Criteria – Organizations are required to maintain their accounting records in accordance with generally accepted accounting principles (GAAP).
Condition – During the audit, significant adjusting entries were proposed and made:
• An entry to reverse $40,000 in contributions revenue for recognized in the prior year.
• An entry to record $100,430 in in-kind contributions received in 2023.
• An entry to record $40,000 in accrued interest on the SBA loan.
• An entry to record $106,222 to record government grants receivable and revenue.
• An entry to record a $50,000 foundation pledge.
• An entry to capitalize $41,190 of equipment purchase in accordance with Listening House’s capitalization policy.
• An entry of $25,000 to record the second half of a two-year pledge.
• An entry to record two capital campaign pledges totaling $681,980.
Cause – There was a breakdown in the internal controls over the review of internal financial statements.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – Yes.
Recommendation – Management and the board should establish a process for regular review of its consolidated financial statements with its contracted accountant to ensure activity is recorded in accordance with GAAP.
Auditee's comments and response – Management and its contracted accounting staff will monitor financial reports and activities of Listening House to ensure proper recording.
Responsible party for the corrective action – Molly Jalma, Executive Director
Criteria – Organizations are required to maintain their accounting records in accordance with generally accepted accounting principles (GAAP).
Condition – During the audit, significant adjusting entries were proposed and made:
• An entry to reverse $40,000 in contributions revenue for recognized in the prior year.
• An entry to record $100,430 in in-kind contributions received in 2023.
• An entry to record $40,000 in accrued interest on the SBA loan.
• An entry to record $106,222 to record government grants receivable and revenue.
• An entry to record a $50,000 foundation pledge.
• An entry to capitalize $41,190 of equipment purchase in accordance with Listening House’s capitalization policy.
• An entry of $25,000 to record the second half of a two-year pledge.
• An entry to record two capital campaign pledges totaling $681,980.
Cause – There was a breakdown in the internal controls over the review of internal financial statements.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – Yes.
Recommendation – Management and the board should establish a process for regular review of its consolidated financial statements with its contracted accountant to ensure activity is recorded in accordance with GAAP.
Auditee's comments and response – Management and its contracted accounting staff will monitor financial reports and activities of Listening House to ensure proper recording.
Responsible party for the corrective action – Molly Jalma, Executive Director
Criteria – A good system of internal controls contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion.
Condition – The limited number of staff of Listening House does not facilitate the segregation of duties necessary to achieve a low level.
Cause – Listening House’s size and budget constraints limit the number of personnel and does not allow.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – Yes.
Recommendation – Management, the contract accountant, and the Board of Listening House should remain involved on the financial affairs of Listening House on a regular basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation.
Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of Listening House.
Responsible party for the corrective action – Molly Jalma, Executive Director
Criteria – A good system of internal controls contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion.
Condition – The limited number of staff of Listening House does not facilitate the segregation of duties necessary to achieve a low level.
Cause – Listening House’s size and budget constraints limit the number of personnel and does not allow.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – Yes.
Recommendation – Management, the contract accountant, and the Board of Listening House should remain involved on the financial affairs of Listening House on a regular basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation.
Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of Listening House.
Responsible party for the corrective action – Molly Jalma, Executive Director
Criteria – The Data Collection Form for the year ended September 30, 2022, was not submitted to the Federal Audit Clearinghouse by the June 30, 2023, deadline.
Condition – There are inadequate internal controls in place to ensure that the Organization’s financial statement audit is completed in a manner to allow the Data Collection Form to be filed by the reporting deadline.
Cause – There were delays in completing the 2022 audit.
Effect – Management was not in compliance with the requirements of the Uniform Guidance.
Repeat Finding – No.
Recommendation – We recommend that management enhance its internal controls, policies and procedures to ensure that all filing requirements under federal awards are met.
Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of Listening House.
Responsible party for the corrective action – Molly Jalma, Executive Director
Criteria – The Data Collection Form for the year ended September 30, 2022, was not submitted to the Federal Audit Clearinghouse by the June 30, 2023, deadline.
Condition – There are inadequate internal controls in place to ensure that the Organization’s financial statement audit is completed in a manner to allow the Data Collection Form to be filed by the reporting deadline.
