Audit 378291

2024-001 Marie Wilkinson Food Pantry, Inc did not effectively provide oversight and monitoring of internal controls over financial reporting on a continuous and timely basis. Criteria: Management is responsible for adopting sound accounting policies and establishing and maintaining a system of internal control over financial reporting resulting in the fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. The system of internal control over financial reporting should be applied on a continuous and timely basis by internal personnel and should include a component of oversight and monitoring by those charged with governance. Cause: Because of a change in personnel during 2024, the accounts and reconciliations of the Organization were not timely prepared and thoroughly analyzed and reviewed by management for accuracy and completeness such that they could be relied upon for fair presentation in the audited financial statements. Effect: Inaccurate financial reporting as evidenced by the need for material post-closing adjustments, including numerous material reversals of double-booked entries, deprived management and the Board of Directors of the opportunity to prevent and detect material errors. The overlooked double-booked entries also led to material inaccurate financial reporting in relation to the major federal program. Recommendation: The Organization should consider the allocation of personnel resources (e.g. an employee dedicated specifically to accounting or contracting with an outside bookkeeper) to the internal preparation of both monthly and year-end financial statements, along with a comprehensive review process and oversight by those charged with governance, to properly monitor financial reporting and internal controls over compliance to ensure completeness and accuracy throughout the year. Auditee Response and Corrective Action Plan: Management concurs with the finding. The Organization should design and implement a comprehensive review process for all significant general ledger accounts to ensure that they are reconciled to underlying supporting documentation in a continuous and timely manner throughout the fiscal year.

2024-002 The organization did not submit the reporting package. Criteria: In accordance with 2 CFR §200.512(a), the auditee must submit the data collection form and the reporting package to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period. Cause: The delay in submission was due to a change in the Organization’s executive director during the fiscal year. The leadership transition resulted in changes to key administrative responsibilities and communication processes, which contributed to the delay in completing the submission. Effect: Failure to submit the reporting package by the required deadline constitutes noncompliance with the Uniform Guidance reporting requirements and may affect the Organization’s standing in federal compliance reporting. Continued delays could also impact future funding opportunities or result in additional oversight from granting agencies. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend that the Organization strengthen internal controls over the audit submission process to ensure timely filing with the Federal Audit Clearinghouse. This may include assigning responsibility for the submission to a specific staff member and developing a compliance calendar to monitor critical federal reporting deadlines, particularly during periods of leadership transition. Auditee Response and Corrective Action Plan: Management concurs with the finding. The Organization will update its year-end and audit procedures to designate a responsible party for monitoring and completing the FAC submission process. The Organization will also include the due date as part of its audit closing checklist to ensure future submissions are made timely.