Finding 1720 (2022-001)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-11-13

AI Summary

  • Answer: Internal controls were missing for the first seven months of the year.
  • Trend: This issue arose because the Organization was new and had not set up necessary control procedures.
  • List: No recommendations needed as procedures were established during the audit period.

Finding Text

Condition For the first seven months of the year, there was a lack of internal controls. Criteria Generally accepted auditing standards require the implementation of internal controls. Cause The Organization's services were just beginning, and control procedures had not been established. Effect There was not a segregation of duties. Recommendation We do not have any recommendations. Procedures were implemented during the year under audit.

Corrective Action Plan

Corrective Action Taken or To Be Taken: We have instituted several controls to prevent errors or irregularities regarding our financial statements and use of Federal funds moving forward. Listed are some of our most pervasive measures in our internal control system. - We review invoices and require two approvals before we pay on an invoice. - We require reviews of our billings before they are submitted. - We have a financial report that is reviewed at each board meeting. - We perform a monthly bank reconciliation to ensure cash is recorded properly. These among other controls having been implemented in 2022, should go a long way in preventing material misstatements in our financial reporting and should ensure that we properly comply with rules and regulations relating to the use of Federal funds. Timetable for Implementation: Controls were implemented in 2022 and early 2023. Monitoring to Be Performed: Third Party Accountant, Project Manager, and Treasurer will monitor the procedures. -

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1721 2022-001
    Material Weakness
  • 1722 2022-001
    Material Weakness
  • 1723 2022-001
    Material Weakness
  • 1724 2022-001
    Material Weakness
  • 1725 2022-001
    Material Weakness
  • 578162 2022-001
    Material Weakness
  • 578163 2022-001
    Material Weakness
  • 578164 2022-001
    Material Weakness
  • 578165 2022-001
    Material Weakness
  • 578166 2022-001
    Material Weakness
  • 578167 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $442,833
11.031 Broadband Infrastructure Program $36,914