Finding 29102 (2022-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-06-29
Audit: 24566
Organization: Eventide (MN)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Organization lacks a proper internal control system for preparing the consolidated schedule of expenditures of federal awards.
  • Impacted Requirements: Accurate financial reporting and compliance with federal assistance criteria are not being met.
  • Recommended Follow-Up: Management should enhance awareness of financial reporting requirements and strengthen internal controls related to the Schedule.

Finding Text

2022-001 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required with the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization?s consolidated schedule of expenditures of federal awards and internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2022-001 Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loan and Grants Cluster CFDA #10.766 Finding Summary: Eide Bailly LLP assisted in the preparation of our draft consolidated schedule of expenditures of federal awards and accompanying notes to the consolidated schedule of expenditures of federal awards. Responsible Individuals: Darin Ohe, CFO Corrective Action Plan: Eventide will work with auditors going forward to understand the requirements for the consolidated schedule of expenditures of federal awards. Anticipated Completion Date: 6/30/23

Categories

Reporting Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 29100 2022-002
    Material Weakness Repeat
  • 29101 2022-003
    Material Weakness
  • 605542 2022-002
    Material Weakness Repeat
  • 605543 2022-003
    Material Weakness
  • 605544 2022-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $5.96M
93.498 Provider Relief Fund $2.62M
14.157 Supportive Housing for the Elderly $149,042