to be systematic in nature.
Identification as a Repeat Finding, if Applicable: Finding 2022-001
Recommendation: We recommend that NEW ensure that each account is properly reconciled on a
monthly basis.
Finding 2023-002: Support for Schedule of Expenditures of Federal Awards in the Accounting
System
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the
auditee must be able to identify all Federal awards received and expenses and the Federal programs
under which they were received.
Condition: Detailed invoices were available to support the amounts reported on the Schedule of
Expenditures of Federal Awards (SEFA), however the expenses had not been accurately classified
by award within the general ledger. It is not possible to extract a program income statement to
support the expenditures reported for each program from the accounting system.
Cause: Although they do have categories set up by program, NEW was not tracking the charges
reimbursed by the Federal Government separately within the general ledger.
Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information
within the accounting system, there is an increased potential for inaccurate reporting.
Questioned Costs: Indeterminable
Context: The account structure was not set up to track the expenses charged to the Federal
Government.
Identification as a Repeat Finding, if Applicable: Finding 2022-002
Recommendation: We recommend that NEW ensure that support for the Schedule of Expenditures
of Federal Awards (SEFA) can be extracted from the accounting system (i.e. a program income
statement).
Finding 2023-003: Suspension and Debarment
Federal Programs: ALN 14.235
Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific
requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure
the organization is not conducting business with excluded parties (as defined by the U.S.
Government); the screening must be documented in writing.
Condition: During the fiscal year, NEW did not consistently perform the screening process for its
potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that
were paid with Federal funds.
Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but
did not adhere to its policy and retain documentation of screenings, during the fiscal year.
Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors,
subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently
provided to parties deemed to be suspended or disbarred by the United States Government.
Questioned Costs: Indeterminable
Context: Payments were made during the fiscal year without performing the proper screening
process. Our audit work in this area consisted of internal control testwork over a random sample of
expenditures, as well as substantive testwork over transactions above a defined threshold from
select expense accounts that were charged to the Federal program. We consider our samples to be
representative of the respective populations, and thus, are statistically valid samples. The issue is
deemed to be systemic.
Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001, 2022-003
Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties
(as noted above) are included, and educate its employees on the procedures necessary to ensure full
compliance with this requirement. We also recommend NEW document each of these screenings
and retain them in the respective files, which should be completed prior to engaging in relationships
with these parties. For ongoing relationships, NEW should consider performing screenings on an
annual basis (and document them) to ensure continuous compliance in the event the suspension and
debarment status of any of these parties changes. Lastly, we recommend NEW perform
retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2023-001 Year-End Close Process/Account Reconciliations
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management
system of each non-Federal entity must provide for effective control over, and accountability for, all
funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and
assure that they are used solely for authorized purposes.
Condition: The fiscal year-end schedules supporting various asset and liability accounts were
incorrectly prepared and required revision, resulting in significant adjustments to NEW's unaudited
financial statements. Multiple trial balances were received throughout the audit process. A significant
amount of time was spent by management during the audit process reconciling accounts resulting in
an audit delay. The delay resulted in additional audit work performed after the original end date of the
initial field work. These issues most likely resulted in management and the Board reviewing unreliable
internal financial information throughout the year, and this also represents a deficiency in adhering to
NEW's internal control policies and procedures.
Cause: A proper internal controls process, which would include a supervisory review and approval
process (with physical or electronic evidence of such a process), was not in place during the fiscal
year under audit.Effect or Potential Effect: Significant adjustments were proposed by management during the audit.
Additionally, any internal financial statements produced by management during the year (and as of
fiscal year-end) were not properly stated in relation to the financial statements taken as a whole (and
therefore could not be relied upon).
Questioned Costs: None
Context: Our audit procedures consisted of an initial review of the financial statements and related
supporting schedules, which led to management having to perform multiple subsequent reviews (and
corrections) following attempts to correct earlier provided schedules and financial statements. The
condition noted is deemed to be systematic in nature.
Identification as a Repeat Finding, if Applicable: Finding 2022-001
Recommendation: We recommend that NEW ensure that each account is properly reconciled on a
monthly basis.
Finding 2023-002: Support for Schedule of Expenditures of Federal Awards in the Accounting
System
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the
auditee must be able to identify all Federal awards received and expenses and the Federal programs
under which they were received.
Condition: Detailed invoices were available to support the amounts reported on the Schedule of
Expenditures of Federal Awards (SEFA), however the expenses had not been accurately classified
by award within the general ledger. It is not possible to extract a program income statement to
support the expenditures reported for each program from the accounting system.
