Finding 33940 (2022-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-08
Audit: 36709
Organization: House of Hope Green Bay, Inc. (WI)

AI Summary

  • Core Issue: Grant activity is not being accurately reported in the accounting system, leading to an understatement of financial activity.
  • Impacted Requirements: Internal controls are inadequate, failing to ensure proper tracking and reporting of grant activity.
  • Recommended Follow-Up: Develop a system to track grant activity correctly in the accounting system, such as creating a class in QuickBooks for each grant.

Finding Text

2022-001 Grant Tracking Federal Program: Agency-wide Criteria: Adequate internal controls necessitate personnel to have knowledge and training to properly track and report grant activity. Condition: Grant activity is being net in general ledger accounts therefore understating the activity. A significant reclassification was needed to record revenue and expenses gross. Questioned Costs: Not applicable. Context: Grant activity is being accurately tracked outside of the accounting system, but the information being entered into the accounting system is not being done correctly. Effect: This weakness could result in undetected errors and irregularities and misstated financial reports, including information reported on the SEFA. Cause: Internal controls did not identify that adjustments should be recorded. Prior Year Finding: This was a prior year audit finding numbered 2021-002. Recommendation: We recommend the Organization develop a system to properly track grant activity in the accounting system. One way to do this would be creating a class in QuickBooks for each grant. This would allow management to review the spending of grant funds without the activity being net. Management?s Response: We will work with our outside accountant to develop a system to properly track grant funds and ensure the activity is being accurately reported in the accounting system.

Corrective Action Plan

2022-001 Grant Tracking Contact: Shannon Wienandt Completion date: June 30, 2023 Management?s Response: We have worked with our outside accountant to develop a system to properly track grant funds and ensure the activity is being accurately reported in the accounting system. This issue was corrected for a period of time. This was identified in the prior year audit and corrected at that time, but we were already into the next fiscal year. Full correction should be completed in FY23.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 33941 2022-001
    Significant Deficiency Repeat
  • 33942 2022-001
    Significant Deficiency Repeat
  • 33943 2022-001
    Significant Deficiency Repeat
  • 610382 2022-001
    Significant Deficiency Repeat
  • 610383 2022-001
    Significant Deficiency Repeat
  • 610384 2022-001
    Significant Deficiency Repeat
  • 610385 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $281,485
93.623 Basic Center Grant $83,446
21.027 Coronavirus State and Local Fiscal Recovery Funds $57,857
93.558 Temporary Assistance for Needy Families $50,000
14.231 Emergency Solutions Grant Program $40,922
97.024 Emergency Food and Shelter National Board Program $24,153
93.658 Foster Care_title IV-E $13,587
14.267 Continuum of Care Program $12,500
93.645 Stephanie Tubbs Jones Child Welfare Services Program $591