FAC Explorer

Audit 313186

FY End
2022-06-30
Total Expended
$3.66M
Findings
8
Programs
3
Organization: Southeast Arkansas Community Action Corporation (AR)
Year: 2022 Accepted: 2023-07-19
Auditor: Searcy & Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
447603 2022-001 Material Weakness Yes AN
447604 2022-002 Material Weakness Yes AN
447605 2022-001 Material Weakness Yes AN
447606 2022-002 Material Weakness Yes AN
1024045 2022-001 Material Weakness Yes AN
1024046 2022-002 Material Weakness Yes AN
1024047 2022-001 Material Weakness Yes AN
1024048 2022-002 Material Weakness Yes AN

Programs

ALN Program Spent Major Findings
93.568 Low-Income Home Energy Assistance $1.34M Yes 2
93.569 Community Services Block Grant $428,172 - 0
10.568 Emergency Food Assistance Program (administrative Costs) $33,699 - 0

Contacts

Name Title Type
CL68RFBTJ773 Michael Jones Auditee
8709529056 Tina Martin 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 auditee did not use the de minimis cost rate. THIS SCHEDULE IS PREPARED ON THE SAME BASIS OF ACCOUNTING AS THE ORGANIZATION'S FINANCIAL STATEMENTS. THE ORGANIZATION USES THE ACCRUAL BASIS OF ACCOUNTING. EXPENDITURES REPESENT ONLY THE FEDERALLY FUNDED PORTIONS OF THE PROGRAM. ORGANIZATION RECORDS SHOULD BE CONSULTED TO DETERMINE AMOUNTS EXPENDED OR MATCHED FROM NON-FEDERAL SOURCES.
Title: RISK BASED AUDIT APPROACH 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 auditee did not use the de minimis cost rate. THE DOLLAR THRESHOLD USED TO DISTINGUISH BETWEEN TYPE A AND TYPE B PROGRAMS IS $750,000. THE CORPORATION DOES NOT QUALIFY AS A LOW-RISK AUDITEE.

Finding Details

Finding 2022-001
ReconciliationsCondition and Criteria: The entity did not prepare monthly cash reconciliations.Effect: The entity?s financial statements could be materially misstated.Cause: Monthly reconciliations were not being compared to the general ledger.Recommendation: Monthly reconciliations of bank statements to the general ledger must be performed to keep the two in balance and identify the reasons for any differences. We recommend that these reconciliations become a monthly routine.
Finding 2022-002
Material adjustmentsCriteria: Management is responsible for reconciling the accounts at the end of the year.Condition: Insufficient internal controls over financial reporting. Material audit adjustments were required to prevent the entity?s financial statements from being materially misstated.Cause: The entity relied on auditors to propose entries after audit procedures.Effect: Some audit adjustments were due to personnel inexperience with the entity?s general ledger system.Recommendation: The entity needs to improve internal controls to prevent these kinds of adjustments. The entity should document which accounting procedures are needed to be completed on a recurring basis to detect material adjustments. The auditor will work with the entity to make personnel more knowledgeable about its responsibility for the financial statements. The auditor also noted recommends the entity aquire additional training on the entity?s general ledger system.
Finding 2022-001
ReconciliationsCondition and Criteria: The entity did not prepare monthly cash reconciliations.Effect: The entity?s financial statements could be materially misstated.Cause: Monthly reconciliations were not being compared to the general ledger.Recommendation: Monthly reconciliations of bank statements to the general ledger must be performed to keep the two in balance and identify the reasons for any differences. We recommend that these reconciliations become a monthly routine.
Finding 2022-002
Material adjustmentsCriteria: Management is responsible for reconciling the accounts at the end of the year.Condition: Insufficient internal controls over financial reporting. Material audit adjustments were required to prevent the entity?s financial statements from being materially misstated.Cause: The entity relied on auditors to propose entries after audit procedures.Effect: Some audit adjustments were due to personnel inexperience with the entity?s general ledger system.Recommendation: The entity needs to improve internal controls to prevent these kinds of adjustments. The entity should document which accounting procedures are needed to be completed on a recurring basis to detect material adjustments. The auditor will work with the entity to make personnel more knowledgeable about its responsibility for the financial statements. The auditor also noted recommends the entity aquire additional training on the entity?s general ledger system.
Finding 2022-001
ReconciliationsCondition and Criteria: The entity did not prepare monthly cash reconciliations.Effect: The entity?s financial statements could be materially misstated.Cause: Monthly reconciliations were not being compared to the general ledger.Recommendation: Monthly reconciliations of bank statements to the general ledger must be performed to keep the two in balance and identify the reasons for any differences. We recommend that these reconciliations become a monthly routine.
Finding 2022-002
Material adjustmentsCriteria: Management is responsible for reconciling the accounts at the end of the year.Condition: Insufficient internal controls over financial reporting. Material audit adjustments were required to prevent the entity?s financial statements from being materially misstated.Cause: The entity relied on auditors to propose entries after audit procedures.Effect: Some audit adjustments were due to personnel inexperience with the entity?s general ledger system.Recommendation: The entity needs to improve internal controls to prevent these kinds of adjustments. The entity should document which accounting procedures are needed to be completed on a recurring basis to detect material adjustments. The auditor will work with the entity to make personnel more knowledgeable about its responsibility for the financial statements. The auditor also noted recommends the entity aquire additional training on the entity?s general ledger system.
Finding 2022-001
ReconciliationsCondition and Criteria: The entity did not prepare monthly cash reconciliations.Effect: The entity?s financial statements could be materially misstated.Cause: Monthly reconciliations were not being compared to the general ledger.Recommendation: Monthly reconciliations of bank statements to the general ledger must be performed to keep the two in balance and identify the reasons for any differences. We recommend that these reconciliations become a monthly routine.
Finding 2022-002
Material adjustmentsCriteria: Management is responsible for reconciling the accounts at the end of the year.Condition: Insufficient internal controls over financial reporting. Material audit adjustments were required to prevent the entity?s financial statements from being materially misstated.Cause: The entity relied on auditors to propose entries after audit procedures.Effect: Some audit adjustments were due to personnel inexperience with the entity?s general ledger system.Recommendation: The entity needs to improve internal controls to prevent these kinds of adjustments. The entity should document which accounting procedures are needed to be completed on a recurring basis to detect material adjustments. The auditor will work with the entity to make personnel more knowledgeable about its responsibility for the financial statements. The auditor also noted recommends the entity aquire additional training on the entity?s general ledger system.