FAC Explorer

Finding 1238151 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-09-29
Audit: 413082
Organization: Boat People Sos, INC (VA)
Auditor: THE NAIR GROUP LLC

AI Summary

  • Issue: The Organization failed to accurately manage leases in its financial records.
  • Requirements Impacted: Internal controls over the financial close process were not effective, leading to potential misstatements.
  • Recommended Follow-up: Management should redesign and implement stronger controls for lease accounting to ensure accuracy and compliance.

Finding Text

Condition: The Organization was not properly including, excluding, and accounting for leases. Criteria: Internal controls over financial close process, should be in place and operating effectively to ensure that material misstatements are detected and corrected by management in a timely manner. Cause and Effect: Cause: Management did not properly design and implement controls over financial close, and the accounting for leases process. Effect: Leases commitments were not properly accounted for, excluded, and included in the Organizations books and records during the year.

Corrective Action Plan

To prevent similar issues from occurring in the future, management will strengthen its lease identification and review procedures. Specifically, management will require all departments and personnel responsible for entering into, renewing, or modifying lease agreements to provide executed agreements to Accounting on a timely basis. Accounting will maintain a centralized lease schedule and will review new and renewed agreements to determine the appropriate accounting treatment.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1238152 2025-002
    Material Weakness Repeat
  • 1238153 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.496 FAMILY VIOLENCE PREVENTION AND SERVICES/CULTURALLY SPECIFIC DOMESTIC VIOLENCE AND SEXUAL VIOLENCE SERVICES $224,570
94.006 AMERICORPS STATE AND NATIONAL 94.006 $179,755
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $151,708
16.016 CULTURALLY AND LINGUISTICALLY SPECIFIC SERVICES PROGRAM $141,794
84.002 ADULT EDUCATION AND FAMILY LITERACY ACT $135,170
17.502 OCCUPATIONAL SAFETY AND HEALTH SUSAN HARWOOD TRAINING GRANTS $130,744
93.332 COOPERATIVE AGREEMENT TO SUPPORT NAVIGATORS IN FEDERALLY-FACILITATED EXCHANGES $100,000
19.345 INTERNATIONAL PROGRAMS TO SUPPORT DEMOCRACY, HUMAN RIGHTS AND LABOR $99,775
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $90,054
93.493 CONGRESSIONAL DIRECTIVES $82,556
16.575 CRIME VICTIM ASSISTANCE $79,010
11.417 SEA GRANT SUPPORT $78,784
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $55,756
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $51,559
93.865 CHILD HEALTH AND HUMAN DEVELOPMENT EXTRAMURAL RESEARCH $50,332
97.010 CITIZENSHIP EDUCATION AND TRAINING $36,705
93.142 NIEHS HAZARDOUS WASTE WORKER HEALTH AND SAFETY TRAINING $4,000
93.011 NATIONAL ORGANIZATIONS FOR STATE AND LOCAL OFFICIALS $900