Finding 12716 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 17548
Organization: The Inner Voice, Inc. (IL)

AI Summary

  • Core Issue: There is a material weakness in internal controls over financial reporting due to insufficient staffing knowledge.
  • Impacted Requirements: The lack of proper internal controls risks inaccuracies in year-end financial statements and disclosures.
  • Recommended Follow-Up: Hire a qualified finance professional to enhance the financial statement preparation process and ensure management oversight.

Finding Text

Type of Finding: ? Material Weakness in Internal Control over Financial Reporting Condition: During the course of our audit, CliftonLarsonAllen LLP prepared the financial statements. Criteria or specific requirement: A well-designed system of internal control should include policies and procedures to provide management with reasonable assurance year-end reporting of financial information and related disclosures is accurate and in according with accounting principles generally accepted in the United States of America. Effect: The lack of staffing with sufficient knowledge indicates the possibility of the omission of necessary footnote disclosures consistent with generally accepted accounting principles. Cause: CliftonLarsonAllen LLP prepared the financial statements. Repeat Finding: This is not a repeat finding. Recommendation: The financial statement preparation process should be part of the internal control system, although the Inner Voice may be financially limited in the hiring of personnel with an up-to-date understanding of accounting preannouncements, proper mitigating factors should be reflected including oversight by management. Views of responsible officials and planned corrective actions: We are in the process of discussing with the Board for hiring of a finance person to prepare the reports so that CFO can review and approve his/her work.

Corrective Action Plan

MATERIAL WEAKNESS 2022-001 Financial Reporting Recommendation: The financial statement preparation process should be part of the internal control system, although the Inner Voice may be financially limited in the hiring of personnel with an up-to-date understanding of accounting preannouncements, proper mitigating factors should be reflected including oversight by management. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We are in the process of discussing with the Board for hiring of a finance person to prepare the reports so that CFO can review and approve his/her work. Name of the contact person responsible for corrective action: CFO Planned completion date for corrective action plan: September 1, 2023.

Categories

Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 12717 2022-002
    Significant Deficiency
  • 12718 2022-004
    Significant Deficiency
  • 12719 2022-005
    Significant Deficiency
  • 12720 2022-006
    Significant Deficiency
  • 12721 2022-003
    Significant Deficiency
  • 589158 2022-001
    Material Weakness
  • 589159 2022-002
    Significant Deficiency
  • 589160 2022-004
    Significant Deficiency
  • 589161 2022-005
    Significant Deficiency
  • 589162 2022-006
    Significant Deficiency
  • 589163 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.805 Homeless Veterans Reintegration Project $498,884
64.024 Va Homeless Providers Grant and Per Diem Program $116,879
21.027 Coronavirus State and Local Fiscal Recovery Funds $55,000
14.218 Community Development Block Grants/entitlement Grants $33,496
14.267 Continuum of Care Program $24,465
97.024 Emergency Food and Shelter National Board Program $10,000
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $7,500
14.231 Emergency Solutions Grant Program $2,700