Finding Text
Information on the Federal Program: U.S. Department of the Treasury, Coronavirus State and Local Fiscal Recovery Funds Assistance Listing No. 21.027, Grant Agreement Nos. SLFPR1965, 23-11-0264, and 23-11-304.
Criteria: SAS 115 requires communication, in writing, to management and those charged with governance, of material weaknesses identified in an audit.
Condition and context: The Health Center does not have an internal control system designed to provide for the preparation of the financial statements being audited, including the schedule of expenditures of federal awards and note disclosures.
Cause: The Center’s accounting personnel do not have the expertise to prepare the financial statements, including note disclosures and the schedule of expenditures of federal awards in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
Effect or Potential Effect: The control deficiency is a material weakness that results in a reasonable possibility that a material misstatement of the financial statements will not be prevented, or detected and corrected on a timely basis.
Identification of a Repeat Finding: New finding.
Recommendation: The Center should continue to rely on the board for review of the financial statements, including note disclosures and the schedule of expenditures of federal awards. The Center may consider searching for a qualified volunteer to review the Center’s financial statements.
Responsible Official’s Response: The Director of CFP, with support from the Executive Committee of the Board, has appointed a certified CPA to create financial statement preparation procedures for the existing financial staff. The certified CPA will review the financial workpapers and statements monthly.