Finding 496352 (2023-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-09-10
Audit: 319229
Organization: Nutrition Services, Inc. (MN)
Auditor: Abdo LLP

AI Summary

  • Core Issue: Significant misstatements were found in grants receivable and federal revenue accounts, requiring material adjustments at year-end.
  • Impacted Requirements: Management lacked adequate procedures to identify and correct financial statement misstatements.
  • Recommended Follow-Up: Review and update year-end processes to ensure all accounts are accurately reflected before closing.

Finding Text

Condition: During our audit, a material adjustment was needed to adjust accounts to correct balances at year end. Significant accounts affected include grants receivable and federal revenue accounts. Management should have procedures in place to identify misstatements in the financial statements. As a result of the processes and procedures in place, the financials were not being properly updated for grants receivable and federal revenue accounts. Accounts were materially misstated. The audit firm noted the misstatement and presented an adjusting journal entry to correct the misstatement during the audit. We recommend the Organization review and update its year-end processes to ensure all accounts are current at year end. Management agrees with the finding.

Corrective Action Plan

We will work closely with the Dancing Sky Area Agency on Aging to make sure our numbers match throughout the year.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 496353 2023-003
    Significant Deficiency Repeat
  • 1072794 2023-002
    Significant Deficiency
  • 1072795 2023-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $1.18M
93.053 Nutrition Services Incentive Program $145,351