Finding 25945 (2022-002)

Finding 2022-002: Inaccurate schedule of expenditures of federal awards (the ?Schedule?) Agency and Award: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program Assistance Listing Number: 10.561. Condition: The originally prepared Schedule inaccurately presented the federal expenditures for the federal awards for the year ended June 30, 2022. Criteria: Lack of effective controls in place over the financial reporting function increased the risk of misstatements, fraud, or errors occurring and not being detected and corrected in a timely manner. The originally prepared Schedule was understated by $333,297, for the year ended June 30, 2022. Cause: Internal controls over financial reporting were not operating effectively to prevent or detect the misstatement in the Schedule. Context and Effect: The Light house did not have adequate internal controls over financial reporting. Questioned Costs: Questioned costs were not identified. Recommendations: The Light House should review its accounting policies and procedures and its year-end closing procedures to verify that internal controls are in place that will ensure that the Schedule is accurately prepared including allowed indirect costs.