Cause: Although they do have categories set up by program, NEW was not tracking the charges
reimbursed by the Federal Government separately within the general ledger.
Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information
within the accounting system, there is an increased potential for inaccurate reporting.
Questioned Costs: Indeterminable
Context: The account structure was not set up to track the expenses charged to the Federal
Government.
Identification as a Repeat Finding, if Applicable: Finding 2022-002
Recommendation: We recommend that NEW ensure that support for the Schedule of Expenditures
of Federal Awards (SEFA) can be extracted from the accounting system (i.e. a program income
statement).
Finding 2023-003: Suspension and Debarment
Federal Programs: ALN 14.235
Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific
requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure
the organization is not conducting business with excluded parties (as defined by the U.S.
Government); the screening must be documented in writing.
Condition: During the fiscal year, NEW did not consistently perform the screening process for its
potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that
were paid with Federal funds.
Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but
did not adhere to its policy and retain documentation of screenings, during the fiscal year.
Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors,
subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently
provided to parties deemed to be suspended or disbarred by the United States Government.
Questioned Costs: Indeterminable
Context: Payments were made during the fiscal year without performing the proper screening
process. Our audit work in this area consisted of internal control testwork over a random sample of
expenditures, as well as substantive testwork over transactions above a defined threshold from
select expense accounts that were charged to the Federal program. We consider our samples to be
representative of the respective populations, and thus, are statistically valid samples. The issue is
deemed to be systemic.
Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001, 2022-003
Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties
(as noted above) are included, and educate its employees on the procedures necessary to ensure full
compliance with this requirement. We also recommend NEW document each of these screenings
and retain them in the respective files, which should be completed prior to engaging in relationships
with these parties. For ongoing relationships, NEW should consider performing screenings on an
annual basis (and document them) to ensure continuous compliance in the event the suspension and
debarment status of any of these parties changes. Lastly, we recommend NEW perform
retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2023-001 Year-End Close Process/Account Reconciliations
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management
system of each non-Federal entity must provide for effective control over, and accountability for, all
funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and
assure that they are used solely for authorized purposes.
Condition: The fiscal year-end schedules supporting various asset and liability accounts were
incorrectly prepared and required revision, resulting in significant adjustments to NEW's unaudited
financial statements. Multiple trial balances were received throughout the audit process. A significant
amount of time was spent by management during the audit process reconciling accounts resulting in
an audit delay. The delay resulted in additional audit work performed after the original end date of the
initial field work. These issues most likely resulted in management and the Board reviewing unreliable
internal financial information throughout the year, and this also represents a deficiency in adhering to
NEW's internal control policies and procedures.
Cause: A proper internal controls process, which would include a supervisory review and approval
process (with physical or electronic evidence of such a process), was not in place during the fiscal
year under audit.Effect or Potential Effect: Significant adjustments were proposed by management during the audit.
Additionally, any internal financial statements produced by management during the year (and as of
fiscal year-end) were not properly stated in relation to the financial statements taken as a whole (and
therefore could not be relied upon).
Questioned Costs: None
Context: Our audit procedures consisted of an initial review of the financial statements and related
supporting schedules, which led to management having to perform multiple subsequent reviews (and
corrections) following attempts to correct earlier provided schedules and financial statements. The
condition noted is deemed to be systematic in nature.
Identification as a Repeat Finding, if Applicable: Finding 2022-001
Recommendation: We recommend that NEW ensure that each account is properly reconciled on a
monthly basis.
Finding 2023-002: Support for Schedule of Expenditures of Federal Awards in the Accounting
System
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the
auditee must be able to identify all Federal awards received and expenses and the Federal programs
under which they were received.
Condition: Detailed invoices were available to support the amounts reported on the Schedule of
Expenditures of Federal Awards (SEFA), however the expenses had not been accurately classified
by award within the general ledger. It is not possible to extract a program income statement to
support the expenditures reported for each program from the accounting system.
Cause: Although they do have categories set up by program, NEW was not tracking the charges
reimbursed by the Federal Government separately within the general ledger.
Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information
within the accounting system, there is an increased potential for inaccurate reporting.
Questioned Costs: Indeterminable
Context: The account structure was not set up to track the expenses charged to the Federal
Government.
Identification as a Repeat Finding, if Applicable: Finding 2022-002
Recommendation: We recommend that NEW ensure that support for the Schedule of Expenditures
of Federal Awards (SEFA) can be extracted from the accounting system (i.e. a program income
statement).
