Audit 350421

Condition – Management reviewed expenditures to determine alignment with cash drawdowns which was evidenced by approved draw down requests. However, due to limitations in the recordkeeping practices at the time, this alignment was not easily trackable in the financial records. Cause – Turnover of finance director with insufficient supporting financial records. Criteria – Federal draw downs are done after expenditures have been incurred. Support should be maintained to corroborate timing of expenditures. Effect – Based on the data in the general ledger, we reviewed the timing of expenditures yet cannot determine for certain if there were timing issues. Recommendation – Maintain a listing of expenditures in the general ledger system that correspond with each cash drawdown request. This list should be reviewed and approved prior to each drawdown occurring. Management’s Response – Management is aware of the difficulties relating to the 2023 audit process and has brought in a new finance director as well as a consultant to properly identify expenditures in the general ledger/accounting system that correspond with each drawdown request that occurred during 2024 and forward.

Condition – Uniform guidance audit was not submitted to Federal Audit Clearinghouse (FAC) by due date of September 30, 2024. Cause – Turnover in the finance team and a delay in reconciling accounts. Criteria – Uniform guidance audits are required to be submitted no later than nine months after fiscal year-end. Effect – This will result in other than low risk auditee status. Recommendation – All reconciliations and audit related materials should be available on a timely basis to ensure timely submission to FAC by the end of September. Management’s Response – Management is aware of the difficulties relating to the 2023 audit process and has brought in a new finance director as well as a consultant to assist with correcting the books and records and to re-establish appropriate procedures for vouchering and reconciliations during 2024 and forward.

Condition – Management reviewed expenditures to determine alignment with cash drawdowns which was evidenced by approved draw down requests. However, due to limitations in the recordkeeping practices at the time, this alignment was not easily trackable in the financial records. Cause – Turnover of finance director with insufficient supporting financial records. Criteria – Federal draw downs are done after expenditures have been incurred. Support should be maintained to corroborate timing of expenditures. Effect – Based on the data in the general ledger, we reviewed the timing of expenditures yet cannot determine for certain if there were timing issues. Recommendation – Maintain a listing of expenditures in the general ledger system that correspond with each cash drawdown request. This list should be reviewed and approved prior to each drawdown occurring. Management’s Response – Management is aware of the difficulties relating to the 2023 audit process and has brought in a new finance director as well as a consultant to properly identify expenditures in the general ledger/accounting system that correspond with each drawdown request that occurred during 2024 and forward.

Condition – Uniform guidance audit was not submitted to Federal Audit Clearinghouse (FAC) by due date of September 30, 2024. Cause – Turnover in the finance team and a delay in reconciling accounts. Criteria – Uniform guidance audits are required to be submitted no later than nine months after fiscal year-end. Effect – This will result in other than low risk auditee status. Recommendation – All reconciliations and audit related materials should be available on a timely basis to ensure timely submission to FAC by the end of September. Management’s Response – Management is aware of the difficulties relating to the 2023 audit process and has brought in a new finance director as well as a consultant to assist with correcting the books and records and to re-establish appropriate procedures for vouchering and reconciliations during 2024 and forward.