Finding 1113679 (2024-002)

Finding 2024-002 – Controls over Monitoring (Material Weakness) Criteria The Organization is responsible for designing controls that meet industry and Uniform Guidance standards through evidential documentation to support that the control was performed. Conditions and Context We noted in our review of controls and walkthroughs of major transaction cycles that there was no evidence that bank reconciliations and general journal entries prepared by the Finance Officer were reviewed and approved by another member of management. Effect The Organization lacks adequate support and monitoring controls to meet industry and Uniform Guidance standards. Recommendation We recommend controls be improved by documenting the reviews of all reconciliations and general journal entries each month. One suggestion is to create a monthly close checklist which lists all the items to be reviewed and have the person who prepares the reconciliation or entry and the person who reviews it sign and date as the items are completed. Agency Response: LearningWorks has been working with an external accounting consultant since July of 2024. This seasoned CPA with valuable experience in nonprofit financial management has offered counsel and support with various issues. Moving forward, her support will include developing and executing a monthly review process in order to meet industry and Uniform Guidance standards. Additionally, we are willing to institute further recommended practices that will remediate this finding.