Finding 1174624 (2024-008)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2026-02-19

Audit: 388128

Organization: Four Square Community Action, Inc. (NC)

Auditor: SMART SOLUTIONS CPA INC

AI Summary

Core Issue: The Organization does not have a formal process to identify and review potential fraud risks.
Impacted Requirements: Lack of documentation for evaluating and responding to fraud risks affects monitoring and detection.
Recommended Follow-Up: Establish a documented control process for ongoing fraud risk evaluation and monitoring.

Finding Text

The Organization currently lacks a formal control process for identifying and reviewing potential fraud risks. While fraud risks may be reported by Those Charged With Governance (TCWG), there is no documented process for evaluating, responding to, and monitoring these risks over time. The absence of such a review and monitoring mechanism hinders the Organization's ability to promptly detect and mitigate fraud-related threats.

Corrective Action Plan

Management recognizes the need for a formal fraud risk process and plans to implement one to strengthen governance and mitigate risks.

Other Findings in this Audit

1174617 2024-001

Material Weakness Repeat
1174618 2024-002

Material Weakness Repeat
1174619 2024-003

Material Weakness Repeat
1174620 2024-004

Material Weakness Repeat
1174621 2024-005

Material Weakness Repeat
1174622 2024-006

Material Weakness Repeat
1174623 2024-007

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.871	SECTION 8 HOUSING CHOICE VOUCHERS	$1.98M
93.600	HEAD START	$1.46M
93.568	LOW-INCOME HOME ENERGY ASSISTANCE	$436,250
10.558	CHILD AND ADULT CARE FOOD PROGRAM	$165,767
81.042	WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS	$151,620
93.569	COMMUNITY SERVICES BLOCK GRANT	$136,816
14.239	HOME INVESTMENT PARTNERSHIPS PROGRAM	$44,165