Finding 522375 (2023-001)

Material Weakness
Requirement
ABCHILN
Questioned Costs
-
Year
2023
Accepted
2025-02-07
Audit: 341658
Organization: Blue Ride Health Center, Inc. (VA)

AI Summary

  • Core Issue: Internal controls were lacking due to delays in reconciling general ledger accounts, impacting financial accuracy.
  • Impacted Requirements: Failure to prepare and reconcile supporting schedules led to material misstatements in financial statements.
  • Recommended Follow-Up: Management should regularly monitor and reconcile all accounts, investigating and correcting discrepancies promptly.

Finding Text

Criteria: Internal controls of an entity should include reconciliation of accounts in the general ledger to supporting schedules and prior year audit. This allows management to identify and correct misstatements in a timely manner and make informed decisions regarding the operations of the entity. Cause: Due to significant turnover in the financial reporting and accounting function, supporting schedules for certain general ledger accounts were not prepared or reconciled in a timely manner. Effect: There were inconsistencies in accounting for transactions and unnatural balances that resulted in material misstatements of the financial statements before audit adjustments. Recommendation: We recommend that management perform regular monitoring and reconciliation of all accounts in the general ledger to the respective supporting schedules and subledgers. Differences should be investigated and corrected in a timely manner. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan.

Corrective Action Plan

Management will maintain supporting schedules and prepare timely reconciliations to the general ledger on a monthly basis. Required adjustments will be communicated to the management of the accounting function and posted to the general ledger. Management will conduct a final review of the monthly financials prior to finalization, ensuring all requested correcting adjustments have been made and any unnatural balances have been investigated and corrected.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.224 Community Health Centers $1.02M
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $21,075