Finding 1169035 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-01-14
Audit: 381718
Organization: Hanan Refugees Relief Group (WI)
Auditor: LUCIDA LLC

AI Summary

  • Core Issue: Material audit adjustments were necessary to avoid significant misstatements in financial statements.
  • Impacted Requirements: Management must implement effective internal controls to ensure reliable financial reporting.
  • Recommended Follow-Up: Management should ensure all transactions are recorded accurately and continue utilizing auditors for support.

Finding Text

2024-001 MATERIAL AUDIT ADJUSTMENTS WERE REQUIRED TO BE RECORDED Condition: Material adjusting journal entries proposed by the auditor were required to be recorded to prevent the financial statements from being materially misstated. Criteria: It is the responsibility of management to implement proper internal controls to provide reasonable assurance about the achievement of the entity’s objectives with regard to the reliability of financial reporting. Cause: Inadequate controls to ensure proper financial reporting in accordance with accounting principles generally accepted in the United States of America. Effect: Without the audit adjustments, the financial statements could have been materially misstated. Recommendation: We recommend management ensures that all transactions are recorded properly. Management Response: The Organization will continue to use our auditors for these additional services.

Corrective Action Plan

Recommendation: We recommend management ensures that all transactions are recorded properly. Management Response: The Organization will continue to use our auditors for these additional services.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1169036 2024-002
    Material Weakness Repeat
  • 1169037 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
19.510 U.S. REFUGEE ADMISSIONS PROGRAM $1.06M
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $389,473