Finding 50735 (2022-002)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2022

Accepted

2023-05-21

Audit: 42239

Organization: Mohawk Valley Community Action Agency, Inc. (NY)

Auditor: Efpr Group Cpa's PLLC

AI Summary

Core Issue: The Data Collection Form for the year ended July 31, 2022, was filed late due to insufficient internal controls over Federal financial reporting.
Impacted Requirements: Effective internal controls are necessary for timely submission of financial documents as per federal guidelines.
Recommended Follow-Up: Implement new accounting procedures and controls to ensure timely filing and prepare for the upcoming audit to avoid similar issues.

Finding Text

Finding Reference: (2022-002) Material Weakness Criteria - Management is responsible for establishing and maintaining effective internal controls and for the fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. Condition - The Data Collection Form for the year ended July 31, 2022 was not filed with the Federal Audit Clearinghouse within nine months after year end. Cause - The late finding resulted from a lack of internal controls over Federal financial reporting. Effect - The Data Collection Form for the year ended July 31, 2022 was not filed with the Federal Audit Clearinghouse within nine months after year end. Questioned Costs - None identified. Recommendation - Mohawk Valley Community Action Agency, Inc. should establish accounting procedures to properly identify Federal expenditures and implement controls to complete the timely submission of the Data Collection Form. Management?s Response - Mohawk Valley Community Action Agency has implemented accounting procedures to ensure proper identification of federal expenditures and timely submission of the data collection form to the Federal Audit Clearinghouse. Additionally, to avoid future delays with the audit for the year ended July 31, 2023, we are working with our auditors and are planning for timely completion of our audit and to address both findings 2022-001 and 2022-002 as follows: ? An audit entrance conference with the Board of Directors will be held on Monday, June 26th, 2023. EFPR Group will present the outline and timetable for the 2023 audit. ? The Fiscal Director will meet with EFPR Group in July prior to the fiscal year end to review and discuss the prior year audit adjustments with the goal of not having similar adjustment resulting from the 2023 audit. ? A draft trial balance will be ready at the end of September 2023. ? All reconciliations will be completed by Mid-October. ? Field work by EFPR Group will be conducted in mid-November 2023. ? An audit exit conference with Board of Directors will be scheduled for Monday, December 11th, 2023 to present draft financial statements for 2023. ? The audit will be finalized and submitted to the Federal Audit Clearing House by December 31, 2023.

Corrective Action Plan

Name of auditee: Mohawk Valley Community Action Agency, Inc. TIN: 16-0918009 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: August 1, 2021 - July 31, 2022 CAP prepared by: Amy Turner aturner@mvcaa.com Finding 2022-002 Mohawk Valley Community Action Agency has implemented accounting procedures to ensure proper identification of federal expenditures and timely submission of the data collection form to the Federal Audit Clearinghouse. Additionally, to avoid future delays with the audit for the year ended July 31, 2023, we are working with our auditors and are planning for timely completion of our audit and to address both findings 2022-001 and 2022-002 as follows: ? An audit entrance conference with the Board of Directors will be held on Monday, June 26th, 2023. EFPR Group will present the outline and timetable for the 2023 audit. ? The Fiscal Director will meet with EFPR Group in July prior to the fiscal year end to review and discuss the prior year audit adjustments with the goal of not having similar adjustment resulting from the 2023 audit. ? A draft trial balance will be ready at the end of September 2023. ? All reconciliations will be completed by Mid-October. ? Field work by EFPR Group will be conducted in mid-November 2023. ? An audit exit conference with Board of Directors will be scheduled for Monday, December 11th, 2023 to present draft financial statements for 2023. ? The audit will be finalized and submitted to the Federal Audit Clearing House by December 31, 2023.

Other Findings in this Audit

50736 2022-002

Material Weakness Repeat
50737 2022-002

Material Weakness Repeat
50738 2022-002

Material Weakness Repeat
50739 2022-002

Material Weakness Repeat
50740 2022-002

Material Weakness Repeat
50741 2022-002

Material Weakness Repeat
50742 2022-002

Material Weakness Repeat
50743 2022-002

Material Weakness Repeat
627177 2022-002

Material Weakness Repeat
627178 2022-002

Material Weakness Repeat
627179 2022-002

Material Weakness Repeat
627180 2022-002

Material Weakness Repeat
627181 2022-002

Material Weakness Repeat
627182 2022-002

Material Weakness Repeat
627183 2022-002

Material Weakness Repeat
627184 2022-002

Material Weakness Repeat
627185 2022-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.871	Section 8 Housing Choice Vouchers	$1.42M
93.600	Head Start - Covid-19	$762,961
81.042	Weatherization Assistance for Low-Income Persons	$722,612
93.569	Community Services Block Grant	$480,093
93.667	Social Services Block Grant	$375,015
10.558	Child and Adult Care Food Program	$360,211
93.569	Community Services Block Grant - Covid-19	$295,239
94.011	Foster Grandparent Program	$274,827
21.023	Emergency Rental Assistance Program	$198,994
10.561	State Administrative Matching Grants for the Supplemental Nutrition Assistance Program	$123,606
93.600	Head Start	$118,061
93.575	Child Care and Development Block Grant - Covid-19	$97,767
93.568	Low-Income Home Energy Assistance	$80,397
17.259	Wia Youth Activities	$43,520
14.218	Community Development Block Grants/entitlement Grants - Covid-19	$7,000