Audit 398306

Inadequate controls over the preparation of accounting records. Type of Finding Material Weakness Criteria Per 2 CFR 200, internal control for recipients and subrecipients should have processes designed and implemented to provide reasonable assurance regarding the 1)effectiveness and efficiency of operations; 2) reliability of reporting for internal and external use; and 3) compliance with applicable laws and regulations. Condition Organization employees performing their assigned duties were unable to timely reconcile accounts to subsidiary records or timely identify billing issues and concerns resulting in under billings on grants and material adjustments as part of the audit process. In addition, numerous authorization controls and controls over reporting were circumvented resulting in transactions being incorrectly posted in the account records. The Organization implanted a new general ledger software package and procedures were not in place to ensure that balances were appropriately transferred with sufficient detail to allow for proper treatment in the current period. Cause Due to staff turnover before, during and shortly after the audit period, the Organization had not developed policies, procedures and controls to provide for the appropriate monitoring of accounting procedures, nor had they developed a succession plan in the event of significant employee turnover. Effect The Organization’s books and records were not timely available for audit thus causing the audit to be filed late with numerous regulatory agencies. Questioned costs None Repeat finding Yes, 2023-001 Recommendation The Organization should develop policies, procedures and controls to ensure that accounts are reconciled on a timely basis by employes performing their assigned duties and monitoring is performed to ensure such is completed. View of Management Management concurs with the above finding.

Late filing of required reports Type of Finding Material Weakness Criteria Per the Uniform Guidance, section 200.507, paragraph c, subparagraph 1, the Organization’s audit must be completed and submitted withing 30 calendar days after the Organization receives the auditor’s report or nine months after the end of the audit period (whichever is earlier) Condition The Organization did not timely file their annual audit with Federal Audit Clearinghouse. Cause Due to staff turnover during the audit period the Organization was unable to provide the records necessary to timely complete the audit of their financial statements. Effect The Organization’s audit reports for the current and prior year were not filed timely with the Federal Audit Clearinghouse as per the requirements of the Uniform Guidance. Questioned costs None Repeat finding Yes, 2023-002 Recommendation The Organization should develop policies, procedures and controls to ensure that accounts are reconciled on a timely basis by employes performing their assigned duties and monitoring is performed to ensure such is completed. View of Management Management concurs with the above finding.