Finding Text
A material weakness relating to the Organization's compliance with the Uniform Guidance are reported in the Independent Auditor's Report on Compliance for Each Major Federal Program and Reporting on Internal Control over Compliance Required by the Department of Health Services Audit Guide. Finding 2023-001 is reported as a material weakness. Material Weakness in Internal Controls over Compliance. Condition: Management did not implement internal controls over reporting and review of allowable costs. It was noted while testing key controls over Arbor Place's financial records. Criteria: Arbor Place must establish and maintain effective internal controls over the financial award that provides reasonable assurance that the non-Federal entity is managing the Federal Award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award per CFR § 200.303. These requirements detail the information that must be included in Arbor Place’s internal controls. Cause: Management did not design and implement internal controls to review financial records.