Finding Text
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