Finding 381207 (2023-001)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-03-19
Audit: 295925
Organization: Volunteers of America, Utah (UT)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Audit adjustments were needed for accounts receivable, revenue, and construction-related amounts due to inadequate internal controls.
  • Impacted Requirements: The lack of cutoff controls led to errors in financial statement preparation that went undetected.
  • Recommended Follow-up: Management is revising processes for a thorough review of account balances before audits, with completion expected by 04/30/2024.

Finding Text

Finding Summary: In connection with the audit procedures performed, audit adjustments were required to properly reflect: 1) accounts receivable and revenue, and 2) construction in progress and the amounts payable related to the construction at year‐end. The Organization’s system of internal controls did not include controls to apply cutoff in the affected areas and properly reflect certain transactions in the financial statements. The Organization’s system of internal control over the preparation of the financial statements did not detect errors. Responsible Individuals: Christa Beauchat, Chief Financial Officer Corrective Action Plan: Management is revising its processes to address the areas with audit adjustments to ensure they are not repeated in the future, including a more detailed and thorough review (by management) of account balances prior to the audit. Anticipated Completion Date: 04/30/2024

Corrective Action Plan

Finding Summary: In connection with the audit procedures performed, audit adjustments were required to properly reflect: 1) accounts receivable and revenue, and 2) construction in progress and the amounts payable related to the construction at year‐end. The Organization’s system of internal controls did not include controls to apply cutoff in the affected areas and properly reflect certain transactions in the financial statements. The Organization’s system of internal control over the preparation of the financial statements did not detect errors. Responsible Individuals: Christa Beauchat, Chief Financial Officer Corrective Action Plan: Management is revising its processes to address the areas with audit adjustments to ensure they are not repeated in the future, including a more detailed and thorough review (by management) of account balances prior to the audit. Anticipated Completion Date: 04/30/2024

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 381208 2023-002
    Significant Deficiency
  • 381209 2023-003
    Significant Deficiency
  • 957649 2023-001
    Significant Deficiency
  • 957650 2023-002
    Significant Deficiency
  • 957651 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.696 Certified Community Behavioral Health Clinic Expansion Grants $569,059
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $510,872
93.959 Block Grants for Prevention and Treatment of Substance Abuse $214,522
16.726 Juvenile Mentoring Program $206,525
93.958 Block Grants for Community Mental Health Services $69,635
14.231 Emergency Solutions Grant Program $65,048
14.267 Continuum of Care Program $62,787
14.218 Community Development Block Grants/entitlement Grants $55,367
93.550 Transitional Living for Homeless Youth $45,764
93.150 Projects for Assistance in Transition From Homelessness (path) $43,000
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $39,735
97.024 Emergency Food and Shelter National Board Program $32,120
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $18,532
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $6,570