Finding 369512 (2023-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-02-16
Audit: 290783
Organization: Rapid City Club for Boys, Inc. (SD)

AI Summary

  • Core Issue: There is a risk of material misstatement in financial statements due to management's lack of awareness of Uniform Guidance requirements.
  • Impacted Requirements: The same deficiency was noted in the previous year, indicating ongoing compliance issues.
  • Recommended Follow-Up: Management should thoroughly review the auditor-prepared financials and SEFA, seek clarification on any questions, and ensure proper classification and disclosure practices are followed.

Finding Text

2023-001 FINDING: Financial Statement Preparation and Schedule of Expenditures of Federal Awards Criteria and Effect: It is our responsibility to inform you that this deficiency could result in a material misstatement to the financial statements that could have been prevented or detected by the Organization’s management. In addition, management was unaware that Uniform Guidance requirements were necessary. Repeat Finding From Prior Year: Yes, prior year finding 2022-001 Recommendation: As in prior years, we have instructed management to review a draft of the auditor prepared financials and SEFA in detail for their accuracy, we have answered any questions they might have, and we have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification and disclosure in your statements. We are satisfied the appropriate steps have been taken to provide the Organization with the completed financial statements and SEFA. It is the responsibility of management and the Board of Directors to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Response/Corrective Action Plan: The Organization agrees with the above Finding. See Corrective Action Plan.

Corrective Action Plan

Finding No 2023-001: Financial Statement and SEFA Preparation Responsible Individuals: Roni Williamson, Controller Corrective Action Plan: The Organization has accepted the risk associated with the finding regarding the preparation of the combined financial statements and will continue to have the independent auditor prepare the annual consolidated financial statements. Anticipated Completion Date: Ongoing

Categories

Reporting

Other Findings in this Audit

  • 369513 2023-003
    Material Weakness
  • 369514 2023-004
    Significant Deficiency Repeat
  • 945954 2023-001
    Material Weakness Repeat
  • 945955 2023-003
    Material Weakness
  • 945956 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $1.25M
14.275 Housing Trust Fund $300,000
10.558 Child and Adult Care Food Program $97,817
10.559 Summer Food Service Program for Children $56,793
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $49,388
21.019 Coronavirus Relief Fund $7,500