Finding Text
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.
Cause Due to staff turnover during 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 filed late with numerous regulatory agencies.
Questioned costs None
Repeat finding No
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.