FAC Explorer

Audit 33261

FY End
2022-06-30
Total Expended
$1.15M
Findings
6
Programs
8
Organization: Council on Aging - Southern California (CA)
Year: 2022 Accepted: 2023-08-14
Auditor: Moss Adams LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33923 2022-002 Significant Deficiency - AB
33924 2022-002 Significant Deficiency - AB
33925 2022-002 Significant Deficiency - AB
610365 2022-002 Significant Deficiency - AB
610366 2022-002 Significant Deficiency - AB
610367 2022-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.324 Centers for Medicare and Medicaid Services (cms) Research, Demonstrations and Evaluations $143,558 Yes 1
93.071 Medicare Enrollment Assistance Program (mippa) $126,506 - 0
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $107,917 - 0
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $106,552 - 0
93.042 Covid-19 - Ooa Cares - Title III Vii Ombudsman $63,978 - 0
93.626 Ship and Adrc Options with Approved Financial Alignment $49,682 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $34,917 - 0
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $6,419 - 0

Contacts

Name Title Type
LL8TLAJBVEF8 Lisa Wright Jenkins Auditee
7144790117 Matt Parsons Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Note 2 - Summary of Significant 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The Organization has elected not to use the 10% de minimis indirect rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal, state, and county awards (the Schedule) includes the federal grant activity of Council on Aging Southern California (the Organization) under the programs of the federal government for the year ended June 30, 2022. 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 Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, functional expenses or cash flows of the Organization.
Title: Note 3 - Amounts Provided to Subrecipients Accounting Policies: Note 2 - Summary of Significant 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The Organization has elected not to use the 10% de minimis indirect rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect rate allowed under the Uniform Guidance. No federal awards expenditures were provided to subrecipients during the year ended June 30, 2022.
Title: Note 4 - Relationship of Schedule of Federal Awards to the Financial Stmts Accounting Policies: Note 2 - Summary of Significant 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The Organization has elected not to use the 10% de minimis indirect rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect rate allowed under the Uniform Guidance. Consistent with managements policy, federal awards are recorded in government contract revenue along with other revenue from non-federal sources. As a result, the amount of total federal awards expended on this schedule does not agree to total government contract revenue on the statement of activities as presented in the Organizations audited financial statements as of and for the year ended June 30, 2022.

