Finding 1130474 (2024-004)

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

AI Summary

  • Core Issue: The Organization uses a single trial balance for both NeighborWorks and Southern Colorado Community Lending, leading to discrepancies.
  • Impacted Requirements: This practice results in inaccurate financial reporting, affecting transparency and reliability.
  • Recommended Follow-Up: Implement separate trial balances for each entity and conduct regular reconciliations to enhance internal controls.

Finding Text

Separate Trial Balances Material Weakness Condition: During the course of the audit, it was noted that the Organization currently utilizes a single trial balance for both NeighborWorks and Southern Colorado Community Lending, which resulted in several adjustments to the general ledger in order to reconcile certain balances between entities. Effect: Inaccurate financial reporting that compromise the accuracy and transparency of financial reporting between the entities. Recommendation: We recommend separate trial balances for both parent and subsidiary and regular reconciliation of intercompany balances during month end procedures to improve internal controls over financial reporting. View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

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
  • 1130471 2024-001
    Material Weakness
  • 1130472 2024-002
    Material Weakness
  • 1130473 2024-003
    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