FAC Explorer

Finding 1238152 (2025-002)

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

  • Answer: The Organization failed to accurately manage lease accounting, leading to potential financial misstatements.
  • Trend: Weak internal controls over the financial close process contributed to ongoing issues with lease management.
  • List: Recommend reviewing and strengthening controls around lease accounting to ensure accurate financial reporting.

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

Accounting staff will be trained to record monthly lease expenses according to their lease schedules and cash payments. These accounts will be reviewed quarterly, including year end and signed off by a qualified accountant. Management will create a tracking sheet to monitor the renewal, termination, expiration dates, and review of their schedules. It will be reviewed quarterly by COO and finance department. Branch manager is required to update COO for any changes related to lease. A copy of the lease along with all other relevant items will be sent to finance department either by COO or branch manager.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1238151 2025-001
    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