Audit 36709

2022-001 Grant Tracking Federal Program: Agency-wide Criteria: Adequate internal controls necessitate personnel to have knowledge and training to properly track and report grant activity. Condition: Grant activity is being net in general ledger accounts therefore understating the activity. A significant reclassification was needed to record revenue and expenses gross. Questioned Costs: Not applicable. Context: Grant activity is being accurately tracked outside of the accounting system, but the information being entered into the accounting system is not being done correctly. Effect: This weakness could result in undetected errors and irregularities and misstated financial reports, including information reported on the SEFA. Cause: Internal controls did not identify that adjustments should be recorded. Prior Year Finding: This was a prior year audit finding numbered 2021-002. Recommendation: We recommend the Organization develop a system to properly track grant activity in the accounting system. One way to do this would be creating a class in QuickBooks for each grant. This would allow management to review the spending of grant funds without the activity being net. Management?s Response: We will work with our outside accountant to develop a system to properly track grant funds and ensure the activity is being accurately reported in the accounting system.

2022-001 Grant Tracking Federal Program: Agency-wide Criteria: Adequate internal controls necessitate personnel to have knowledge and training to properly track and report grant activity. Condition: Grant activity is being net in general ledger accounts therefore understating the activity. A significant reclassification was needed to record revenue and expenses gross. Questioned Costs: Not applicable. Context: Grant activity is being accurately tracked outside of the accounting system, but the information being entered into the accounting system is not being done correctly. Effect: This weakness could result in undetected errors and irregularities and misstated financial reports, including information reported on the SEFA. Cause: Internal controls did not identify that adjustments should be recorded. Prior Year Finding: This was a prior year audit finding numbered 2021-002. Recommendation: We recommend the Organization develop a system to properly track grant activity in the accounting system. One way to do this would be creating a class in QuickBooks for each grant. This would allow management to review the spending of grant funds without the activity being net. Management?s Response: We will work with our outside accountant to develop a system to properly track grant funds and ensure the activity is being accurately reported in the accounting system.

2022-001 Grant Tracking Federal Program: Agency-wide Criteria: Adequate internal controls necessitate personnel to have knowledge and training to properly track and report grant activity. Condition: Grant activity is being net in general ledger accounts therefore understating the activity. A significant reclassification was needed to record revenue and expenses gross. Questioned Costs: Not applicable. Context: Grant activity is being accurately tracked outside of the accounting system, but the information being entered into the accounting system is not being done correctly. Effect: This weakness could result in undetected errors and irregularities and misstated financial reports, including information reported on the SEFA. Cause: Internal controls did not identify that adjustments should be recorded. Prior Year Finding: This was a prior year audit finding numbered 2021-002. Recommendation: We recommend the Organization develop a system to properly track grant activity in the accounting system. One way to do this would be creating a class in QuickBooks for each grant. This would allow management to review the spending of grant funds without the activity being net. Management?s Response: We will work with our outside accountant to develop a system to properly track grant funds and ensure the activity is being accurately reported in the accounting system.

2022-001 Grant Tracking Federal Program: Agency-wide Criteria: Adequate internal controls necessitate personnel to have knowledge and training to properly track and report grant activity. Condition: Grant activity is being net in general ledger accounts therefore understating the activity. A significant reclassification was needed to record revenue and expenses gross. Questioned Costs: Not applicable. Context: Grant activity is being accurately tracked outside of the accounting system, but the information being entered into the accounting system is not being done correctly. Effect: This weakness could result in undetected errors and irregularities and misstated financial reports, including information reported on the SEFA. Cause: Internal controls did not identify that adjustments should be recorded. Prior Year Finding: This was a prior year audit finding numbered 2021-002. Recommendation: We recommend the Organization develop a system to properly track grant activity in the accounting system. One way to do this would be creating a class in QuickBooks for each grant. This would allow management to review the spending of grant funds without the activity being net. Management?s Response: We will work with our outside accountant to develop a system to properly track grant funds and ensure the activity is being accurately reported in the accounting system.

