Audit 381654

Segregation of Duties, Condition: Organization does not have adequate segregation of duties over accounting function at their outlying locations. Criteria: Appropriate segregation of duites consistent with control objectives. Effect: There is a higher risk that errors or misappropriation of funds could occur and not be detected in a timely manner. Cause: Limited personnel, it is impractical to hire additional staff in order to improve. Recommendation: Management should have close supervision and review accounting information.

Preparation of Financial Statements. Condition: The Organization relies on its audit firm to assist in preparing its financial statements, accompanying disclosures, supplemental schedules and adjusting journal entries. However, as independent auditors, the audit frim cannot be considered part of the Organizaiton's internal control system. Criteria: Preparation of financial statements, related disclosures, supplemental schedules and adjusting journal entries in accordance with the accounting principles generally accepted in the United States of America. Effect: As a result of this condition, there is a higher risk that any potential material omissions or other errors would not be identied and corrected. Cause: Adjusting journal entries were made during the audit that were material in nature. Recommendation: Management should remain alert to revisions in accounting standards. In addition, management should closely review financial statements and hold regular discussions with its assurance service providers concerning new accounting principles. Response: We will continue to review the financial statements, related disclosures and supplemental schedules prior to issuance.

Late filing of required audit report. Condition: The single audit reort is required to be submitted the earlier of 30 calendar days after the auditee receives the auditor's report or nine months after the end of the audit period. The auditee failed to meet this deadline. Effect: The Organization will be a high risk auditee and funding may be delayed. Cause: The finance department had a large turnover of employees at the beginning of 2025. Open positions, training and completing necessary daily accounting functions delayed audit preparation. Recommendation: Management should ensure the finance department is fully staffed with competent individuals to handle the daily accounting functions in order to allow time for prioritizing of future audits. Response: New finance personnel will prepare and prioritize future audits.

Reporting Requirement Not Completed. Condition: Grants and contracts for government fundng include reporting requirements of the recipient. Criteria: All reporting requirements should be met in a timely fashion. Effect: If not met, funding can be delayed, canceled or required to be repaid. Cause: Do to the grant deptment change in personnel, a final report was overlooked and not submitted. Recommendation: Management should implelment procedures to ensure tracking of required reports and submittals. Response: A new grants coordinator has been hired that is well versed in the reporting requirements and management will monitor to ensure timely reporting