Finding 2023-003: Suspension and Debarment
Federal Programs: ALN 14.235
Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific
requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure
the organization is not conducting business with excluded parties (as defined by the U.S.
Government); the screening must be documented in writing.
Condition: During the fiscal year, NEW did not consistently perform the screening process for its
potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that
were paid with Federal funds.
Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but
did not adhere to its policy and retain documentation of screenings, during the fiscal year.
Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors,
subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently
provided to parties deemed to be suspended or disbarred by the United States Government.
Questioned Costs: Indeterminable
Context: Payments were made during the fiscal year without performing the proper screening
process. Our audit work in this area consisted of internal control testwork over a random sample of
expenditures, as well as substantive testwork over transactions above a defined threshold from
select expense accounts that were charged to the Federal program. We consider our samples to be
representative of the respective populations, and thus, are statistically valid samples. The issue is
deemed to be systemic.
Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001, 2022-003
Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties
(as noted above) are included, and educate its employees on the procedures necessary to ensure full
compliance with this requirement. We also recommend NEW document each of these screenings
and retain them in the respective files, which should be completed prior to engaging in relationships
with these parties. For ongoing relationships, NEW should consider performing screenings on an
annual basis (and document them) to ensure continuous compliance in the event the suspension and
debarment status of any of these parties changes. Lastly, we recommend NEW perform
retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2023-001 Year-End Close Process/Account Reconciliations
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management
system of each non-Federal entity must provide for effective control over, and accountability for, all
funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and
assure that they are used solely for authorized purposes.
Condition: The fiscal year-end schedules supporting various asset and liability accounts were
incorrectly prepared and required revision, resulting in significant adjustments to NEW's unaudited
financial statements. Multiple trial balances were received throughout the audit process. A significant
amount of time was spent by management during the audit process reconciling accounts resulting in
an audit delay. The delay resulted in additional audit work performed after the original end date of the
initial field work. These issues most likely resulted in management and the Board reviewing unreliable
internal financial information throughout the year, and this also represents a deficiency in adhering to
NEW's internal control policies and procedures.
Cause: A proper internal controls process, which would include a supervisory review and approval
process (with physical or electronic evidence of such a process), was not in place during the fiscal
year under audit.Effect or Potential Effect: Significant adjustments were proposed by management during the audit.
Additionally, any internal financial statements produced by management during the year (and as of
fiscal year-end) were not properly stated in relation to the financial statements taken as a whole (and
therefore could not be relied upon).
Questioned Costs: None
Context: Our audit procedures consisted of an initial review of the financial statements and related
supporting schedules, which led to management having to perform multiple subsequent reviews (and
corrections) following attempts to correct earlier provided schedules and financial statements. The
condition noted is deemed to be systematic in nature.
Identification as a Repeat Finding, if Applicable: Finding 2022-001
Recommendation: We recommend that NEW ensure that each account is properly reconciled on a
monthly basis.
Finding 2023-002: Support for Schedule of Expenditures of Federal Awards in the Accounting
System
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the
auditee must be able to identify all Federal awards received and expenses and the Federal programs
under which they were received.
Condition: Detailed invoices were available to support the amounts reported on the Schedule of
Expenditures of Federal Awards (SEFA), however the expenses had not been accurately classified
by award within the general ledger. It is not possible to extract a program income statement to
support the expenditures reported for each program from the accounting system.
Cause: Although they do have categories set up by program, NEW was not tracking the charges
reimbursed by the Federal Government separately within the general ledger.
Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information
within the accounting system, there is an increased potential for inaccurate reporting.
Questioned Costs: Indeterminable
Context: The account structure was not set up to track the expenses charged to the Federal
Government.
Identification as a Repeat Finding, if Applicable: Finding 2022-002
Recommendation: We recommend that NEW ensure that support for the Schedule of Expenditures
of Federal Awards (SEFA) can be extracted from the accounting system (i.e. a program income
statement).
Finding 2023-003: Suspension and Debarment
Federal Programs: ALN 14.235
Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific
requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure
the organization is not conducting business with excluded parties (as defined by the U.S.
Government); the screening must be documented in writing.
Condition: During the fiscal year, NEW did not consistently perform the screening process for its
potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that
were paid with Federal funds.
Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but
did not adhere to its policy and retain documentation of screenings, during the fiscal year.
Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors,
subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently
provided to parties deemed to be suspended or disbarred by the United States Government.
