Finding Text
Significant Deficiency over Financial Reporting and Noncompliance over Financial Reporting
Repeat Finding: Yes
Condition:
For the year ended June 30, 2022, St. Ambrose Housing Aid Center, Inc. (the Organization) did not complete the 2022 financial statement audit until May 2023. Also, due to turnover within the Organization, it took an extended amount of time to gather the required documents and support for the audit. Thus, the reporting package was not submitted to the Federal clearing house until after the regulatory deadline of March 31, 2023.
Criteria:
The Organization is responsible for maintaining an adequate system of internal controls over financial reporting in order to initiate, authorize, record and process and report financial data reliably in accordance with generally accepted accounting principles in the United States of America.
Cause:
The Organization did not have the June 30, 2022, financial records closed timely in order to meet the deadline.
Effect:
The Organization’s 2022 audit was not completed timely, thus increased risk of error due to unreconciled accounts in a timely manner.
Questioned Costs:
None.
Recommendation:
We recommend that the Organization implement procedures to ensure the Organization’s activity is closed timely for the fiscal year and ensure proper documentation is maintained and available for audit.
Auditee’s Response and Corrective Action Plan:
Management agrees with the finding. Refer to Section V: Corrective Action Plan for management’s approach to correct the finding.