Finding 1096485 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-01-23

AI Summary

  • Core Issue: Material audit differences were found in the 2023 financial statements due to inadequate internal controls.
  • Impacted Requirements: NICAA's financial statements did not fully comply with GAAP due to insufficient staffing and oversight.
  • Recommended Follow-Up: Ensure the outside accounting firm identifies all necessary adjustments for accurate financial reporting moving forward.

Finding Text

Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements, including the related disclosures, in conformity with GAAP. Material audit differences were identified during the 2023 financial audit. NICAA has limited staff working in the accounting office. In 2024, NICAA contracted with an outside accounting firm to assist in preparation of adjustments needed for proper presentation of its 2023 financial statements. Since this relationship was new in 2024, not all material adjustments were identified during the financial close process.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 520043 2023-001
    Significant Deficiency
  • 520044 2023-002
    Significant Deficiency Repeat
  • 1096486 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $1.77M
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $362,205
93.568 Low-Income Home Energy Assistance $342,264
93.569 Community Services Block Grant $183,705
81.042 Weatherization Assistance for Low-Income Persons $127,223
10.558 Child and Adult Care Food Program $90,404