Finding 12717 (2022-002)

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

AI Summary

  • Core Issue: There were significant misstatements in financial records that required management adjustments, impacting various accounts and increasing net assets by $5,371.
  • Impacted Requirements: Internal controls must ensure accurate year-end financial reporting in line with generally accepted accounting principles.
  • Recommended Follow-Up: Management should review and enhance policies for year-end transactions to ensure timely and accurate adjustments are made.

Finding Text

Type of Finding: ? Significant Deficiency in Internal Control over Financial Reporting Condition: During the course of our audit, misstatements in the accounting records was detected as a result of audit procedures performed. Adjustments were posted by management to correct the misstatements. The corrected misstatements impacted expense, accrued vacation, revenue, accounts receivable and increased the change in net assets by $5,371. 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: Inaccurate financial reporting could adversely affect the decision making process for the management of the Inner Voice. Cause: Accounting principles generally accepted in the United States of America were not followed over the accounting of a grant that was unconditional and vacation earned according to the Inner Voice?s vacation policy. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management review policies and procedures over year-end transactions to ensure that all necessary adjustments are being posted on a timely basis, in the appropriate period, and in accordance with generally accepted accounting principles. 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

SIGNIFICANT DEFICIENCY 2022-002 Audit misstatements Recommendation: We recommend that management review policies and procedures over year-end transactions to ensure that all necessary adjustments are being posted on a timely basis, in the appropriate period, and in accordance with generally accepted accounting principles. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/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

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 12716 2022-001
    Material Weakness
  • 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