Questioned Costs: Indeterminable
Context: Payments were made during the fiscal year without performing the proper screening
process. Our audit work in this area consisted of internal control testwork over a random sample of
expenditures, as well as substantive testwork over transactions above a defined threshold from
select expense accounts that were charged to the Federal program. We consider our samples to be
representative of the respective populations, and thus, are statistically valid samples. The issue is
deemed to be systemic.
Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001, 2022-003
Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties
(as noted above) are included, and educate its employees on the procedures necessary to ensure full
compliance with this requirement. We also recommend NEW document each of these screenings
and retain them in the respective files, which should be completed prior to engaging in relationships
with these parties. For ongoing relationships, NEW should consider performing screenings on an
annual basis (and document them) to ensure continuous compliance in the event the suspension and
debarment status of any of these parties changes. Lastly, we recommend NEW perform
retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2023-001 Year-End Close Process/Account Reconciliations
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management
system of each non-Federal entity must provide for effective control over, and accountability for, all
funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and
assure that they are used solely for authorized purposes.
Condition: The fiscal year-end schedules supporting various asset and liability accounts were
incorrectly prepared and required revision, resulting in significant adjustments to NEW's unaudited
financial statements. Multiple trial balances were received throughout the audit process. A significant
amount of time was spent by management during the audit process reconciling accounts resulting in
an audit delay. The delay resulted in additional audit work performed after the original end date of the
initial field work. These issues most likely resulted in management and the Board reviewing unreliable
internal financial information throughout the year, and this also represents a deficiency in adhering to
NEW's internal control policies and procedures.
Cause: A proper internal controls process, which would include a supervisory review and approval
process (with physical or electronic evidence of such a process), was not in place during the fiscal
year under audit.Effect or Potential Effect: Significant adjustments were proposed by management during the audit.
Additionally, any internal financial statements produced by management during the year (and as of
fiscal year-end) were not properly stated in relation to the financial statements taken as a whole (and
therefore could not be relied upon).
Questioned Costs: None
Context: Our audit procedures consisted of an initial review of the financial statements and related
supporting schedules, which led to management having to perform multiple subsequent reviews (and
corrections) following attempts to correct earlier provided schedules and financial statements. The
condition noted is deemed to be systematic in nature.
Identification as a Repeat Finding, if Applicable: Finding 2022-001
Recommendation: We recommend that NEW ensure that each account is properly reconciled on a
monthly basis.
Finding 2023-002: Support for Schedule of Expenditures of Federal Awards in the Accounting
System
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the
auditee must be able to identify all Federal awards received and expenses and the Federal programs
under which they were received.
Condition: Detailed invoices were available to support the amounts reported on the Schedule of
Expenditures of Federal Awards (SEFA), however the expenses had not been accurately classified
by award within the general ledger. It is not possible to extract a program income statement to
support the expenditures reported for each program from the accounting system.
Cause: Although they do have categories set up by program, NEW was not tracking the charges
reimbursed by the Federal Government separately within the general ledger.
Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information
within the accounting system, there is an increased potential for inaccurate reporting.
Questioned Costs: Indeterminable
Context: The account structure was not set up to track the expenses charged to the Federal
Government.
Identification as a Repeat Finding, if Applicable: Finding 2022-002
Recommendation: We recommend that NEW ensure that support for the Schedule of Expenditures
of Federal Awards (SEFA) can be extracted from the accounting system (i.e. a program income
statement).
Finding 2023-003: Suspension and Debarment
Federal Programs: ALN 14.235
Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific
requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure
the organization is not conducting business with excluded parties (as defined by the U.S.
Government); the screening must be documented in writing.
Condition: During the fiscal year, NEW did not consistently perform the screening process for its
potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that
were paid with Federal funds.
Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but
did not adhere to its policy and retain documentation of screenings, during the fiscal year.
Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors,
subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently
provided to parties deemed to be suspended or disbarred by the United States Government.
Questioned Costs: Indeterminable
Context: Payments were made during the fiscal year without performing the proper screening
process. Our audit work in this area consisted of internal control testwork over a random sample of
expenditures, as well as substantive testwork over transactions above a defined threshold from
select expense accounts that were charged to the Federal program. We consider our samples to be
representative of the respective populations, and thus, are statistically valid samples. The issue is
deemed to be systemic.
Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001, 2022-003
Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties
(as noted above) are included, and educate its employees on the procedures necessary to ensure full
compliance with this requirement. We also recommend NEW document each of these screenings
and retain them in the respective files, which should be completed prior to engaging in relationships
with these parties. For ongoing relationships, NEW should consider performing screenings on an
annual basis (and document them) to ensure continuous compliance in the event the suspension and
debarment status of any of these parties changes. Lastly, we recommend NEW perform
retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2023-001 Year-End Close Process/Account Reconciliations
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management
system of each non-Federal entity must provide for effective control over, and accountability for, all
funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and
assure that they are used solely for authorized purposes.
Condition: The fiscal year-end schedules supporting various asset and liability accounts were
incorrectly prepared and required revision, resulting in significant adjustments to NEW's unaudited
financial statements. Multiple trial balances were received throughout the audit process. A significant
amount of time was spent by management during the audit process reconciling accounts resulting in
an audit delay. The delay resulted in additional audit work performed after the original end date of the
initial field work. These issues most likely resulted in management and the Board reviewing unreliable
internal financial information throughout the year, and this also represents a deficiency in adhering to
NEW's internal control policies and procedures.
Cause: A proper internal controls process, which would include a supervisory review and approval
process (with physical or electronic evidence of such a process), was not in place during the fiscal
year under audit.Effect or Potential Effect: Significant adjustments were proposed by management during the audit.
Additionally, any internal financial statements produced by management during the year (and as of
fiscal year-end) were not properly stated in relation to the financial statements taken as a whole (and
therefore could not be relied upon).
Questioned Costs: None
Context: Our audit procedures consisted of an initial review of the financial statements and related
supporting schedules, which led to management having to perform multiple subsequent reviews (and
corrections) following attempts to correct earlier provided schedules and financial statements. The
condition noted is deemed to be systematic in nature.
Identification as a Repeat Finding, if Applicable: Finding 2022-001
Recommendation: We recommend that NEW ensure that each account is properly reconciled on a
monthly basis.
Finding 2023-002: Support for Schedule of Expenditures of Federal Awards in the Accounting
System
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the
auditee must be able to identify all Federal awards received and expenses and the Federal programs
under which they were received.
Condition: Detailed invoices were available to support the amounts reported on the Schedule of
Expenditures of Federal Awards (SEFA), however the expenses had not been accurately classified
by award within the general ledger. It is not possible to extract a program income statement to
support the expenditures reported for each program from the accounting system.
Cause: Although they do have categories set up by program, NEW was not tracking the charges
reimbursed by the Federal Government separately within the general ledger.
Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information
within the accounting system, there is an increased potential for inaccurate reporting.
Questioned Costs: Indeterminable
Context: The account structure was not set up to track the expenses charged to the Federal
Government.
Identification as a Repeat Finding, if Applicable: Finding 2022-002
Recommendation: We recommend that NEW ensure that support for the Schedule of Expenditures
of Federal Awards (SEFA) can be extracted from the accounting system (i.e. a program income
statement).
Finding 2023-003: Suspension and Debarment
Federal Programs: ALN 14.235
Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific
requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure
the organization is not conducting business with excluded parties (as defined by the U.S.
Government); the screening must be documented in writing.
Condition: During the fiscal year, NEW did not consistently perform the screening process for its
potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that
were paid with Federal funds.
Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but
did not adhere to its policy and retain documentation of screenings, during the fiscal year.
Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors,
subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently
provided to parties deemed to be suspended or disbarred by the United States Government.
Questioned Costs: Indeterminable
Context: Payments were made during the fiscal year without performing the proper screening
process. Our audit work in this area consisted of internal control testwork over a random sample of
expenditures, as well as substantive testwork over transactions above a defined threshold from
select expense accounts that were charged to the Federal program. We consider our samples to be
representative of the respective populations, and thus, are statistically valid samples. The issue is
deemed to be systemic.
Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001, 2022-003
Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties
(as noted above) are included, and educate its employees on the procedures necessary to ensure full
compliance with this requirement. We also recommend NEW document each of these screenings
and retain them in the respective files, which should be completed prior to engaging in relationships
with these parties. For ongoing relationships, NEW should consider performing screenings on an
annual basis (and document them) to ensure continuous compliance in the event the suspension and
debarment status of any of these parties changes. Lastly, we recommend NEW perform
retrospective screenings on these parties it made payments to during the fiscal year.
Finding 2023-001 Year-End Close Process/Account Reconciliations
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 the financial management
system of each non-Federal entity must provide for effective control over, and accountability for, all
funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and
assure that they are used solely for authorized purposes.
