Finding 10938 (2023-009)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-01-31
Audit: 14751
Auditor: Armanino

AI Summary

  • Core Issue: There is a significant lack of defined internal controls for performance reporting compliance at Caritas Family Solutions.
  • Impacted Requirements: This weakness affects the organization's ability to ensure accurate and timely performance reports, which are crucial for compliance with major program requirements.
  • Recommended Follow-Up: Establish clear procedures for performance report reviews, appoint a compliance team, and implement internal audits to enhance oversight and compliance by January 3, 2024.

Finding Text

Type of Finding: Material Weakness in Internal Control over Compliance of Major Programs •Criteria: Caritas Family Solutions is responsible for implementing and documenting internal controls over performance reporting to ensure accuracy and compliance with major program requirements. •Condition: During the audit, it was observed that there were no defined internal controls in place to oversee and ensure compliance with performance reporting requirements. •Cause: The absence of internal controls for performance reporting compliance may result from a lack of established procedures, oversight, or misunderstanding of reporting compliance requirements. Effect: The lack of internal controls hinders the Organization's ability to monitor and ensure compliance with performance reporting requirements, potentially affecting the accuracy and timeliness of performance reports. •Recommendation: The Organization should promptly establish and enforce clear procedures for reviewing performance reports, including requiring review by program or executive management before submission to the granting agency to improve the accuracy and timeliness of performance reports. •Responsible Party: Gary Huelsmann, Chief Executive Officer •Management Response and Corrective Action Plan: Caritas Family Solutions acknowledges the finding and is committed to establishing and enforcing internal control procedures for compliance with performance reporting requirements. We will work to improve our oversight and compliance in this regard. A compliance team will be appointed to ensure that the agency adheres to all compliance requirements. The compliance team will work closely with the PM to coordinate and delegate tasks to collect the data needed to complete the report. The compliance team will assist in creating a process for maintaining documentation to support what is reported. The compliance team will document the level of compliance in which internal controls are followed and report results to program and agency leadership along with recommendations for improvement. Internal audits will be conducted in preparation for external audits. •Anticipated Completion Date: The process will be implemented on January 3, 2024, and will continuously be reviewed and updated to align with best practices.

Corrective Action Plan

• Corrective Action Plan: Caritas Family Solutions acknowledges the finding and is committed to establishing and enforcing internal control procedures for compliance with performance reporting requirements. We will work to improve our oversight and compliance in this regard. o A compliance team will be appointed to ensure that the agency adheres to all compliance requirements. o The compliance team will work closely with the PM to coordinate and delegate tasks to collect the data needed to complete the report. o The compliance team will assist in creating a process for maintaining documentation to support what is reported. o The compliance team will document the level of compliance in which internal controls are followed and report results to program and agency leadership along with recommendations for improvement. Internal audits will be conducted in preparation for external audits. • Anticipated Completion Date: The process will be implemented on January 3, 2024, and will continuously be reviewed and updated to align with best practices.

Categories

Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 10930 2023-001
    Material Weakness
  • 10931 2023-002
    Material Weakness
  • 10932 2023-003
    Significant Deficiency
  • 10933 2023-004
    Material Weakness
  • 10934 2023-005
    Material Weakness
  • 10935 2023-006
    -
  • 10936 2023-007
    -
  • 10937 2023-008
    Significant Deficiency
  • 587372 2023-001
    Material Weakness
  • 587373 2023-002
    Material Weakness
  • 587374 2023-003
    Significant Deficiency
  • 587375 2023-004
    Material Weakness
  • 587376 2023-005
    Material Weakness
  • 587377 2023-006
    -
  • 587378 2023-007
    -
  • 587379 2023-008
    Significant Deficiency
  • 587380 2023-009
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
17.235 Senior Community Service Employment Program $104,027
97.024 Emergency Food and Shelter National Board Program $14,443