Audit 378217

2025-001 Material audit adjustments Criteria United States generally accepted accounting principles require the Organization to maintain a complete and accurate general ledger. Condition Our audit procedures for grant revenue and grant receivables revealed material journal entries necessary to report the Organization’s financial statement in accordance with United States generally accepted accounting principles. Cause The Organization’s employee responsible for providing a complete and accurate general ledger did not maintain a complete and accurate general ledger throughout the year.As a result of this material weakness, the Organization’s management and governance are not provided with a complete and accurate picture of the Organization’s financial performance and position on a timely basis. Recommendation We recommend that the Organization put a fiscal agent in place that can maintain a complete and accurate general ledger. Views of management Management concurs and has placed a new fiscal agent in place who will record activity as earned in accordance with generally accepted accounting principles.

2025-002 Timely Bank Reconciliations and Reporting of Financial Activity Information on federal program WIOA Cluster – Federal Assistance Numbers 17.258, 17.259, 17.278 Criteria Generally accepted accounting principles and sound internal controls require that all financial transactions are recorded in the general ledger and that bank reconciliations are performed promptly, typically on a monthly basis within fifteen days of the previous month end. Timely reconciliations are essential to ensure the completeness and accuracy of financial records and to detect errors or irregularities in a timely manner. Additionally, grant contracts require timely filing of close-out packages for all grant awards. Condition The results of our engagements disclosed that bank reconciliations were not being performed and certain transactions were not being recorded to the general ledger during the last three quarters of the year. This resulted in discrepancies between the actual activity of the Organization and what was reported on the general ledger. Additionally, close-out packets were not filed timely as required by the Cause The Organization’s previous fiscal agent discontinued doing these key duties despite management and governance attempts to obtain this information. Additionally, staffing shortages and turnover created filing delays on close-out packets required by multiple of the Organization’s grants. Effect The lack of timely reconciliations and incomplete recording of transactions increases the risk of undetected errors, misstatements, or potential fraud. It also impairs the reliability of the financial statements and may result in noncompliance with federal grant requirements for maintaining accurate financial records. Untimely filing of required information could impact the funding of the Organization Recommendation We recommend that management implement procedures to ensure bank reconciliations are performed with fifteen days of each month-end and that all of the Organization’s activity is promptly recorded in the general ledger. Additionally, we recommend that management consider fulfilling additional roles to ensure close-out packets are filed timely. Views of Management Management concurs. A new employee has been put in place in the fiscal agent role. Bank reconciliations have all been performed and are now complete and free from error. The general ledger has now been corrected to reflect all of the activity of the Organization and close-out packets will be filed on time going forward.