Finding Text
Program: all programs, the Organization is required to have sufficient internal controls in place over the preparation of Schedules, including accurately reflecting all state and federal funding received. The Organization erroneously identified certain federal grants as state funded grants on the Schedules. Cause: the Organization receives many grants that get renewed annually, including the two grants selected as part of single audit procedures. Since 2016 and 2019, respectively, these grants have been renewed on an annual basis and through all those years have been a state funded grant. In 2023, the funding sources switched to federal dollars and staff failed to recognize that change. Effect: the schedules did not accurately reflect the total state and federal funding for the year, which lead to additional programs that were required to be tested. Recommendation: We recommend that the Organization perform a thorough review of all funding received each year with a focus on any new funds received, to determine whether it is federal or state funded.This should occur prior to the finalization of the schedules for the year.