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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2022-001: 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 33 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
2022-002: 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. We also noted transactions were recorded in the incorrect period.
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. We further recommend that care be taken to ensure that all transactions are recorded in the correct period.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 33 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
2022-003: 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 33 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, 16 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: This is a repeat finding from the immediate previous audit.
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 34 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
2023-001: Treasurer’s Review of Reconciliations
Criteria: Management and the Board of Directors are responsible for the preparation of the basic financial statements and all accompanying information as well as representations contained therein, and the fair presentation in conformity with U.S. generally accepted accounting principles. This requires management and the Board of Directors to perform month-end closing procedures to reconcile all accounts held by the Corporation.
Condition: The Treasurer of the Corporation and Management do not review reconciliations of bank accounts held by the Corporation, nor do they review bank statements. Reconciliations of the Corporation’s bank accounts are performed outside of the accounting software used by the Corporation. Reconciliations of accounts are not completed on a timely basis, which results in duplicate payments as well as failure to record material transactions in the accounting software on a timely basis.
Effect: Lack of proper review and approval of reconciliation reports and bank statements could result in errors or failure to identify misappropriation of assets on a timely basis. Reconciling bank accounts outside of the accounting software could result in failure to identify errors and misappropriation of assets on a timely basis.
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 the Treasurer or Management review all bank account statements and reconciliations on a monthly basis. We further recommend that all reconciliations are completed within the accounting software for the Corporation.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-002: Checks to Cash
Criteria: Management of the Corporation is responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted a check written to “cash” for bonuses. The Fiscal Officer took the check to the bank and received cash, then returned to the office to allocate to employees. The Fiscal Officer did not maintain a record of how the funds were allocated and employees were not required to sign for cash.
Effect: Checks written to cash can be cashed by anyone with possession of the check. This creates a difficult paper trail as well as the associated risk of loss from misplacing the check.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that checks are not written to cash. All checks written by the Corporation should contain a payee.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 34 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
2023-003: Bonus Payments
Criteria: Management and the Board of Directors of the Corporation are responsible for establishing and maintaining a system of internal controls over financial reporting and implementing policies and procedures for financials, as well as implementing adequate segregation of duties.
Condition: During our audit, we noted the employees received cash bonuses, which were not processed as payroll transactions with associated withholding taxes and liabilities.
Effect: Payments to employees that are not recorded and reported to the Internal Revenue Service could result in penalties and fines for the Corporation as well as penalties and fines to the employees individually.
Cause: Internal controls were not properly designed or implemented.
Identification of a repeat finding: This is a repeat finding from the immediate previous audit.
Recommendation: We recommend that all payments to employees and contractors be recorded and reported to the Internal Revenue Service to ensure that the Corporation does not incur future penalties and fines.
Views of responsible officials and planned corrective actions: The Corporation agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 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
2024-001: Approval for expenditures
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. Approvals should be noted on all expenditures by an individual outside of the recordkeeping and custody functions to provide reasonable assurance that transactions are allowable and appropriate for the Organization.
Condition: The Organization does not consistently document an approval process on source documents for expenditure.
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 source documents are consistently approved by a member of management prior to payment.
Identification of a repeat finding: No.
Recommendation: We recommend that a member of management or the Board of Directors review and authorize all disbursements, as well as travel reimbursements. This authorization should be evidenced by the initialing of each disbursement reviewed. We also recommend that care be taken to ensure the payee is not approving reimbursements to themselves and that a member of the Board approves those reimbursements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 35 in this audit report.