Finding Text
Type of Finding: Significant Deficiency in Internal Controls of Major Programs
•Criteria: Caritas Family Solutions is responsible for implementing and documenting controls over
compliance with earmarking requirements.
•Condition: The audit revealed that there was no defined internal control process in place to monitor and
ensure compliance with the earmarking compliance requirements.
Cause: The absence of an internal control process for earmarking compliance may result from a lack of
clear procedures, oversight, or the failure to establish and implement necessary controls.
•Effect: The lack of an internal control process to oversee earmarking compliance requirements raises
concerns about the grant's adherence to its intended use, potentially jeopardizing the grant's integrity
and purpose.
•Recommendation: The Organization should establish and document an internal control process that
ensures compliance with earmarking requirements. This process should include clear procedures,
monitoring, and reporting mechanisms.
•Responsible Party: Gary Huelsmann, Chief Executive Officer
•Management Response: Caritas Family Solutions acknowledge the finding and are committed to
establishing and enforcing internal control procedures for earmarking compliance requirements. We
will work to improve our oversight and compliance in this regard.
A compliance team from the QI Department will be appointed to ensure that the program adheres
to all compliance requirements.
The compliance team will work closely with the PM to coordinate and delegate tasks to determine
how and what data will be collected.
The compliance team will work closely with the PM to determine who has responsibility for data
entry, compilation, and processing.
The compliance team will assist the program in creating a process for maintaining, storing, and
securing data for the required period.
The compliance team will review compliance throughout the life of the grant and adjust, as
necessary.
•Anticipated Completion Date: The process will be implemented on January 3, 2024, and will be
continually updated to align with best practices.