Finding 1206599 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-04-14
Audit: 398676
Auditor: LOUIS PLUNG

AI Summary

  • Core Issue: The Urban League struggled with timely and accurate accounting due to high turnover in the accounting department.
  • Impacted Requirements: Lack of internal oversight led to incomplete records and delays in financial reporting.
  • Recommended Follow-Up: Management should enhance procedures and invest in training for accounting staff to improve accuracy and timeliness.

Finding Text

Finding 2024-001: Administrative Capabilities Criteria and Condition: The Urban League should design its process and procedures to ensure timely and accurate accounting and reporting. During the year ended June 30, 2024, the Urban League lacked the administrative capabilities to properly and timely record all transactions, and lacked the internal oversight to ensure their reporting was timely and accurate. The main cause of this lack of administrative capabilities is due to turnover within the accounting department. This resulted in significant issues with their records and also with delays in being able to provide details for audit support and timely financial statements. Cause: During the year ended June 30, 2024 the Urban League went through substantial changes within their accounting department including but not limited to a complete change in oversight and leadership. During this time their was inadequate processes in place to properly record all transactions in a timely manner and an inability to provide accurate and timely reporting. Questioned Costs: None Recommendations: We recommend that management implement new procedures and improve upon accounting leadership and training to ensure that in the future accounting records are complete, accurate and timely.

Corrective Action Plan

To address the identified deficiencies in administrative capabilities, the Urban League of Great Pittsburgh has implemented a comprehensive overhaul of its financial oversight and leadership structure. The organization now operates under entirely new oversight and leadership, having appointed a new Vice President of Finance to guide the department and enforce adherence to internal control procedures. In addition to strengthening its internal leadership, the Urban League of Greater Pittsburgh has engaged a third-party service provider to support its accounting operations. The organization has also consulted with a former Urban League of Greater Pittsburgh Officer, leveraging their experience to enhance reporting practices. Furthermore, to improve continuity and expertise within the accounting department, a former employee with specialized accounting knowledge has been rehired as an Accounting Specialist. Together, these measures, including revitalized accounting leadership, targeted training initiatives, and access to additional resources are designed to establish a robust set of processes and procedures. These efforts aim to ensure that all financial reporting and transaction entries are completed in a timely and accurate manner, thereby addressing the issues noted in the findings.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1206600 2024-002
    Material Weakness Repeat
  • 1206601 2024-003
    Material Weakness Repeat
  • 1206602 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
17.235 SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM $998,507
21.023 EMERGENCY RENTAL ASSISTANCE PROGRAM $321,216
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $69,237
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $42,316
99.U19 Housing Stability Counseling Program $30,801
93.350 NATIONAL CENTER FOR ADVANCING TRANSLATIONAL SCIENCES $23,293