Finding 398249 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2024-05-22
Audit: 306926
Auditor: Ata PLLC

AI Summary

  • Issue: Accounts receivable were not tracked or recorded properly, leading to significant deficiencies.
  • Impact: This resulted in material misstatements in revenues and receivables, requiring write-offs due to missing documentation.
  • Follow-up: A new accounts receivable tracking system is now in place, along with improved internal controls to prevent future issues.

Finding Text

2022-001, Accounts receivable not being properly tracked. Condition: Accounts receivable were not being properly tracked and recorded. Criteria: Per the Uniform Guidance, a significant deficiency exists when there is a failure to reconcile accounts receivable in a timely or accurate manner. Cause: Former finance manager had multiple events in her personal life that were preventing her from focusing on her job and was unable to properly track receivables. Effect: Material misstatement in revenues and receivables that had to be written off due to lack of documentation. Recommendation: We recommend a system of internal controls be developed and put in place to ensure adequate tracking of receivables. Management response: This has been done as of the date of the audit. Former finance manager was replaced and a new accounts receivable tracking system was put into place.

Corrective Action Plan

Former finance manager had been replaced by the time the audit began. Interim finance manager, Stephanie Polites wrote off all uncollectable or undocumented accounts receivable, and implemented a new tracking and monitoring system to be reviewed on a periodic basis. No issues noted since implementation.

Categories

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 974691 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.658 Foster Care_title IV-E $857,992
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $97,828
93.556 Promoting Safe and Stable Families $51,782