Finding 11565 (2023-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-02-02
Audit: 15370
Organization: Eventide (MN)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Organization lacks a robust internal control system for preparing the consolidated schedule of expenditures of federal awards.
  • Impacted Requirements: Compliance with financial reporting standards is compromised, risking inaccuracies in the Schedule.
  • Recommended Follow-Up: Management should establish a clear preparer and reviewer process to enhance internal controls and ensure accurate reporting.

Finding Text

2023-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN #463364672, Period 4 TIN #410721640, Period 4 TIN #450275011, and Period 5 TIN #272608086 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with the preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a Schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, Finding 2022-001. Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization’s consolidated schedule of expenditures of federal awards and implement internal controls that consist of a preparer and reviewer. Views of Responsible Officials: Management agrees with the finding.

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 11563 2023-001
    Significant Deficiency Repeat
  • 11564 2023-002
    Material Weakness Repeat
  • 588005 2023-001
    Significant Deficiency Repeat
  • 588006 2023-002
    Material Weakness Repeat
  • 588007 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $5.76M
93.498 Covid-19 Provider Relief Fund $870,377
14.157 Supportive Housing for the Elderly $136,761