2022-001 Grant Tracking Federal Program: Agency-wide Criteria: Adequate internal controls necessitate personnel to have knowledge and training to properly track and report grant activity. Condition: Grant activity is being net in general ledger accounts therefore understating the activity. A significant reclassification was needed to record revenue and expenses gross. Questioned Costs: Not applicable. Context: Grant activity is being accurately tracked outside of the accounting system, but the information being entered into the accounting system is not being done correctly. Effect: This weakness could result in undetected errors and irregularities and misstated financial reports, including information reported on the SEFA. Cause: Internal controls did not identify that adjustments should be recorded. Prior Year Finding: This was a prior year audit finding numbered 2021-002. Recommendation: We recommend the Organization develop a system to properly track grant activity in the accounting system. One way to do this would be creating a class in QuickBooks for each grant. This would allow management to review the spending of grant funds without the activity being net. Management?s Response: We will work with our outside accountant to develop a system to properly track grant funds and ensure the activity is being accurately reported in the accounting system.

2022-001 Grant Tracking Federal Program: Agency-wide Criteria: Adequate internal controls necessitate personnel to have knowledge and training to properly track and report grant activity. Condition: Grant activity is being net in general ledger accounts therefore understating the activity. A significant reclassification was needed to record revenue and expenses gross. Questioned Costs: Not applicable. Context: Grant activity is being accurately tracked outside of the accounting system, but the information being entered into the accounting system is not being done correctly. Effect: This weakness could result in undetected errors and irregularities and misstated financial reports, including information reported on the SEFA. Cause: Internal controls did not identify that adjustments should be recorded. Prior Year Finding: This was a prior year audit finding numbered 2021-002. Recommendation: We recommend the Organization develop a system to properly track grant activity in the accounting system. One way to do this would be creating a class in QuickBooks for each grant. This would allow management to review the spending of grant funds without the activity being net. Management?s Response: We will work with our outside accountant to develop a system to properly track grant funds and ensure the activity is being accurately reported in the accounting system.

2022-001 Grant Tracking Federal Program: Agency-wide Criteria: Adequate internal controls necessitate personnel to have knowledge and training to properly track and report grant activity. Condition: Grant activity is being net in general ledger accounts therefore understating the activity. A significant reclassification was needed to record revenue and expenses gross. Questioned Costs: Not applicable. Context: Grant activity is being accurately tracked outside of the accounting system, but the information being entered into the accounting system is not being done correctly. Effect: This weakness could result in undetected errors and irregularities and misstated financial reports, including information reported on the SEFA. Cause: Internal controls did not identify that adjustments should be recorded. Prior Year Finding: This was a prior year audit finding numbered 2021-002. Recommendation: We recommend the Organization develop a system to properly track grant activity in the accounting system. One way to do this would be creating a class in QuickBooks for each grant. This would allow management to review the spending of grant funds without the activity being net. Management?s Response: We will work with our outside accountant to develop a system to properly track grant funds and ensure the activity is being accurately reported in the accounting system.

2022-001 Grant Tracking Federal Program: Agency-wide Criteria: Adequate internal controls necessitate personnel to have knowledge and training to properly track and report grant activity. Condition: Grant activity is being net in general ledger accounts therefore understating the activity. A significant reclassification was needed to record revenue and expenses gross. Questioned Costs: Not applicable. Context: Grant activity is being accurately tracked outside of the accounting system, but the information being entered into the accounting system is not being done correctly. Effect: This weakness could result in undetected errors and irregularities and misstated financial reports, including information reported on the SEFA. Cause: Internal controls did not identify that adjustments should be recorded. Prior Year Finding: This was a prior year audit finding numbered 2021-002. Recommendation: We recommend the Organization develop a system to properly track grant activity in the accounting system. One way to do this would be creating a class in QuickBooks for each grant. This would allow management to review the spending of grant funds without the activity being net. Management?s Response: We will work with our outside accountant to develop a system to properly track grant funds and ensure the activity is being accurately reported in the accounting system.