Finding 1160607 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-10-16
Audit: 370898
Auditor: Cleveland Group

AI Summary

  • Core Issue: The Organization's internal controls failed to reconcile general ledger accounts and prepare financial statements on time.
  • Impacted Requirements: This situation led to inaccurate financial reporting and required adjustments to comply with Generally Accepted Accounting Principles.
  • Recommended Follow-Up: Management should ensure internal control processes are clearly defined and consistently followed to improve accuracy in financial reporting.

Finding Text

Condition During 2024, the Organization’s internal control system was not able to timely and completely reconcile various general ledger account balances or prepare the financial statements. Additionally, audited adjustments were necessary in order to prepare the financial statements in conformity with Generally Accepted Accounting Principles. Criteria The Organization should maintain a level of internal control over financial reporting in order to accurately record, process and summarize data for accurate financial reporting. Effect Inaccurate financial reporting. Recommendation We recommend that the Organization’s management continue to work to ensure that the internal control processes are clearly identified and followed consistently and timely. Management’s Response The Organization has reorganized its management team and finance and accounting functions. In addition, it has hired an experienced accounting firm to assist in account reconciliations, account recording and bookkeeping services. The Organization fully expects to put processes in place for timely and accurate financial reporting. Status Corrective action has been taken.

Corrective Action Plan

We have employed a third-party accounting firm to review and reconcile the accounting records and post necessary bookkeeping entries. Additionally, we have re-organized management and responsibility to ensure timely and effective record keeping.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1160608 2024-002
    Material Weakness Repeat
  • 1160609 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
64.055 Staff Sergeant Parker Gordon Fox Suicide Prevention Grant Program $846,834
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $1,245