Finding 1219648 (2024-001)

Material Weakness Repeat Finding
Requirement
J
Questioned Costs
-
Year
2024
Accepted
2026-06-27
Audit: 405191
Organization: Coastal Community Action, INC (NC)

AI Summary

  • Answer: There is a significant issue in our financial reporting processes that could lead to incorrect financial statements.
  • Trend: This weakness has been identified in previous audits, indicating a recurring problem that needs urgent attention.
  • List: Immediate actions include reviewing reporting procedures, enhancing staff training, and implementing stronger internal controls.

Finding Text

Material Weakness in Financial Reporting

Corrective Action Plan

To remediate this weakness and strengthen financial reporting, management will implement the following: 1. Monthly Close & Reconciliation Calendar – Establish a documented month-end close checklist with due dates and owners for all key reconciliations (cash, A/R, A/P, payroll liabilities, grants/grant receivables, fixed assets, debt, accrued expenses). 2. Trial Balance–to–GL Tie-Out – Implement a standardized tie-out package requiring each balancesheet account to be supported by a reconciliation that agrees to the detailed GL and the trial balance; variances >$0 must be researched and resolved before closing. 3. Document Standards – Adopt minimum documentation requirements (e.g., bank statements, reconciliations, inventory roll-forwards, grant schedules, amortization/support for accruals) and a centralized digital filing structure to ensure audit-ready support. 4. Adjusting Entry Controls – Require preparer/reviewer sign-off for all journal entries, with written support attached (calculation, source documents) and a monthly summary review by the CFO. 5. Grants & Receivables Subledger – Implement (or remediate) a grants/AR subledger that agrees monthly to the GL, including aging, award mapping, and reconciliation to external funder reports. 6. Training & Accountability – Provide training to finance staff on the close checklist, reconciliation standards, and documentation requirements; performance goals will include timely, accurate completion of assigned reconciliations. 7. Oversight & Governance – Provide the Audit/Finance Committee with a monthly close status report (checklist completion, unreconciled items, and corrective items) until the weakness is fully remediated. 8. Transitional Support – Engage temporary external accounting support, as needed, to clear priorperiod backlogs and to assist with initial implementation of the close process.

Categories

Material Weakness Reporting

Other Findings in this Audit

  • 1219649 2024-002
    Material Weakness Repeat
  • 1219650 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $832,891
10.558 CHILD AND ADULT CARE FOOD PROGRAM $471,447
93.569 COMMUNITY SERVICES BLOCK GRANT $377,432
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $256,443
93.600 HEAD START $252,583
94.011 AMERICORPS SENIORS FOSTER GRANDPARENT PROGRAM (FGP) 94.011 $181,813
94.016 AMERICORPS SENIORS RETIRED AND SENIOR VOLUNTEER PROGRAM (RSVP) 94.002 $159,764
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $145,654
14.225 HOME INVESTMENT PARTNERSHIPS PROGRAM $65,580
94.002 SENIOR COMPANION PROGRAM $54,641
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $35,518