Finding 3143 (2022-001)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2023-12-04

Audit: 5138

Organization: Aids Outreach Center (TX)

Auditor: Logan & Associates PC

AI Summary

Core Issue: There is a mismatch between grant reimbursement requests and the general ledger, indicating poor recordkeeping.
Impacted Requirements: All reimbursement requests must be backed by accurate expenditures in the general ledger.
Recommended Follow-Up: Ensure proper documentation of all allowable costs in the grant general ledger to improve compliance.

Finding Text

Criteria: All requests for reimbursements (RFRs) should be supported by expenditures in the general ledger. Condition: Auditors were unable to reconcile grant RFR totals to the grant general ledger. In total, expenses per the grant RFRs were less than expenses per the grant general ledger. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. At that time, the interim management did not have the background with the grant RFR submitted necessary to reconcile to the grant general ledger. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s controls over the grant RFR process were not sufficiently implemented to avoid the risk of noncompliance related to proper recordkeeping for reporting documentation. Questioned costs: None Recommendation: The Organization should maintain documentation of all allowable costs included on the grant RFRs in the grant general ledger.

Corrective Action Plan

The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. At that time, the interim management did not have the background with the grant RFR submitted necessary to reconcile to the grant general ledger. Effective March 2022, a Director of Finance was brought onboard to develop and strengthen the financial function for AIDS Outreach Center Inc., The presence of the new Director has greatly improved the financial processes, and internal controls. However the Director of Finance, has not had adequate time to fully implement the corrective action plan as the prior audit was completed in September 2022. For YE 2023 AIDS Outreach Center Inc., will have had the time to fully implement controls over the grant RFR process to avoid the risk of noncompliance related to proper recordkeeping for reporting documentation.

Other Findings in this Audit

3144 2022-002

Material Weakness Repeat
3145 2022-003

Material Weakness Repeat
3146 2022-003

Material Weakness Repeat
3147 2022-002

Material Weakness Repeat
3148 2022-001

Significant Deficiency Repeat
579585 2022-001

Significant Deficiency Repeat
579586 2022-002

Material Weakness Repeat
579587 2022-003

Material Weakness Repeat
579588 2022-003

Material Weakness Repeat
579589 2022-002

Material Weakness Repeat
579590 2022-001

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
93.914	Hiv Emergency Relief Project Grants	$1.16M
93.917	Hiv Care Formula Grants	$626,278
12.241	Housing Opportunities for Persons with Aids	$250,590
93.940	Hiv Prevention Activities_health Department Based	$155,576
97.024	Emergency Food and Shelter National Board Program	$76,688
93.153	Coordinated Services and Access to Research for Women, Infants, Children, and Youth	$41,058
21.027	American Rescue Plan Act-Arpa	$10,425
14.267	Rapid Housing Assistance	$10,166