FAC Explorer

Finding 1155930 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-29
Audit: 368358
Organization: Northwestern Illinois Community Action Agency (IL)
Auditor: Benning Group

AI Summary

  • Core Issue: Management must ensure effective internal controls and accurate financial statements, but material audit differences were found during the 2024 audit.
  • Impacted Requirements: The lack of sufficient accounting staff and external support has led to significant adjustments needed for GAAP compliance.
  • Recommended Follow-Up: Consider hiring additional accounting staff or contracting an external firm to improve financial statement preparation and internal controls.

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 2024 financial audit. NICAA has limited staff working in the accounting office and does not currently contract with any outside accounting firm to assist with financial statement preparation. Several material audit adjustements were necessary to arrive at accurate financial statements.

Corrective Action Plan

To address the issues that resulted in material audit adjustments during FY2024, we will be implementing a new grant and accounting system designed to improve financial accuracy, oversight, and reporting. This system will replace outdated processes that contributed to the inconsistencies identified during the audit.

Categories

Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $2.31M
93.600 Head Start $1.64M
93.569 Community Services Block Grant $191,574
81.042 Weatherization Assistance for Low-Income Persons $130,705
10.558 Child and Adult Care Food Program $76,254
93.568 Low-Income Home Energy Assistance $31,601