Finding Text
Financial Statement Preparation
Identification data: Family Violence Prevention and Services/State Domestic Violence Coalitions, Assistance Listing No. 93.591, Agreement Identifying No. 2201NEFSC6, No. 2301NESDVC, No. 2101NESDC6, and No. 2101NESTC6, and U.S. Department of Health and Human Services – Injury Prevention and Control Research and State and Community Based Programs, Assistance Listing No. 93.136, Agreement Identifying No. NUF2CE002550 and No. NUF2CE002484.
Criteria: SAS 115 requires communication, in writing, to management and those charged with governance, of material weaknesses identified in an audit.
Condition and context: The Coalition does not have an internal control system designed to provide for the preparation of the financial statements being audited, including the schedule of expenditures of federal awards and note disclosures.
Cause: The Coalition’s accounting personnel do not have the expertise to prepare the financial statements, including note disclosures and the schedule of expenditures of federal awards in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
Effect or Potential Effect: The control deficiency is a material weakness that results in a reasonable possibility that a material misstatement of the financial statements will not be prevented, or detected and corrected, on a timely basis.
Identification of a Repeat Finding: New finding.
Recommendation: The Coalition should continue to rely on the board for review of the financial statements, including note disclosures and the schedule of expenditures of federal awards. The Coalition may consider searching for a qualified volunteer to review the Coalition’s financial statements.
Responsible Official’s Response: The Coalition’s accounting staff will complete ongoing training to supplement their current skills. Financial professionals will be sought when reviewing potential board member candidates.