Finding Details

Finding 2022-002
Finding 2022-002: Journal Entry and Account Reconciliations Review ? Significant Deficiency in Internal Control over Compliance See Schedule of Findings and Questioned Costs for chart/table Criteria: Evidence of journal entry reviews is a critical control to ensure that journal entries are being reviewed timely and with enough rigor to detect errors or fraud. Condition: We randomly selected 7 journal entries out of a population of 66 transactions using a nonstatistical sampling method representing costs charged to the award for the year ended June 30, 2022. Of the 7 selections we were unable to observe evidence of review and approval for 3 of the entries. Cause: Due to turnover within the organization and size of the accounting team, journal entries and account reconciliations review were not adequately documented. Effect or potential effect: The potential effect of not documenting reviews or journal entries or account reconciliations could allow journal entries or reconciliations to not be performed. Questioned costs: None Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that management complete and document reviews over all journal entries and account reconciliation throughout the fiscal year. Views of responsible officials: Management has implemented an immediate response to this significant deficiency as follows: Adjusting Journal Entries are to be requested by Accounting Manager(s) (or above) and booked into QuickBooks by a Staff Accountant. After a Staff Accountant has booked the journal entry into the accounting system, s/he will print out the AJE, and sign and date the journal entry. Staff Accountant will then provide the signed journal entry with supporting backup to the Accounting Manager (or above) for review and approval. Manager (or above) will approve journal entries by providing a physical signature on each journal entry. Staff Accountant will scan and file the signed journal entries into the document storage database. Bank reconciliations are to be performed by a Staff Accountant and provided to an Accounting Manager (or above) for review. The Accounting Manager (or above) will approve bank reconciliations by providing a physical signature on each reconciliation. Staff Accountant will scan and file signed reconciliations into the document storage database.
Finding 2022-002
Finding 2022-002: Journal Entry and Account Reconciliations Review ? Significant Deficiency in Internal Control over Compliance See Schedule of Findings and Questioned Costs for chart/table Criteria: Evidence of journal entry reviews is a critical control to ensure that journal entries are being reviewed timely and with enough rigor to detect errors or fraud. Condition: We randomly selected 7 journal entries out of a population of 66 transactions using a nonstatistical sampling method representing costs charged to the award for the year ended June 30, 2022. Of the 7 selections we were unable to observe evidence of review and approval for 3 of the entries. Cause: Due to turnover within the organization and size of the accounting team, journal entries and account reconciliations review were not adequately documented. Effect or potential effect: The potential effect of not documenting reviews or journal entries or account reconciliations could allow journal entries or reconciliations to not be performed. Questioned costs: None Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that management complete and document reviews over all journal entries and account reconciliation throughout the fiscal year. Views of responsible officials: Management has implemented an immediate response to this significant deficiency as follows: Adjusting Journal Entries are to be requested by Accounting Manager(s) (or above) and booked into QuickBooks by a Staff Accountant. After a Staff Accountant has booked the journal entry into the accounting system, s/he will print out the AJE, and sign and date the journal entry. Staff Accountant will then provide the signed journal entry with supporting backup to the Accounting Manager (or above) for review and approval. Manager (or above) will approve journal entries by providing a physical signature on each journal entry. Staff Accountant will scan and file the signed journal entries into the document storage database. Bank reconciliations are to be performed by a Staff Accountant and provided to an Accounting Manager (or above) for review. The Accounting Manager (or above) will approve bank reconciliations by providing a physical signature on each reconciliation. Staff Accountant will scan and file signed reconciliations into the document storage database.
Finding 2022-002
Finding 2022-002: Journal Entry and Account Reconciliations Review ? Significant Deficiency in Internal Control over Compliance See Schedule of Findings and Questioned Costs for chart/table Criteria: Evidence of journal entry reviews is a critical control to ensure that journal entries are being reviewed timely and with enough rigor to detect errors or fraud. Condition: We randomly selected 7 journal entries out of a population of 66 transactions using a nonstatistical sampling method representing costs charged to the award for the year ended June 30, 2022. Of the 7 selections we were unable to observe evidence of review and approval for 3 of the entries. Cause: Due to turnover within the organization and size of the accounting team, journal entries and account reconciliations review were not adequately documented. Effect or potential effect: The potential effect of not documenting reviews or journal entries or account reconciliations could allow journal entries or reconciliations to not be performed. Questioned costs: None Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that management complete and document reviews over all journal entries and account reconciliation throughout the fiscal year. Views of responsible officials: Management has implemented an immediate response to this significant deficiency as follows: Adjusting Journal Entries are to be requested by Accounting Manager(s) (or above) and booked into QuickBooks by a Staff Accountant. After a Staff Accountant has booked the journal entry into the accounting system, s/he will print out the AJE, and sign and date the journal entry. Staff Accountant will then provide the signed journal entry with supporting backup to the Accounting Manager (or above) for review and approval. Manager (or above) will approve journal entries by providing a physical signature on each journal entry. Staff Accountant will scan and file the signed journal entries into the document storage database. Bank reconciliations are to be performed by a Staff Accountant and provided to an Accounting Manager (or above) for review. The Accounting Manager (or above) will approve bank reconciliations by providing a physical signature on each reconciliation. Staff Accountant will scan and file signed reconciliations into the document storage database.
