Finding No. 2023-001: Financial reporting – Material Weakness
Managements Response / View of Responsible Officials:
The organization will implement the following corrective actions for FY 2024 to remediate and address the cause of the finding.
• Target date for implementation is June 30, 2024.
• The responsible party will be Rebecca Mankin, Interim Chief Financial Officer (CFO).
• The organization will implement a refined month-end checklist for all monthly entries to be completed by assigned finance staff.
o The organization will ensure that all staff are trained adequately to manage any assigned task.
o All monthly entries are required to be reviewed and approved by the Interim CFO or designee prior to posting to the general ledger within our Accounting Software.
o All appropriate backup documentation will be saved and stored within the Finance Directory.
• The organization will implement balance sheet reconciliations to be prepared and completed by Finance Staff Accountants, along with a review performed monthly by the Interim CFO or designee.
o All balance sheet and revenue accounts will be reconciled to external data for verification monthly.
• The Interim CFO was hired on February 3, 2024, and is currently assessing the team’s capacity and competency for required duties. Outsourced accounting staff will be employed until such time as existing staff are properly trained, and new permanent staff are recruited.
• The Interim CFO will document accounting policies and procedures to reflect the new month-end processes and provide training to staff on current and future policies.
• The Interim CFO will ensure that Finance Staff will receive at minimum of 25 hours of training annually related to GASB, GAAP, Governmental Financial Reporting, or other related accounting trainings.
o All trainings will be tracked and documented for record retention.
• The Interim CFO will ensure that any staff involved in Financial Reporting has the technical expertise to help with the preparation, review, and analysis of the financial statements.
• The organization will implement a grants project tracking system to better help with grants, contract reporting, and compliance.