Finding 1214634 (2025-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-05-13

Audit: 401326

Organization: The Maryland Coalition Against Sexual Assault, Inc. (MD)

Auditor: PKS & COMPANY

AI Summary

Core Issue: There are material weaknesses in cash management and internal controls over compliance for federal programs.
Impacted Requirements: The Organization must adhere to ASC 606 for revenue recognition, which was not followed due to lack of year-end reconciliations.
Recommended Follow-Up: Management should establish control procedures for accurate revenue capture and cash management, and they plan to start reconciling receivables and revenue at year-end.

Finding Text

Information on the Federal Program - Assistance Listing Number 93.497 - Family Violence Prevention Services Act American Rescue Plan Sexual Assault Funding, U.S. Department of Health and Human Services. Compliance Requirement: Cash Management. Type of Finding: Material weakness. Assistance Listing Number 16.524 - Legal Assistance for Victims- Direct Program, U.S. Department of Justice. Compliance Requirement: Cash Management. Type of Finding: Material weakness in Internal Control over Compliance and Noncompliance. Criteria: The Organization must follow ASC 606, revenue recognition. Condition: For the year ended September 30, 2025, receivable amounts reported across multiple grants needed to be adjusted.Cause: The Organization does not reconcile receivables at year-end. Effect: As a result, the Organization risks overstating or understanding receivable and revenue as a result of improper revenue recognition. Recommendation: Management should implement control procedures to ensure revenue is being captured in the proper period and cash receipts are properly managed. Views of responsible officials and planned corrective actions: Management agrees with the finding. Management plans to start reconciling receivables and revenue at year-end.

Corrective Action Plan

The Organization does not have controls in place related to revenue recognition. Finding summary: The general ledger balance for grants receivable did not reconcile at year end. Planned corrective action: Controls will be put into place to strengthen the Organizations revenue recognition process. Accounts receivable will be reconciled each month to ensure proper presentation of grant receivable in the financial statements presented to the board each month. Invoices will be dated based upon when the expenses were incurred rather than the date the invoice was submitted to the granting agency. This will generate a more accurate accounts receivable aging report that will show the amount of grant receivable at any point in time. Projected completion date: 5/31/26 Name of contact persons: Nyla Hendrick, Finance & Operations Director

Other Findings in this Audit

1214632 2025-001

Material Weakness Repeat
1214633 2025-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
93.497	FAMILY VIOLENCE PREVENTION AND SERVICES/ SEXUAL ASSAULT/RAPE CRISIS SERVICES AND SUPPORTS	$1.15M
16.556	STATE DOMESTIC VIOLENCE AND SEXUAL ASSAULT COALITIONS	$252,846
16.833	NATIONAL SEXUAL ASSAULT KIT INITIATIVE	$234,851
16.588	VIOLENCE AGAINST WOMEN FORMULA GRANTS	$208,993
16.524	LEGAL ASSISTANCE FOR VICTIMS	$133,331
93.991	PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT	$50,730
93.136	INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS	$38,488
16.017	SEXUAL ASSAULT SERVICES FORMULA PROGRAM	$12,065