Finding 2022-002
Finding 2022-002: Journal Entry and Account Reconciliations Review ? Significant Deficiency in Internal Control over Compliance See Schedule of Findings and Questioned Costs for chart/table Criteria: Evidence of journal entry reviews is a critical control to ensure that journal entries are being reviewed timely and with enough rigor to detect errors or fraud. Condition: We randomly selected 7 journal entries out of a population of 66 transactions using a nonstatistical sampling method representing costs charged to the award for the year ended June 30, 2022. Of the 7 selections we were unable to observe evidence of review and approval for 3 of the entries. Cause: Due to turnover within the organization and size of the accounting team, journal entries and account reconciliations review were not adequately documented. Effect or potential effect: The potential effect of not documenting reviews or journal entries or account reconciliations could allow journal entries or reconciliations to not be performed. Questioned costs: None Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that management complete and document reviews over all journal entries and account reconciliation throughout the fiscal year. Views of responsible officials: Management has implemented an immediate response to this significant deficiency as follows: Adjusting Journal Entries are to be requested by Accounting Manager(s) (or above) and booked into QuickBooks by a Staff Accountant. After a Staff Accountant has booked the journal entry into the accounting system, s/he will print out the AJE, and sign and date the journal entry. Staff Accountant will then provide the signed journal entry with supporting backup to the Accounting Manager (or above) for review and approval. Manager (or above) will approve journal entries by providing a physical signature on each journal entry. Staff Accountant will scan and file the signed journal entries into the document storage database. Bank reconciliations are to be performed by a Staff Accountant and provided to an Accounting Manager (or above) for review. The Accounting Manager (or above) will approve bank reconciliations by providing a physical signature on each reconciliation. Staff Accountant will scan and file signed reconciliations into the document storage database.
Finding 2022-002
Finding 2022-002: Journal Entry and Account Reconciliations Review ? Significant Deficiency in Internal Control over Compliance See Schedule of Findings and Questioned Costs for chart/table Criteria: Evidence of journal entry reviews is a critical control to ensure that journal entries are being reviewed timely and with enough rigor to detect errors or fraud. Condition: We randomly selected 7 journal entries out of a population of 66 transactions using a nonstatistical sampling method representing costs charged to the award for the year ended June 30, 2022. Of the 7 selections we were unable to observe evidence of review and approval for 3 of the entries. Cause: Due to turnover within the organization and size of the accounting team, journal entries and account reconciliations review were not adequately documented. Effect or potential effect: The potential effect of not documenting reviews or journal entries or account reconciliations could allow journal entries or reconciliations to not be performed. Questioned costs: None Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that management complete and document reviews over all journal entries and account reconciliation throughout the fiscal year. Views of responsible officials: Management has implemented an immediate response to this significant deficiency as follows: Adjusting Journal Entries are to be requested by Accounting Manager(s) (or above) and booked into QuickBooks by a Staff Accountant. After a Staff Accountant has booked the journal entry into the accounting system, s/he will print out the AJE, and sign and date the journal entry. Staff Accountant will then provide the signed journal entry with supporting backup to the Accounting Manager (or above) for review and approval. Manager (or above) will approve journal entries by providing a physical signature on each journal entry. Staff Accountant will scan and file the signed journal entries into the document storage database. Bank reconciliations are to be performed by a Staff Accountant and provided to an Accounting Manager (or above) for review. The Accounting Manager (or above) will approve bank reconciliations by providing a physical signature on each reconciliation. Staff Accountant will scan and file signed reconciliations into the document storage database.
Finding 2022-002
Finding 2022-002: Journal Entry and Account Reconciliations Review ? Significant Deficiency in Internal Control over Compliance See Schedule of Findings and Questioned Costs for chart/table Criteria: Evidence of journal entry reviews is a critical control to ensure that journal entries are being reviewed timely and with enough rigor to detect errors or fraud. Condition: We randomly selected 7 journal entries out of a population of 66 transactions using a nonstatistical sampling method representing costs charged to the award for the year ended June 30, 2022. Of the 7 selections we were unable to observe evidence of review and approval for 3 of the entries. Cause: Due to turnover within the organization and size of the accounting team, journal entries and account reconciliations review were not adequately documented. Effect or potential effect: The potential effect of not documenting reviews or journal entries or account reconciliations could allow journal entries or reconciliations to not be performed. Questioned costs: None Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that management complete and document reviews over all journal entries and account reconciliation throughout the fiscal year. Views of responsible officials: Management has implemented an immediate response to this significant deficiency as follows: Adjusting Journal Entries are to be requested by Accounting Manager(s) (or above) and booked into QuickBooks by a Staff Accountant. After a Staff Accountant has booked the journal entry into the accounting system, s/he will print out the AJE, and sign and date the journal entry. Staff Accountant will then provide the signed journal entry with supporting backup to the Accounting Manager (or above) for review and approval. Manager (or above) will approve journal entries by providing a physical signature on each journal entry. Staff Accountant will scan and file the signed journal entries into the document storage database. Bank reconciliations are to be performed by a Staff Accountant and provided to an Accounting Manager (or above) for review. The Accounting Manager (or above) will approve bank reconciliations by providing a physical signature on each reconciliation. Staff Accountant will scan and file signed reconciliations into the document storage database.