Audit 44182

CFDA 64.033 US Department of Veterans Affairs Supportive Services for Veteran Families (SSVF) Findings - Financial Statement Audit 2022-001 Condition: Balances in the financial statements did not tie to supporting documentation, or were not prepared in accordance with GAAP, in the accounts of accounts receivable, investments, accounts payable, accrued vacation, in-kind donations, net assets, grant income and expenses. Effect: The auditor discovered multiple material misstatements that resulted in adjusting journal entries. Cause: The outsourced accounting firm took over the accounting for the Organization and reconciled the accounts, but did not complete the accounts receivable, net asset or grants revenue reconciliations. In addition, the firm did not complete cutoff procedures and recorded in-kind donations that were not in accordance with GAAP. Criteria: The Organization?s staff and outsourced professional services firm should maintain the proper skills, knowledge, and experience to successfully and competently manage the responsibilities of his or her position. Recommendation: It is recommended that the Board of Directors and management continue to work with the outsourced accounting firm to more accurately process the transactions of the Organization, ensuring that all accounts are properly reconciled and significant year-end accruals are made. Response: The outsourced accounting firm reviewed transactions from several periods prior to the period under audit and made corrections that impacted several accounts. The accounts clean-up improved the condition of the records, however the reconciliation process for all accounts was not completed in time for the audit to be performed. The Organization will continue to evaluate the results of the outsourced accounting firm and anticipates further improvements and accuracy. Note: This is a repeat finding.

CFDA 64.033 US Department of Veterans Affairs Supportive Services for Veteran Families (SSVF) Findings - Financial Statement Audit 2022-001 Condition: Balances in the financial statements did not tie to supporting documentation, or were not prepared in accordance with GAAP, in the accounts of accounts receivable, investments, accounts payable, accrued vacation, in-kind donations, net assets, grant income and expenses. Effect: The auditor discovered multiple material misstatements that resulted in adjusting journal entries. Cause: The outsourced accounting firm took over the accounting for the Organization and reconciled the accounts, but did not complete the accounts receivable, net asset or grants revenue reconciliations. In addition, the firm did not complete cutoff procedures and recorded in-kind donations that were not in accordance with GAAP. Criteria: The Organization?s staff and outsourced professional services firm should maintain the proper skills, knowledge, and experience to successfully and competently manage the responsibilities of his or her position. Recommendation: It is recommended that the Board of Directors and management continue to work with the outsourced accounting firm to more accurately process the transactions of the Organization, ensuring that all accounts are properly reconciled and significant year-end accruals are made. Response: The outsourced accounting firm reviewed transactions from several periods prior to the period under audit and made corrections that impacted several accounts. The accounts clean-up improved the condition of the records, however the reconciliation process for all accounts was not completed in time for the audit to be performed. The Organization will continue to evaluate the results of the outsourced accounting firm and anticipates further improvements and accuracy. Note: This is a repeat finding.