Finding 498087 (2023-001)

Revenue recognition Criteria or Specific Requirement: Uniform Guidance 200.302(b)(4) states each non-federal entity must provide for “effective control over, and accountability for, all funds, property, and other assets.” Condition: Northwest Indiana Community Action Corporation (NWICA), did not reconcile its grant revenue as of December 31, 2023, which resulted in audit adjustments to revenue and receivable accounts. Effect: A significant deficiency in internal control over financial reporting exists due to audit adjustments posted during the audit to grant revenue and receivables. Cause: Historical revenue recognition practices were not carried through at year end due to a change in fiscal personnel. Auditor's Recommendation: Management should implement procedures to ensure revenue is properly reconciled and recorded in a timely manner. Audit finding 2023-001 represents a significant deficiency in internal control over compliance for Northwest Indiana Community Action Corporation's major federal programs. Questioned Costs: None Federal Program Information: Funding agency:Department of Health and Human Services Passed through:Indiana State Department of Health Title:Special Supplemental Nutrition Program for Women, Infants, and Children AL number:10.557 Award number:65247 and 77352 Funding agency:Department of Health and Human Services Passed through:Indiana Housing & Community Development Authority Title:Low-Income Home Energy Assistance AL number:93.568 Award number:WL-023-018, LI-023-018, LI-ES-023-018,and LI-024-018 Funding agency:Department of Health and Human Services Passed through:Indiana Family and Social Services Administration Title:Social Services Block Grant AL number:93.667 Award number:69746 and 59326