Finding 367378 (2023-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-02-14
Audit: 290359
Organization: The Inner Voice, Inc. (IL)

AI Summary

  • Core Issue: There is a material weakness in internal control over financial reporting due to misstatements that were corrected but affected net assets and revenue by $49,377.
  • Impacted Requirements: The current internal control system does not provide reasonable assurance that financial reporting is accurate and compliant with GAAP.
  • Recommended Follow-Up: Management should enhance year-end transaction procedures to ensure timely and accurate adjustments, and a new Director of Finance will help strengthen controls.

Finding Text

Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: During the course of our audit, misstatements in the accounting record were detected as a result of audit procedures performed. An adjustment was posted by management to correct the misstatement. The corrected misstatements impacted beginning net assets without donor restrictions, revenue, accounts receivable and decreased the change in net assets by $49,377. Criteria or specific requirement: A well-designed system of internal control should include policies and procedures to provide management with reasonable assurance year-end reporting of financial information and related disclosures is accurate and in according with accounting principles generally accepted in the United States of America. Effect: Inaccurate financial reporting could adversely affect the decision-making process for the management of the Inner Voice. Cause: Accounting principles generally accepted in the United States of America were not followed over the accounting of a grants received that were unconditional. Repeat Finding: See prior finding 2022-002. Recommendation: We recommend that management review policies and procedures over year-end transactions to ensure that all necessary adjustments are being posted on a timely basis, in the appropriate period, and in accordance with generally accepted accounting principles. Views of responsible officials and planned corrective actions: Management agrees with the finding. Management will be reviewing policies and procedures in the month of May every year. Additionally, the Director of Finance has been hired and joined Inner Voice effective October 16, 2023. The additional member of the finance department will allow for stronger internal controls and segregation of duties.

Corrective Action Plan

Management will be reviewing policies and procedures in the month of May every year. Additionally, the Director of Finance has been hired and joined Inner Voice effective October 16, 2023. The additional member of the finance department will allow for stronger internal controls and segregation of duties.

Categories

Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 367377 2023-001
    Material Weakness Repeat
  • 367379 2023-003
    Significant Deficiency Repeat
  • 367380 2023-004
    Significant Deficiency
  • 943819 2023-001
    Material Weakness Repeat
  • 943820 2023-002
    Material Weakness Repeat
  • 943821 2023-003
    Significant Deficiency Repeat
  • 943822 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
64.024 Va Homeless Providers Grant and Per Diem Program $185,820
21.027 Rapid Re-Housing Program for Gender-Based Violence - Coronavirus State Fiscal Recovery Funds (arpa) $150,898
21.027 Rapid Re-Housing Program - Coronavirus State Fiscal Recovery Funds (arpa) $132,134
21.027 Arpa Add Ons - Coronavirus State and Local Fiscal Recovery Funds $110,000
14.218 Community Development Block Grant $85,580
14.231 Emergency Solutions Grant Program $68,991
97.024 Fema $40,600
14.267 Continuum of Care Program $18,907
21.027 E & Th - Coronavirus State and Local Fiscal Recovery Funds (arpa) $16,577
14.218 Community Development Block Grant Cares Act 2020 $6,959
21.027 Honor Grant - Arpa Covid-19 $6,171