Condition: The fiscal year-end schedules supporting various asset and liability accounts were
incorrectly prepared and required revision, resulting in significant adjustments to NEW's unaudited
financial statements. Multiple trial balances were received throughout the audit process. A significant
amount of time was spent by management during the audit process reconciling accounts resulting in
an audit delay. The delay resulted in additional audit work performed after the original end date of the
initial field work. These issues most likely resulted in management and the Board reviewing unreliable
internal financial information throughout the year, and this also represents a deficiency in adhering to
NEW's internal control policies and procedures.
Cause: A proper internal controls process, which would include a supervisory review and approval
process (with physical or electronic evidence of such a process), was not in place during the fiscal
year under audit.Effect or Potential Effect: Significant adjustments were proposed by management during the audit.
Additionally, any internal financial statements produced by management during the year (and as of
fiscal year-end) were not properly stated in relation to the financial statements taken as a whole (and
therefore could not be relied upon).
Questioned Costs: None
Context: Our audit procedures consisted of an initial review of the financial statements and related
supporting schedules, which led to management having to perform multiple subsequent reviews (and
corrections) following attempts to correct earlier provided schedules and financial statements. The
condition noted is deemed to be systematic in nature.
Identification as a Repeat Finding, if Applicable: Finding 2022-001
Recommendation: We recommend that NEW ensure that each account is properly reconciled on a
monthly basis.
Finding 2023-002: Support for Schedule of Expenditures of Federal Awards in the Accounting
System
Information on the Federal Programs: ALN 14.235
Criteria or Specific Requirement: In accordance with CFR 200.302 (financial management) the
auditee must be able to identify all Federal awards received and expenses and the Federal programs
under which they were received.
Condition: Detailed invoices were available to support the amounts reported on the Schedule of
Expenditures of Federal Awards (SEFA), however the expenses had not been accurately classified
by award within the general ledger. It is not possible to extract a program income statement to
support the expenditures reported for each program from the accounting system.
Cause: Although they do have categories set up by program, NEW was not tracking the charges
reimbursed by the Federal Government separately within the general ledger.
Effect or Potential Effect: If the information on the SEFA cannot be traced back to the information
within the accounting system, there is an increased potential for inaccurate reporting.
Questioned Costs: Indeterminable
Context: The account structure was not set up to track the expenses charged to the Federal
Government.
Identification as a Repeat Finding, if Applicable: Finding 2022-002
Recommendation: We recommend that NEW ensure that support for the Schedule of Expenditures
of Federal Awards (SEFA) can be extracted from the accounting system (i.e. a program income
statement).
Finding 2023-003: Suspension and Debarment
Federal Programs: ALN 14.235
Criteria or Specific Requirement: Recipients of U.S. Government funds must adhere to specific
requirements on screening all potential vendors, suppliers and sub-contractors/grantees to ensure
the organization is not conducting business with excluded parties (as defined by the U.S.
Government); the screening must be documented in writing.
Condition: During the fiscal year, NEW did not consistently perform the screening process for its
potential and current vendors, suppliers, contractors, subrecipients, employees, fellows, etc. that
were paid with Federal funds.
Cause: NEW has a formal policy in place with regard to suspension and debarment screenings, but
did not adhere to its policy and retain documentation of screenings, during the fiscal year.
Effect or Potential Effect: Failure to screen potential and current vendors, suppliers, contractors,
subrecipients, employees, fellows, etc. increases the potential that Federal funds be inadvertently
provided to parties deemed to be suspended or disbarred by the United States Government.
Questioned Costs: Indeterminable
Context: Payments were made during the fiscal year without performing the proper screening
process. Our audit work in this area consisted of internal control testwork over a random sample of
expenditures, as well as substantive testwork over transactions above a defined threshold from
select expense accounts that were charged to the Federal program. We consider our samples to be
representative of the respective populations, and thus, are statistically valid samples. The issue is
deemed to be systemic.
Identification as a Repeat Finding, if Applicable: 2020-001, 2021-001, 2022-003
Recommendation: We recommend NEW revisit its current policy and ensure that all types of parties
(as noted above) are included, and educate its employees on the procedures necessary to ensure full
compliance with this requirement. We also recommend NEW document each of these screenings
and retain them in the respective files, which should be completed prior to engaging in relationships
with these parties. For ongoing relationships, NEW should consider performing screenings on an
annual basis (and document them) to ensure continuous compliance in the event the suspension and
debarment status of any of these parties changes. Lastly, we recommend NEW perform
retrospective screenings on these parties it made payments to during the fiscal year.