FAC Explorer

Finding 477892 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-07-08
Audit: 314524
Organization: Minnesota Indian Women's Sexual Assault Coalition (MN)
Auditor: Scheckter Dokken Kanter Andrews & Selcer LTD

AI Summary

  • Core Issue: There was a material weakness in internal controls, leading to misclassification of $70,000 in contributions.
  • Impacted Requirements: Management must ensure compliance with GAAP in accounting records, particularly regarding donor restrictions.
  • Recommended Follow-Up: Implement a review process for all grant agreements to accurately record donor-restricted contributions.

Finding Text

Material weakness in internal control over financial reporting: Material audit adjustment Criteria: Management is responsible for maintaining its accounting records in accordance with generally accepted accounting principles (GAAP). Condition: Two contributions with donor restrictions were recorded as without donor restriction. Context: Identified by the auditor during testing of revenue in the financial statement audit. Cause: Internal controls did not identify all contributions which included donor restrictions. Effect or Potential Effect: As a result of this condition, $70,000 was reclassified from revenue and net assets without donor restrictions to revenue and net assets with donor restrictions. Recommendation: We recommend the Organization provide review for all grant agreements to ensure amounts restricted by the donor are recorded with donor restriction. Responsible Official’s Response: Agree. Corrective Action will be for the AIOA Controller to consult with and collaborate with the AIOA CFO on the determination of the revenue treatment of grants and contributions received from private foundations to ascertain the existence of conditions and/or donor imposed restrictions.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 477884 2022-002
    Significant Deficiency
  • 477885 2022-002
    Significant Deficiency
  • 477886 2022-002
    Significant Deficiency
  • 477887 2022-002
    Significant Deficiency
  • 477888 2022-002
    Significant Deficiency
  • 477889 2022-002
    Significant Deficiency
  • 477890 2022-001
    Material Weakness
  • 477891 2022-001
    Material Weakness
  • 477893 2022-001
    Material Weakness
  • 477894 2022-001
    Material Weakness
  • 477895 2022-001
    Material Weakness
  • 1054326 2022-002
    Significant Deficiency
  • 1054327 2022-002
    Significant Deficiency
  • 1054328 2022-002
    Significant Deficiency
  • 1054329 2022-002
    Significant Deficiency
  • 1054330 2022-002
    Significant Deficiency
  • 1054331 2022-002
    Significant Deficiency
  • 1054332 2022-001
    Material Weakness
  • 1054333 2022-001
    Material Weakness
  • 1054334 2022-001
    Material Weakness
  • 1054335 2022-001
    Material Weakness
  • 1054336 2022-001
    Material Weakness
  • 1054337 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
16.557 Tribal Domestic Violence and Sexual Assault Coalitions Grant Program $186,839
16.841 Voca Tribal Victim Services Set-Aside Program $172,735
16.027 National Clearinghouse on Sexual Assault of American Indian and Alaska Native Women $106,716
16.575 Crime Victim Assistance $18,162
16.526 Ovw Technical Assistance Initiative $11,997
93.496 Family Violence Prevention and Services/culturally Specific Domestic Violence and Sexual Violence Services $1,047