Finding 509625 (2023-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-11-21
Audit: 329220
Organization: Alvis, Inc. (OH)

AI Summary

  • Core Issue: Transactions were not reported in the correct accounting period due to inadequate internal controls and knowledge of accrual accounting.
  • Impacted Requirements: The 2022 financial statements were materially incorrect, affecting overall financial reporting.
  • Recommended Follow-Up: Evaluate accounting staff levels and skills, and improve documentation and training for processes and internal controls.

Finding Text

Finding 2023-003 - Prior Period Restatement Criteria: Management is responsible for reporting transactions in the proper accounting period. Condition: There were insufficient internal controls or knowledge of accrual accounting to ensure transactions reported in proper period. Cause: Due to staffing turnover and shortages one contract was signed in 2022 but the full amount of the liability was not recorded in accounts payable and property and equipment. Effect or potential effect: The 2022 consolidated financial statements were not materially correct. Recommendation: The Organization and accounting industry in general have had some significant staffing issues over the past few years that have led to the issues noted. The Organization needs to:  Assess accounting staff to ensure you have the correct number for size of Organization and proper skill set.  Ensure processes and internal controls are documented and staff has appropriate training. Views of responsible officials: See attached.

Corrective Action Plan

Acknowledgment of Additional Findings We recognize the critical importance of accurately reporting transactions within the appropriate accounting periods and acknowledge the internal control weaknesses that contributed to Findings 2023-002 (Federal Audit Clearinghouse Filing - Prior Period Restatement) and 2023- 003 (Prior Period Restatement). Actions Taken and Planned 1. Staffing Assessment Our organization has undergone changes within our grant leadership team. A new Grant Director was appointed in May 2023, who was not involved in the 2022 federal grant concerns . We have full confidence in our grant team's ability to report transactions in a timely and accurate manner. 2. Documentation of Processes The grants team is currently reviewing its processes and internal controls to ensure they are up to date. Moreover, we are implementing new grant reporting measures that will provide a comprehensive overview of all grants and their respective dates of receipt, thereby enhancing our understanding of the overall grant environment. 3. Alvis Staff Responsible: Angela Thompson, Grants Director and Jacqueline Neal, VP of Finance.

Categories

Reporting Equipment & Real Property Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 509623 2023-001
    Material Weakness Repeat
  • 509624 2023-002
    Material Weakness
  • 1086065 2023-001
    Material Weakness Repeat
  • 1086066 2023-002
    Material Weakness
  • 1086067 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $703,417
93.788 Opioid Str $379,752
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $170,302
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $126,050
16.575 Crime Victim Assistance $85,047
17.270 Reentry Employment Opportunities $82,799
16.593 Residential Substance Abuse Treatment for State Prisoners $40,770