Finding 1130471 (2024-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-04-03

AI Summary

  • Core Issue: There is no process for monthly account reconciliations, leading to over 50 proposed adjustments to trial balances.
  • Impacted Requirements: This lack of control increases the risk of asset misappropriation and financial statement misstatements.
  • Recommended Follow-Up: Develop a detailed monthly checklist for closing procedures, including account reconciliations and responsible individuals.

Finding Text

Monthly Reconciliation and Closing Procedures Material Weakness Condition: Our audit procedures revealed that there is currently no process to ensure that monthly account reconciliation procedures take place. As a result, we proposed over 50 adjustments to the original trial balances. Criteria: Adequate internal control functions over the financial reporting process. Cause: Oversight by management. Effect: Opportunity for misappropriation of assets and that a misstatement of the Organization's financial statements will not be prevented, or detected and corrected, on a timely basis. Recommendation: We recommend that a detailed monthly checklist be developed to outline all necessary month-end closing procedures needed, including the individuals responsible for preparing and reviewing the items. As part of this checklist, each statement of financial position account should be accompanied by an account reconciliation which agrees to the general ledger. This will help improve internal controls over financial reporting. View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 554029 2024-001
    Material Weakness
  • 554030 2024-002
    Material Weakness
  • 554031 2024-003
    Material Weakness
  • 554032 2024-004
    Material Weakness
  • 554033 2024-005
    Material Weakness
  • 554034 2024-006
    Material Weakness
  • 554035 2024-007
    Material Weakness
  • 554036 2024-008
    Material Weakness
  • 1130472 2024-002
    Material Weakness
  • 1130473 2024-003
    Material Weakness
  • 1130474 2024-004
    Material Weakness
  • 1130475 2024-005
    Material Weakness
  • 1130476 2024-006
    Material Weakness
  • 1130477 2024-007
    Material Weakness
  • 1130478 2024-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $666,624
14.247 Self-Help Homeownership Opportunity Program $403,800
93.093 Health Profession Opportunity Grants $382,000
21.025 Small Dollar Loan Program $37,738
14.169 Housing Counseling Assistance Program $31,944