Finding 478665 (2022-003)

➢ 2022-003 Compliance Deficiencies, (General Ledger): The organization agrees and has transitioned from the rarely used Abila system of FY 2022 to the QuickBooks automated system. This allowed the Accounting Manager to record expenditures in the General Ledger as well as update and restructure our Chart of Accounts. In addition, the Accounting Manager has assigned project codes that facilitate segregation between restricted and unrestricted accounts. Our Executive Team has also worked with the Payroll provider, One Digital, to update our Time and Effort system to ensure accurate reporting of employee time. This ensures that time is captured and charged to the correct program. The following summary represents procedural updates to our General Ledger and Chart of Accounts: Opening/Closing the General Ledger: 1. The Accounting Manager accesses Quickbooks. a. Process: Go to (B-D) below. b. Select Account and Settings c. Advances d. Accounting e. The first month of the fiscal year “January” f. First month of revenue tax year “same as the fiscal year” g. Accounting Method – “Accrual” h. Close the books “1/31/2022” Example i. Allow changes are viewing a warning and SAVE. Financial Statements: At the request of the Chief Executive Officer, the Accounting Manager prepares a monthly Balance Sheet and Profit and Loss statements which are available with Quickbooks. This is shared with the Board at its monthly meeting. Bank Reconciliation: 2. The Accounting Manager prepares the monthly bank reconciliation through the Quick Books “Reconcile” tab. Updated Via Hope Chart of Accounts: Revenue 80110 Amplify Austin 80115 Fees & Registrations 80120 Contributions 80125 Indirect Revenue 80130 Sales 80135 Grant Other Income Total Revenue Gross Profit Expenditures 60000 Payroll and Benefits 60101 Fringe Transfer 60102 Payroll - 401K 60103 Payroll - Benefits 60104 Payroll - Fees 60105 Payroll - Legal 60106 Payroll - Social Security and Other Taxes 60107 Payroll - W/C 60108 Payroll - Wages 60110 Wage Transfer 60111 Wages - Other Total 60000 Payroll and Benefits 60112 Payroll Fee 66106 Social Security and Other Taxes 70101 Bank Fees 70102 Chargebacks 70200 Contractors 70201 Apprentice 70202 Certification 70203 Consultant 70204 Consultant (RI) 70205 Contract Training 70206 Evaluation 70207 Labor - Payroll 70208 Placement Services 70209 Stipend 70210 Supervisor 70211 Workshop Total 70200 Contractors 70301 Donation 70305 Equipment 70401 Memberships & subscriptions 70501 Professional Fees 70502 Insurance 70600 Operating Supplies 70601 Postage and Shipping 70602 Printing/Fax 70603 Supplies Total 70600 Operating Supplies 70700 Travel and Other 70701 Airlines 70702 Events 70703 Lodging 70704 Meals/Catering 70705 Travel Total 70700 Travel and Other 70801 Libraries for Health 70805 Marketing 70810 Recovery Institute 70815 Scholarships 70820 Storage 70825 Training 70835 Utilities 70840 Website 70850 Miscellaneous 70855 Software Total Expenditures Net Operating Revenue Net Revenue This represents a summary of the corrective steps taken to strengthen our internal controls and satisfy auditor findings. 3. Attached is a listing of our current chart of Accounts: