Finding 392375 (2022-001)

Material Weakness Repeat Finding
Requirement
BL
Questioned Costs
-
Year
2022
Accepted
2024-04-05
Audit: 302731
Auditor: Wipfli LLP

AI Summary

  • Core Issue: IMPACT faced delays in issuing the September 30, 2022, audited financial statements, impacting the accuracy of financial information.
  • Impacted Requirements: Timely reconciliations are essential for accurate reporting and compliance with Uniform Guidance, which mandates audits within nine months post-period.
  • Recommended Follow-Up: Implement procedures for timely and accurate account reconciliations to strengthen internal controls and prevent future issues.

Finding Text

Condition: IMPACT Community Action Partnership, Inc. (IMPACT), experienced significant delays in issuing the September 30, 2022, audited financial statements which were due June 30, 2023. IMPACT was making adjustments to the year ended September 30, 2022, general ledger to reconcile unusual fund balances, indicating they were not reviewed during the year. Criteria or Specific Requirement: An accounting system should provide timely and accurate information for management. The reconciliation of account balances is an integral internal control activity to determine that stated account balances are accurate and fairly reported. Organization management and accounting personnel should reconcile general ledger accounts to subsidiary ledgers and other supporting documents in a timely and effective manner. Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “ effective control over, and accountability for, all funds, property, and other assets.” Furthermore, Uniform Guidance 200.512(a) requires audits to be submitted by nine months after the end of the audit period. Effect: Without performing adequate account reconciliations, information provided to management is inaccurate. Also, the probability that fraud or material errors will occur and go undetected generally increases. Cause: Rapid growth of new funding without a corresponding increase in fiscal personnel, combined with the late issuance of the September 30, 2021, audited financial statements resulted in significant delays in reconciliations and preparing for the September 30, 2022 audit. Repeat: Yes - Years as Repeat Finding: Two 2021-001 Auditor's Recommendations: We recommend IMPACT implement procedures to ensure accounts are reconciled timely and accurately. View of Responsible Officials: Management agrees with the finding and has developed and begun implementation of a corrective action plan. Audit finding 2022-001 represents a material weakness in internal control over compliance for IMPACT Community Action Partnership, Inc.'s major federal programs. This finding has been repeated from the prior year.

Categories

Cash Management Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 392374 2022-001
    Material Weakness Repeat
  • 392376 2022-001
    Material Weakness Repeat
  • 392377 2022-001
    Material Weakness Repeat
  • 392378 2022-001
    Material Weakness Repeat
  • 392379 2022-001
    Material Weakness Repeat
  • 392380 2022-001
    Material Weakness Repeat
  • 392381 2022-001
    Material Weakness Repeat
  • 392382 2022-002
    Material Weakness
  • 392383 2022-002
    Material Weakness
  • 392384 2022-002
    Material Weakness
  • 392385 2022-002
    Material Weakness
  • 392386 2022-002
    Material Weakness
  • 392387 2022-002
    Material Weakness
  • 392388 2022-002
    Material Weakness
  • 392389 2022-002
    Material Weakness
  • 392390 2022-003
    -
  • 392391 2022-003
    -
  • 968816 2022-001
    Material Weakness Repeat
  • 968817 2022-001
    Material Weakness Repeat
  • 968818 2022-001
    Material Weakness Repeat
  • 968819 2022-001
    Material Weakness Repeat
  • 968820 2022-001
    Material Weakness Repeat
  • 968821 2022-001
    Material Weakness Repeat
  • 968822 2022-001
    Material Weakness Repeat
  • 968823 2022-001
    Material Weakness Repeat
  • 968824 2022-002
    Material Weakness
  • 968825 2022-002
    Material Weakness
  • 968826 2022-002
    Material Weakness
  • 968827 2022-002
    Material Weakness
  • 968828 2022-002
    Material Weakness
  • 968829 2022-002
    Material Weakness
  • 968830 2022-002
    Material Weakness
  • 968831 2022-002
    Material Weakness
  • 968832 2022-003
    -
  • 968833 2022-003
    -

Programs in Audit

ALN Program Name Expenditures
21.023 Covid-19 Emergency Rental Assistance Program $46.75M
93.568 Covid-19 Low-Income Home Energy Assistance $10.54M
93.568 Low-Income Home Energy Assistance $10.50M
93.569 Community Services Block Grant $1.57M
93.499 Covid-19 Low Income Household Water Assistance Program $880,459
81.042 Weatherization Assistance for Low-Income Persons $177,150
14.239 Home Investment Partnerships Program $167,180
14.218 Community Development Block Grants/entitlement Grants $150,580
14.218 Covid-19 Community Development Block Grants/entitlement Grants $103,840
93.569 Covid-19 Community Services Block Grant $29,726
97.024 Covid-19 Emergency Food and Shelter National Board Program $22,394
97.024 Emergency Food and Shelter National Board Program $-18,840