Audit 394245

Finding: 2022-001 Material weakness – Improper review and year end close Grant Number: N/A Criteria: Prevent Child Abuse Utah should have policies and procedures in place to ensure that general ledger accounts are properly reconciled and adjusted to correctly reflect the balance in general ledger accounts. In addition, these policies and procedures should encompass the preparation of the financial statements, including disclosures. Condition: In connection with the audit procedures performed, certain accounts were noted to be inappropriately reflected in the general ledger. Adjustments were required to certain year-end general ledger accounts. Prevent Child Abuse Utah’s system of internal control did not include controls over the preparation of financial statements and related disclosures. Questioned Costs: None noted Context and Effect: Adjustments were required to properly state certain general ledger account balances. The classifications and disclosures in the financial statements could be incomplete or incorrect and not be detected by management. Cause: Prevent Child Abuse Utah’s year-end process did not detect all necessary adjustments. With respect to the preparation of the financial statements, Prevent Child Abuse Utah’s internal control system is not designed to provide for the full preparation of the financial statements being audited. Repeat Finding: Yes Recommendation: Prevent Child Abuse Utah should strengthen its year-end financial close process to ensure the proper closing and review of account balances. Prevent Child Abuse Utah’s internal control system does not provide for the preparation of a complete set of financial statements. We recommend that Prevent Child Abuse Utah evaluate the ongoing benefits and expenses of including this element into its system of internal control. Response Management agrees with this finding.

Criteria: According to 2 CFR § 200.512(a), auditees must submit the data collection form and reporting package within nine months after the end of the audit period or 30 days after receiving the auditor’s report, whichever is earlier. Condition: The entity did not submit its Single Audit report to the Federal Audit Clearinghouse (FAC) within the required deadline of nine months after the fiscal year-end. Questioned Costs: None noted Context and Effect: The late submission could result in noncompliance with federal grant requirements, potential withholding of future federal funding, and reputational harm to the entity. Cause: The delay was due to inadequate internal controls over the audit process, including lack of proper monitoring of deadlines, delayed financial statement preparation, and coordination issues between the entity and the external auditor. Repeat Finding: No Recommendation: Management should establish and implement a robust tracking system to monitor reporting deadlines, ensure timely financial statement preparation, and improve coordination with external auditors. Additionally, assigning a compliance officer or designated staff member responsible for tracking audit progress and submission deadlines can help prevent future delays. Response Management agrees with this finding.