Finding 33941 (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.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 33940 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