Finding 518154 (2023-001)

Inadequate controls over the preparation of accounting records. Type of Finding Material Weakness Criteria Per 2 CFR 200, internal control for recipients and subrecipients should have processes designed and implemented to provide reasonable assurance regarding the 1)effectiveness and efficiency of operations; 2) reliability of reporting for internal and external use; and 3) compliance with applicable laws and regulations. Condition Organization employees performing their assigned duties were unable to timely reconcile accounts to subsidiary records or timely identify billing issues and concerns resulting in under billings on grants and material adjustments as part of the audit process. Cause Due to staff turnover during the audit period, the Organization had not developed policies, procedures and controls to provide for the appropriate monitoring of accounting procedures, nor had they developed a succession plan in the event of significant employee turnover. Effect The Organization’s books and records were not timely available for audit thus causing the audit to filed late with numerous regulatory agencies. Questioned costs None Repeat finding No Recommendation The Organization should develop policies, procedures and controls to ensure that accounts are reconciled on a timely basis by employes performing their assigned duties and monitoring is performed to ensure such is completed. View of Management Management concurs with the above finding.