Finding 1225615 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-08-04

AI Summary

  • Answer: The agency's accounting records are not accessible for audit purposes.
  • Trend: There are ongoing issues with incomplete, inaccurate, and untimely accounting transactions.
  • List: Immediate follow-up is needed to ensure timely submission of financial reports and improve record-keeping practices.

Finding Text

The agency’s accounting books and records are not readily available for audit. Certain accounting transactions and adjustments were not booked completely, accurately and timely in accordance with government contract guidelines. The submission of the required financial and audit reports to funding source(s) was significantly delayed.

Corrective Action Plan

The agency acknowledges the findings related to the timeliness of vendor payments, financial reporting, and the availability of accounting records during the audit period. These issues were largely the result of a significant transition period for the organization, including changes in leadership, turnover in key finance and operations roles, and the implementation of new financial software. Managing these changes at the same time created temporary disruptions in our accounting workflows, transaction processing, and reporting timelines. Since then, we have taken the necessary steps to address these challenges and strengthen our accounting and reporting processes. All key finance and operations positions have now been filled, including critical accounting and business management roles, which has improved oversight, accountability, and the timely processing of financial transactions. We have also stabilized our financial systems and strengthened internal processes related to reconciliations, vendor payments, transaction recording, and grant reporting. We believe these corrective actions have addressed the root causes identified in this finding and have significantly improved our ability to meet the accounting, reporting, and audit requirements of our federal, state, and NYC funding sources moving forward. We will continue to monitor our internal controls and reporting timelines to ensure ongoing compliance and stronger operational efficiency.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1225614 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 Early Head Start Program $642,872
84.116Z Community Projects Program $325,553
10.558 Child and Adult Care Food program $89,742
59.059 Congressional Grants $48,786