Finding 1172105 (2023-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2026-02-03

AI Summary

  • Issue: The organization lacks the necessary expertise in financial accounting and reporting.
  • Impact: This gap means there are no controls to prevent or detect errors in financial statements and footnotes.
  • Recommendation: Engage a qualified external party to assist with financial statement preparation and review.

Finding Text

Lack of Client Expertise in Financial Accounting and Reporting. The organization does not have the ability, either internally or through the use of a qualified outside party, to independently prepare and review the financial statements and the related footnote disclosures. As such, there are no controls to prevent and detect misstatements in this area.

Corrective Action Plan

We do not have the ability, internally or through the use of a qualified outside party, to independently prepare or review financial statements and related footnote disclosures. We also do not have the financial means to hire a qualified accounting staff to prepare or review financial statements, etc. We have outsourced certain routine accounting matters to an outside 3rd party bookkeeping firm which provides payroll reporting and payroll tax services, and some oversight of other various accounting matters as needed. The accounting staff that we do have (one person) is working to minimize the increased work at year-end by improving and enhancing internal accounting controls, systems and functions with greater efficiency and improved consistency. We continue to believe that this is helping.

Categories

Reporting

Other Findings in this Audit

  • 1172104 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $1.06M
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $236,970