Finding 391440 (2023-001)

Significant Deficiency Repeat Finding
Requirement
BL
Questioned Costs
-
Year
2023
Accepted
2024-04-01
Audit: 301926
Auditor: Wipfli LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls related to allowable costs and reporting compliance for the major program.
  • Impacted Requirements: Compliance with 2 CFR 200, Section 200.303, which mandates effective internal controls over Federal awards.
  • Recommended Follow-Up: Review and strengthen internal controls to ensure compliance and prevent recurrence of this issue.

Finding Text

Finding Number: 2023-001 Description: Review of Account Reconciliations and Financial Statements Repeat Finding: Yes Type of Finding: Significant deficiency in internal controls over the allowable costs and reporting compliance requirements Questioned Costs: None Major Program: AL # 64.033, VA Supportive Services for Veteran Families Program, 2020-OR-430-22; 2020-OR-430-LT; 2020-OR-430-HL; 2020-OR-430-23; 2020-OR-430-SS Condition: The condition described in finding 2023-001 in the financial statement findings section represents a significant deficiency in internal controls over the allowable costs and reporting compliance requirements for the Organization’s major program. Criteria: 2 CFR 200, Section 200.303 (Uniform Guidance) requires the following: The non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal Statutes, regulations, and terms and conditions of the Federal award.

Corrective Action Plan

Corrective Action: Susan Matlack Jones (SMJ) took over as CAPO’s fiscal service provider in July of 2022. The first six months were spent largely cleaning and correcting journal entries from FY22 – a significant task. CAPO did not begin to receive truly accurate and trustworthy financial statements until early in 2023. CAPO also experienced two staff losses in the finance department from March through May of 2023. In light of our growth and increased administrative needs, we revised our job posting to increase the level of fiscal skill and responsibility needed for the Finance Manager role. In September of 2023, CAPO was successful in hiring a Finance and Grants Manager with experience in federal fund accounting for Community Action and in SSVF (our major grant). Since that time, he has organized, revamped, and significantly improved internal processes to assure timely review of all finances and reconciliations and works closely with SMJ to assure overall accuracy. Person Responsible: Janet Allanach, CAPO Executive Director Timing for Implementation: Complete as of October 2023

Categories

Allowable Costs / Cost Principles Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 391441 2023-002
    Significant Deficiency
  • 967882 2023-001
    Significant Deficiency Repeat
  • 967883 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
64.033 Va Supportive Services for Veteran Families Program $2.63M
14.267 Continuum of Care Program $290,733
93.569 Community Services Block Grant $49,529