FAC Explorer

Finding 1173228 (2024-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-02-11
Audit: 386706
Organization: Anewentry, Inc. (TX)
Auditor: MONTEMAYOR BRITTON BENDER CAREY PC

AI Summary

  • Core Issue: 10 out of 72 expense items lacked sufficient supporting documentation.
  • Impacted Requirements: 14% of sampled expenses, accounting for 6% of total dollars, were not properly documented.
  • Recommended Follow-Up: Management should ensure all expenses have appropriate supporting documentation to prevent unallowable costs.

Finding Text

Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Condition: 10 of 72 sampled expense items did not have sufficient supporting documentation. Perspective Information: Supporting documentation for 14% of sampled expense items representing 6% of the sampled dollar amount was not available. Cause and effect: Invoices and receipts were not maintained for expenses. This could result in unallowable and personal expenses to be paid by the organization. Recommendation: Management should retain supporting documentation for all expenses paid by the organization.

Corrective Action Plan

Views of Responsible Officials: We agree with the auditor’s comments, and the following actions have been implemented. Corrective Action Plan: Updated processes and internal controls have been implemented to ensure complete, accurate, and timely collection and retention of supporting documentation going forward. The Board of A New Entry, Inc., has reviewed the updated controls and believes they are operating effectively. Implementation date: 01 January 2026 Responsible Official: Drew Denett and A New Entry, Inc. Management and Board Members

Categories

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1173225 2024-001
    Material Weakness Repeat
  • 1173226 2024-002
    Material Weakness Repeat
  • 1173227 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $144,154