Finding 1159585 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-10-01
Audit: 370235
Organization: Westward Heights (WY)

AI Summary

  • Core Issue: Westward Heights submitted reports late to the USDA due to inadequate internal controls.
  • Impacted Requirements: Reports must be complete, accurate, and submitted on time as per 2 CFR 200.327.
  • Recommended Follow-Up: Establish clear deadlines for accounting staff to ensure timely completion of financial reports.

Finding Text

Assistance Listing 10.766 Title Community Facilities Loans and Grants Federal Grantor U.S. Department of Agriculture Compliance Area Reporting Type of Finding Internal Control – Significant Deficiency Questioned Costs None Reported Repeat Finding Yes Criteria 2 CFR 200.327 establishes that reports be complete, accurate, and supported by accounting records (if applicable) and be submitted in compliance with the appropriate deadlines. Condition Westward Heights submitted multiple reports to the USDA after the required due dates. Cause Westward Heights did not have an internal control policy in place to ensure timely closing of month-end or year-end financials. Effect The lack of policy resulted in multiple reports being submitted to the USDA after the due date. Recommendation We recommend that Westward Heights establish deadlines for accounting personnel to complete month-end and year-end financials. Views of Responsible Officials Management and Westward Heights’ Board of Directors agree with the finding. See Westward Heights’ Corrective Action Plan for Finding 2024-002.

Corrective Action Plan

Effective immediately, the Chief Financial Analyst has established a new schedule for monthly financial statements at Westward Heights Care Center. Monthly financial statements will be completed and provided to the Administrator by approximately the 20th of each month. This schedule ensures adequate time to prepare quarterly reports for submission to the USDA. Once the quarterly financials are finalized, the USDA report will be submitted no later than the last day of the month. This plan will also be added to the calendar with reminders set for the Administor to ensure timely review and submission.

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $4.05M