Cause – There were delays in completing the 2022 audit.
Effect – Management was not in compliance with the requirements of the Uniform Guidance.
Repeat Finding – No.
Recommendation – We recommend that management enhance its internal controls, policies and procedures to ensure that all filing requirements under federal awards are met.
Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of Listening House.
Responsible party for the corrective action – Molly Jalma, Executive Director
Criteria – Under generally accepted accounting principles (GAAP), not-for-profit organizations are required to track and record donated goods and materials. In addition, donated materials in excess of $25,000 have additional reporting requirements on an organization’s federal Form 990.
Condition – Donated materials received during the year were not accurately tracked and recorded. Support requested for audit testing did not agree to amounts recorded.
Cause – There was change in staffing with those responsible for in-kind donation tracking and the same level of focus on tracking was not maintained.
Effect – Management was not in compliance with the requirements of GAAP.
Repeat Finding – No.
Recommendation – We recommend that management enhance its internal controls, policies and procedures to ensure that all in-kind contributions are properly tracked, valued, and recorded.
Auditee's comments and response – Management will implement a process to properly track and record in-kind donations.
Responsible party for the corrective action – Molly Jalma, Executive Director.
Criteria – Under generally accepted accounting principles (GAAP), not-for-profit organizations are required to track and record donated goods and materials. In addition, donated materials in excess of $25,000 have additional reporting requirements on an organization’s federal Form 990.
Condition – Donated materials received during the year were not accurately tracked and recorded. Support requested for audit testing did not agree to amounts recorded.
Cause – There was change in staffing with those responsible for in-kind donation tracking and the same level of focus on tracking was not maintained.
Effect – Management was not in compliance with the requirements of GAAP.
Repeat Finding – No.
Recommendation – We recommend that management enhance its internal controls, policies and procedures to ensure that all in-kind contributions are properly tracked, valued, and recorded.
Auditee's comments and response – Management will implement a process to properly track and record in-kind donations.
Responsible party for the corrective action – Molly Jalma, Executive Director.
Criteria – Organizations are required to maintain their accounting records in accordance with generally accepted accounting principles (GAAP).
Condition – During the audit, significant adjusting entries were proposed and made:
• An entry to reverse $40,000 in contributions revenue for recognized in the prior year.
• An entry to record $100,430 in in-kind contributions received in 2023.
• An entry to record $40,000 in accrued interest on the SBA loan.
• An entry to record $106,222 to record government grants receivable and revenue.
• An entry to record a $50,000 foundation pledge.
• An entry to capitalize $41,190 of equipment purchase in accordance with Listening House’s capitalization policy.
• An entry of $25,000 to record the second half of a two-year pledge.
• An entry to record two capital campaign pledges totaling $681,980.
Cause – There was a breakdown in the internal controls over the review of internal financial statements.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – Yes.
Recommendation – Management and the board should establish a process for regular review of its consolidated financial statements with its contracted accountant to ensure activity is recorded in accordance with GAAP.
Auditee's comments and response – Management and its contracted accounting staff will monitor financial reports and activities of Listening House to ensure proper recording.
Responsible party for the corrective action – Molly Jalma, Executive Director
Criteria – Organizations are required to maintain their accounting records in accordance with generally accepted accounting principles (GAAP).
Condition – During the audit, significant adjusting entries were proposed and made:
• An entry to reverse $40,000 in contributions revenue for recognized in the prior year.
• An entry to record $100,430 in in-kind contributions received in 2023.
• An entry to record $40,000 in accrued interest on the SBA loan.
• An entry to record $106,222 to record government grants receivable and revenue.
• An entry to record a $50,000 foundation pledge.
• An entry to capitalize $41,190 of equipment purchase in accordance with Listening House’s capitalization policy.
• An entry of $25,000 to record the second half of a two-year pledge.
• An entry to record two capital campaign pledges totaling $681,980.
Cause – There was a breakdown in the internal controls over the review of internal financial statements.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – Yes.
Recommendation – Management and the board should establish a process for regular review of its consolidated financial statements with its contracted accountant to ensure activity is recorded in accordance with GAAP.
Auditee's comments and response – Management and its contracted accounting staff will monitor financial reports and activities of Listening House to ensure proper recording.
