Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-001: Segregation of Duties
Criteria: The assignment of responsibilities should be segregated so that one person is not responsible for the authorization and recording of a transaction and the custody of the related asset. There needs to be a reconciliation or control activity to provide reasonable assurance that transactions are handled appropriately.
Condition: Key duties and functions are not segregated among Corporation personnel. This is especially a concern in the cash management, accounts receivable, accounts payable, and payroll functions.
Effect: Transactions could be mishandled due to errors or fraud that could lead to loss of assets or the reporting of misleading financial information.
Cause: There are a limited number of personnel for certain functions and lack of board oversight.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that duties be segregated as best as possible with the people available. The Board should oversee these areas as much as possible.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-002: Maintenance of the General Ledger
Criteria: The Corporation is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data.
Condition: The Corporation currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. We further noted that several expenditures were not recorded in the proper accounts, and cash receipts are being recorded against expense accounts.
Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data.
Cause: There are no procedures in place to ensure records are kept on an accrual basis.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that the Corporation implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
CFDA’s: 93.044, 93.045, and 93.053
2022-003: Documentation for expenditures
Criteria: The Corporation is responsible for maintaining original documentation for all expenditures. Transactions for expenses should be evidenced by an invoice or other original documentation demonstrating the validity of the disbursement.
Condition: The Corporation does not consistently maintain documentation for all expenditures, especially those expended with the Corporation’s credit card.
Effect: Activities or costs that are not allowed or allowable could potentially be paid, as well as errors or intentional fraud could occur and not be detected timely by management in the normal course of their responsibilities.
Cause: There are no procedures in place to ensure that original source documents are obtained prior to payment.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that appropriate documentation is kept for all disbursements, and that credit card receipts are obtained for each purchase and kept with the appropriate statement.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 26 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.
Department of Health and Human Services,
Special Programs for the Aging – Title III, Aging Cluster
Assistance Listing Number(s): 93.044, 93.045, and 93.053
2022-004: Telecommunication Expenditures
Criteria: In accordance with 2 CFR Part 200, Subpart E (Cost Principles), expenditures relating to telecommunication costs and video surveillance costs are unallowable for nonprofit organizations.
Condition: Of the 60 transactions examined, 15 expenditures were for telecommunication costs.
Effect: The Corporation did not adhere to 2 CFR Part 200, Subpart E (Cost Principles) and unallowable expenditures were made with grant funds.
Cause: The Executive Director and Fiscal Officer were not aware that 2 CFR Part 200, Subpart E (Cost Principles) had been updated to include telecommunication costs as an unallowable expenditure. This update was effective for the 2021 Compliance Supplement, which was in effect for audits of fiscal years beginning after June 30, 2020. The Corporation was awarded the grant contract from Northwest Georgia Regional Commission with an approved budget period from 2021 – 2024.
Identification of a repeat finding: No.
Recommendation: We recommend that the Executive Director and Fiscal Officer review 2 CFR Part 200, Subpart E (Cost Principles) annually for various cost items to ensure that expenditures are allowable.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 28 in this audit report.