Finding 43358 (2022-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-07

AI Summary

  • Core Issue: The Agency lacks effective internal controls for timely reporting of program results.
  • Impacted Requirements: Compliance with 2 CFR 200 is not met, affecting reports for Crime Victim Assistance and Temporary Assistance for Needy Families.
  • Recommended Follow-Up: Implement a robust internal control system to ensure timely submission of all required reports.

Finding Text

U.S. Department of Justice ? Crime Victim Assistance ? ALN 16.575 and U.S. Department of Health and Human Services ? ALN 93.558 ? Temporary Assistance for Needy Families Criteria: 2 CFR 200 requires that internal controls over compliance exist to ensure that the Agency complies with the requirements for reporting of program results. Condition: The Agency did not have an effective internal control system in place in regard to internal controls over compliance for reporting timely. Three of six reports and one of six reports were not submitted timely for Crime Victim Assistance and Temporary Assistance for Needy Families, respectively. Effect of Condition: The lack of internal controls could lead to a misstatement of financial and program reports. Cause of Condition: The Agency did not implement an internal control process over timely reporting. Recommendation: The Agency should implement an internal control system that includes the timely submission of reports.

Corrective Action Plan

Relief After Violent Encounter, Inc. (dba SafeCenter) For the Year Ended September 30, 2022 Relief After Violent Encounter, Inc. (dba SafeCenter) respectfully submits the following corrective action plan for the year ended September 30, 2022. Auditor: Clark Schaefer Hackett 3505 Coolidge Road East Lansing, Michigan 48823 Audit Period: Year ended September 30, 2022 Contact Person: Hannah Gottschalk The findings from the September 30, 2022 Schedule of Findings and Responses are discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2022-001: Material adjustments to the Schedule of Expenditures of Federal Awards (SEFA). Recommendation: The Agency should implement internal controls over financial reporting to ensure the proper inclusion of all federal awards on the SEFA. Actions to be taken: The organization concurs with the facts of this finding and is implementing procedures to prevent this in the future. The procedure will require an additional layer of review of the SEFA by both the Executive Director and Outsourced Finance Director prior to being issued to the auditors. Finding 2022-002: Material adjusting journal entry. Recommendation: We recommend the Agency enhance its internal controls over financial reporting with steps such as review of accrued payroll adjustments. Actions to be taken: The organization concurs with the facts of this finding and is implementing procedures to prevent this in the future. The procedure will require an additional layer of review of adjustments to accruals by both the Executive Director and Outsourced Finance Director prior to reports being issued to the auditors. Findings 2022-003: Late filing of the Single Audit with the Federal Audit Clearinghouse (FAC). Recommendation: The Agency should implement internal controls over the financial reporting to ensure the proper inclusion of all federal awards on the SEFA which allows the audit to be completed timely. Actions to be taken: The organization concurs with the facts of this finding and has procedures in place to ensure the timely submission of the data collection form and the reporting package. The additional review procedure for SEFA preparation will significantly reduce the possibility of any errors moving forward. Finding 2022-004: Reporting. Recommendation: The Agency should implement an internal control system that includes the timely submission of reports. Actions to be taken: The organization concurs with the facts of this finding and has procedures in place to ensure the timely submission for reporting.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 43359 2022-004
    Material Weakness
  • 619800 2022-004
    Material Weakness
  • 619801 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $427,987
10.766 Community Facilities Loans and Grants $323,651
93.558 Temporary Assistance for Needy Families $259,823
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $70,495
97.024 Emergency Food and Shelter National Board Program $18,876
10.558 Child and Adult Care Food Program $9,157