Finding Text
Fiscal Internal Controls
Condition: IMPACT Community Action Partnership, Inc. (IMPACT) did not reconcile cash, grant
revenue, accounts receivable, or refundable advances during fiscal year 2023.
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.”
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, 2022, audited financial statements
resulted in significant delays in reconciliations and preparing for the September 30, 2023 audit.
Repeat: Yes - Years as Repeat Finding: Three 2022-001
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.