January 27, 2025
U.S. Department of Health and Human Services
Southwestern Minnesota Opportunity Council, Inc.
respectfully submits the following corrective action plan for the year ended December 31, 2022.
Name and address of independent public accounting firm:
Abdo
5201 Eden Avenue, Suite 250
Edina, MN 55436
Audit period: January 1, 2022 - December 31, 2022
The findings from the December 31, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule.
Findings - Internal Controls over Financial Reporting
2022-001 Material Weakness in Internal Controls over Financial Reporting
Recommendation: We recommend the Organization continue to review of all balance sheet and income statement accounts at year end. Additionally, we recommend continuing to improve processes and procedures around year and month end close.
Planned Action: SMOC experienced several significant changes in personnel and software that contributed to a vulnerable financial position. To date, SMOC recognizes the importance of ensuring that adequate resources are in place to prevent irregularities and improve operation efficiency. SMOC has invested financial resources in accounting software (Sage Intacct) and hiring an in-house Finance Director. Additionally, SMOC has developed a solid process of evaluating financial reports on a monthly and year-end basis to prevent and/or detect any errors in reporting. The current process consists of adequate segregation of duties, management review, robust accounting software, and documented protocols. The planned action will be to ensure that all relevant staff are trained on internal control protocols; Finance Director and managerial staff will examine financial reports on a monthly basis; and internal control protocols will be evaluated by the Executive Director and the Finance Director on a regular basis.
If the U.S. Department of Health and Human Services has questions regarding this plan, please call Darci Goedtke, Executive Director, at 507-376-4195.