Responsible party for the corrective action – Molly Jalma, Executive Director
Criteria – A good system of internal controls contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion.
Condition – The limited number of staff of Listening House does not facilitate the segregation of duties necessary to achieve a low level.
Cause – Listening House’s size and budget constraints limit the number of personnel and does not allow.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – Yes.
Recommendation – Management, the contract accountant, and the Board of Listening House should remain involved on the financial affairs of Listening House on a regular basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation.
Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of Listening House.
Responsible party for the corrective action – Molly Jalma, Executive Director
Criteria – A good system of internal controls contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion.
Condition – The limited number of staff of Listening House does not facilitate the segregation of duties necessary to achieve a low level.
Cause – Listening House’s size and budget constraints limit the number of personnel and does not allow.
Effect – A material misstatement of the consolidated financial statements occurred and was not detected.
Repeat Finding – Yes.
Recommendation – Management, the contract accountant, and the Board of Listening House should remain involved on the financial affairs of Listening House on a regular basis to provide oversight and independent review functions and mitigate the weakness created by the lack of segregation.
Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of Listening House.
Responsible party for the corrective action – Molly Jalma, Executive Director
Criteria – The Data Collection Form for the year ended September 30, 2022, was not submitted to the Federal Audit Clearinghouse by the June 30, 2023, deadline.
Condition – There are inadequate internal controls in place to ensure that the Organization’s financial statement audit is completed in a manner to allow the Data Collection Form to be filed by the reporting deadline.
Cause – There were delays in completing the 2022 audit.
Effect – Management was not in compliance with the requirements of the Uniform Guidance.
Repeat Finding – No.
Recommendation – We recommend that management enhance its internal controls, policies and procedures to ensure that all filing requirements under federal awards are met.
Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of Listening House.
Responsible party for the corrective action – Molly Jalma, Executive Director
Criteria – The Data Collection Form for the year ended September 30, 2022, was not submitted to the Federal Audit Clearinghouse by the June 30, 2023, deadline.
Condition – There are inadequate internal controls in place to ensure that the Organization’s financial statement audit is completed in a manner to allow the Data Collection Form to be filed by the reporting deadline.
Cause – There were delays in completing the 2022 audit.
Effect – Management was not in compliance with the requirements of the Uniform Guidance.
Repeat Finding – No.
Recommendation – We recommend that management enhance its internal controls, policies and procedures to ensure that all filing requirements under federal awards are met.
Auditee's comments and response – Management, the Board, and its contracted accounting staff will regularly monitor financial reports and activities of Listening House.
Responsible party for the corrective action – Molly Jalma, Executive Director
Criteria – Under generally accepted accounting principles (GAAP), not-for-profit organizations are required to track and record donated goods and materials. In addition, donated materials in excess of $25,000 have additional reporting requirements on an organization’s federal Form 990.
Condition – Donated materials received during the year were not accurately tracked and recorded. Support requested for audit testing did not agree to amounts recorded.
Cause – There was change in staffing with those responsible for in-kind donation tracking and the same level of focus on tracking was not maintained.
Effect – Management was not in compliance with the requirements of GAAP.
Repeat Finding – No.
Recommendation – We recommend that management enhance its internal controls, policies and procedures to ensure that all in-kind contributions are properly tracked, valued, and recorded.
Auditee's comments and response – Management will implement a process to properly track and record in-kind donations.
Responsible party for the corrective action – Molly Jalma, Executive Director.
Criteria – Under generally accepted accounting principles (GAAP), not-for-profit organizations are required to track and record donated goods and materials. In addition, donated materials in excess of $25,000 have additional reporting requirements on an organization’s federal Form 990.
Condition – Donated materials received during the year were not accurately tracked and recorded. Support requested for audit testing did not agree to amounts recorded.
Cause – There was change in staffing with those responsible for in-kind donation tracking and the same level of focus on tracking was not maintained.
Effect – Management was not in compliance with the requirements of GAAP.
Repeat Finding – No.
Recommendation – We recommend that management enhance its internal controls, policies and procedures to ensure that all in-kind contributions are properly tracked, valued, and recorded.
Auditee's comments and response – Management will implement a process to properly track and record in-kind donations.
Responsible party for the corrective action – Molly Jalma, Executive Director.