FAC Explorer

Finding 1173422 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-02-13
Audit: 387122
Organization: Aiken/barnwell Counties Community Action Agency INC (SC)
Auditor: BANKS FINLEY WHITE & CO

AI Summary

  • Core Issue: Significant material adjustments were needed for the financial statements due to insufficient internal controls.
  • Impacted Requirements: Compliance with generally accepted accounting principles and federal regulations was not met, particularly in Fixed Asset and Net Assets reconciliation.
  • Recommended Follow-Up: Enhance training for personnel to improve knowledge and skills in financial reporting and strengthen internal controls.

Finding Text

In order for the financial statements to be presented in accordance with generally accepted accounting principles and Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, significant material adjustments were necessary during the audit of the financial statements at August 31,2023. Internal controls were insufficient to provide adequate recording and/or recognition of several significant account classes, namely, Fixed Asset and Net Assets reconciliation of for which the client was unable to furnish. The aforementioned internal control weaknesses, indicating the Agency's personnel lack the necessary knowledge and skills to allow for reasonable and accurate financial information.

Corrective Action Plan

We acknowledge the findings of Internal Control and Compliance. Management will perform a formal assessment of the accounting department’s staffing levels, roles and workloads to determine where additional accounting personnel are required to support accurate and timely financial reporting. We will develop and implement a training plan to ensure that existing and future accounting staff receive the necessary training to perform their responsibilities effectively and in compliance with applicable accounting standards and internal policies. We will also strengthen the process of preparing interim financial statements to ensure that management receives accurate, timely, and reliable interim financial information for monitoring and decision-making. Management will begin these actions immediately and complete an assessment and training plan by the end of the year.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1173402 2024-001
    Material Weakness Repeat
  • 1173403 2024-002
    Material Weakness Repeat
  • 1173404 2024-001
    Material Weakness Repeat
  • 1173405 2024-002
    Material Weakness Repeat
  • 1173406 2024-001
    Material Weakness Repeat
  • 1173407 2024-002
    Material Weakness Repeat
  • 1173408 2024-001
    Material Weakness Repeat
  • 1173409 2024-002
    Material Weakness Repeat
  • 1173410 2024-001
    Material Weakness Repeat
  • 1173411 2024-002
    Material Weakness Repeat
  • 1173412 2024-001
    Material Weakness Repeat
  • 1173413 2024-002
    Material Weakness Repeat
  • 1173414 2024-001
    Material Weakness Repeat
  • 1173415 2024-002
    Material Weakness Repeat
  • 1173416 2024-001
    Material Weakness Repeat
  • 1173417 2024-002
    Material Weakness Repeat
  • 1173418 2024-001
    Material Weakness Repeat
  • 1173419 2024-002
    Material Weakness Repeat
  • 1173420 2024-001
    Material Weakness Repeat
  • 1173421 2024-002
    Material Weakness Repeat
  • 1173423 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $2.08M
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $1.26M
94.011 AMERICORPS SENIORS FOSTER GRANDPARENT PROGRAM (FGP) 94.011 $375,904
93.569 COMMUNITY SERVICES BLOCK GRANT $17,898