Finding 508206 (2023-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-11-18

AI Summary

  • Core Issue: The Organization failed to identify certain pass-through funding as Federal Funding for the year ending December 31, 2023.
  • Impacted Requirements: This violates monitoring standards for internal controls, which require proper identification of Federal funds.
  • Recommended Follow-Up: A designated staff member should conduct monthly reviews to ensure all Federal funds are recognized, and YWCA Greater Newburyport has agreed to implement this change.

Finding Text

Condition: The Organization did not identify certain pass-through funding as Federal Funding during the year ended December 31, 2023 Criteria: Pursuant to Standards for Internal Control in the Federal Government, Principle 16 - Perform Monitoring Activities, management should monitor its internal control system through ongoing monitoring and separate evaluations including but not limited to comparisons, reconciliations and other routine actions. Pass-through Federal funds must be indentified as such when received. Cause: Internal controls were inadequate over the identification of Federal funding. Potential Effect: Unidentified Federal funding can lead to inadequate financial and audit reporting. Recommendation - A designated staff member of YWCA Greater Newburyport should perform a monthly review and comparsion of the funding they are receiving to ensure they are recognizing all Federal funds. Views of Responsible Official - YWCA Greater Newburyport agrees with this recommendation and has amended its policies and procedures to include the monthly review of Federal funds. YWCA Greater Newburyport agrees with the recomendation and has amended its policies and procedures in 2024 to include a periodic review of Federal funds.

Corrective Action Plan

Pursuant to Standards for Internal Control in the Federal Government, Principle 16-Performing Monitoring Activities, management should monitor its internal control system through ongoing monitoring and separate evaluations including but not limited to comparisons, reconciliations and other routine actions. Young Women’s Christian Association of Newburyport, d/b/a YWCA Greater Newburyport, its Affiliate and Subsidiaries’ is in the process of developing internal control procedures over reconciliation and recognition of Federal funds. The person responsible for this periodic reconciliation of Federal funds will indicate their review keeping documentation of their analysis on file with the accounting office. John Feehan, Executive Director, is responsible for implementing this corrective action plan.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.31M
14.239 Home Investment Partnerships Program $1.02M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $9,880