Finding 20479 (2022-002)

Material Weakness
Requirement
ABLN
Questioned Costs
-
Year
2022
Accepted
2023-08-10
Audit: 27495
Auditor: Bbd LLP

AI Summary

  • Core Issue: The organization has a material weakness in internal control over financial reporting, leading to significant misstatements in accounting records.
  • Impacted Requirements: Compliance with generally accepted accounting principles (GAAP) is not being met, as highlighted by SAS 115 regarding internal control communication.
  • Recommended Follow-Up: Implement stronger management oversight and establish procedures to ensure timely and accurate financial reporting.

Finding Text

Finding 2022-02 Internal Control Over Financial Reporting Material Weakness in Internal Control Condition Our audit procedures identified material misstatements such that we concluded THE ORGANIZATION was unable to present its accounting records in accordance with generally accepted accounting principles. As a result, we proposed and management recorded journal entries to correct the misstatements that had a material effect on the Organization?s accounting records. Criteria Statement on auditing Standards No. 115 "Communicating Internal Control Related Matters Identified in an Audit" ("SAS 115") focuses on how the auditor communicates matters related to internal controls to the client. One area SAS 115 emphasizes is internal control over financial reporting. Cause Lack of management oversight. Effect Errors and/or fraud can occur and not be detected and corrected on a timely basis. Auditor Recommendation We recommend that procedures and controls are implemented in order to prepare timely and accurate financial information in accordance with generally accepted accounting principles.

Corrective Action Plan

Views of Responsible Officials Management will implement procedures to ensure that timely and accurate financial information is prepared in accordance with generally accepted accounting principles.

Categories

Internal Control / Segregation of Duties HUD Housing Programs Material Weakness Reporting

Other Findings in this Audit

  • 20478 2022-001
    Material Weakness
  • 596920 2022-001
    Material Weakness
  • 596921 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.600 Head Start $812,700
93.575 Child Care and Development Block Grant $390,403