FAC Explorer

Finding 30892 (2022-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-01-03
Audit: 35639
Organization: Caring People Alliance (PA)
Auditor: Marcum LLP

AI Summary

  • Core Issue: Certain asset and liability accounts were not reconciled on time, leading to a material weakness in internal controls over financial reporting.
  • Impacted Requirements: Timely reconciliation of all financial accounts is essential for accurate financial management and reporting.
  • Recommended Follow-Up: Implement a monthly financial close checklist to ensure all general ledger accounts are reconciled promptly, reducing the risk of misstatements.

Finding Text

Finding No. 2022-001 - Account Reconciliations - Material Weakness in Internal Control Over Financial Reporting Condition Certain asset and liability accounts were not reconciled throughout the year and at year end on a timely basis. This matter was reported as finding #2021-001 in the prior year and is repeated again as the issue continued into fiscal year 2022, while the Organization developed and implemented new processes and procedures to correct the issue. Criteria Internal control over financial management requires that all financial accounts be reviewed and reconciled on a timely basis. Cause Turnover in the finance department and mid-year conversion to the new accounting system led to delays in reconciling all accounts in a timely manner throughout and end of the year. Effect Caring People Alliance was unable to timely produce financial statements and account reconciliations necessary for the audit. Questioned Costs None. Identification as a Repeat Finding Yes, this is a repeat finding, see prior year finding #2021-001. Recommendation As part of the Organization?s internal controls over the financial reporting process, we recommend that all general ledger accounts be reconciled timely on a monthly basis. A monthly financial close checklist should be utilized to identify and track all general ledger account reconciliations. This should reduce the occurrence of unreconciled general ledger accounts and activity that may result in a material misstatement of the financial statements. Views of Responsible Officials and Planned Corrective Actions See corrective action plan.

Corrective Action Plan

Finding No. 2022-001 - Account Reconciliations - Material Weakness in Internal Control Over Financial Reporting Management stated that all account reconciliations of Trial Balance for financial monthly close completed in a timely and accurate manner for every month by the 25th of the next month. This issue resolved by Chief Operating Officer and Sr. Director of Finance, who now oversee the monthly and year-end reconciliations. New robust and modern solution, Oracle NetSuite went live on March 1, 2022. Finance Team staff are responsible for maintaining General Ledger Accounts per assignments and job responsibilities. The new Finance Team is responsible to reconcile all Trial Balance Accounts on a monthly basis. Anticipated Completion Date: Completed Person(s) Responsible for Corrective Action: Gerald Macdonald, Ph.D. President and CEO Caring People Alliance 123 South Broad Street, Suite # 2220 Philadelphia, PA 19109 jmacdonald@caringpeoplealliance.org (215) 545-5230 x 1011

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 30893 2022-002
    Material Weakness Repeat
  • 30894 2022-001
    Material Weakness Repeat
  • 30895 2022-002
    Material Weakness Repeat
  • 30896 2022-001
    Material Weakness Repeat
  • 30897 2022-002
    Material Weakness Repeat
  • 30898 2022-001
    Material Weakness Repeat
  • 30899 2022-002
    Material Weakness Repeat
  • 30900 2022-001
    Material Weakness Repeat
  • 30901 2022-002
    Material Weakness Repeat
  • 30902 2022-001
    Material Weakness Repeat
  • 30903 2022-002
    Material Weakness Repeat
  • 30904 2022-001
    Material Weakness Repeat
  • 30905 2022-002
    Material Weakness Repeat
  • 30906 2022-001
    Material Weakness Repeat
  • 30907 2022-002
    Material Weakness Repeat
  • 30908 2022-001
    Material Weakness Repeat
  • 30909 2022-002
    Material Weakness Repeat
  • 30910 2022-001
    Material Weakness Repeat
  • 30911 2022-002
    Material Weakness Repeat
  • 30912 2022-001
    Material Weakness Repeat
  • 30913 2022-002
    Material Weakness Repeat
  • 30914 2022-001
    Material Weakness Repeat
  • 30915 2022-002
    Material Weakness Repeat
  • 30916 2022-001
    Material Weakness Repeat
  • 30917 2022-002
    Material Weakness Repeat
  • 30918 2022-001
    Material Weakness Repeat
  • 30919 2022-002
    Material Weakness Repeat
  • 607334 2022-001
    Material Weakness Repeat
  • 607335 2022-002
    Material Weakness Repeat
  • 607336 2022-001
    Material Weakness Repeat
  • 607337 2022-002
    Material Weakness Repeat
  • 607338 2022-001
    Material Weakness Repeat
  • 607339 2022-002
    Material Weakness Repeat
  • 607340 2022-001
    Material Weakness Repeat
  • 607341 2022-002
    Material Weakness Repeat
  • 607342 2022-001
    Material Weakness Repeat
  • 607343 2022-002
    Material Weakness Repeat
  • 607344 2022-001
    Material Weakness Repeat
  • 607345 2022-002
    Material Weakness Repeat
  • 607346 2022-001
    Material Weakness Repeat
  • 607347 2022-002
    Material Weakness Repeat
  • 607348 2022-001
    Material Weakness Repeat
  • 607349 2022-002
    Material Weakness Repeat
  • 607350 2022-001
    Material Weakness Repeat
  • 607351 2022-002
    Material Weakness Repeat
  • 607352 2022-001
    Material Weakness Repeat
  • 607353 2022-002
    Material Weakness Repeat
  • 607354 2022-001
    Material Weakness Repeat
  • 607355 2022-002
    Material Weakness Repeat
  • 607356 2022-001
    Material Weakness Repeat
  • 607357 2022-002
    Material Weakness Repeat
  • 607358 2022-001
    Material Weakness Repeat
  • 607359 2022-002
    Material Weakness Repeat
  • 607360 2022-001
    Material Weakness Repeat
  • 607361 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $169.69M
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $33.84M
93.558 Temporary Assistance for Needy Families $25.36M
93.667 Social Services Block Grant $8.16M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $276,354
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $263,227
93.600 Head Start $157,500
10.558 Child and Adult Care Food Program $108,315
16.726 Juvenile Mentoring Program $13,000