Finding 524229 (2023-007)

Material Weakness
Requirement
GHN
Questioned Costs
-
Year
2023
Accepted
2025-02-21

AI Summary

  • Core Issue: Many general ledger accounts were not balanced or reconciled monthly, leading to inaccurate financial statements.
  • Impacted Requirements: Monthly reconciliations are necessary to ensure financial reports are accurate and reliable.
  • Recommended Follow-Up: Implement a process for timely monthly reconciliations and ensure board reviews to maintain financial integrity.

Finding Text

Preparation of Financial Statements Condition: Many of the Organizations' general ledger accounts were not in balance with supporting details and were not reconciled throughout the year on a monthly basis. Criteria: Financial Statement accounts should be reconciled on a monthly basis to ensure proper financial reports. Cause: Balancing of the financial statements was not kept up every month. Effect: The financial statements looked at every month are not accurate and this could be misleading. Recommendation: We recommend that all financial statement accounts be reconciled on a timely basis so that all financial reports being reviewed are accurate. Response: Financial statements will be reconciled on a monthly basis and reviewed by the board. Adjustments that need to be made will be made in a timely manner to ensure the continued integrity of the financial statements.

Corrective Action Plan

Material Weakness Finding: Financial Statement accounts should be reconciled on a monthly basis to ensure proper financial reports. Questioned Costs None Status Sustained Corrective Action At the end of each fiscal quarter, all Balance Sheet accounts, and significant revenue and expense accounts, are reconciled to the appropriate supporting documentation by the Chief Financial Officer or designated individual. In addition, the CFO, or designated individual, prepares the necessary adjusting journal entries for the reconciliations. The reconciliations and adjusting journal entries are then submitted to the CEO for review and approval. In cases when the CFO designates other finance department staff to reconcile significant revenue and expense accounts, the CFO will review and approve the reconciliation and adjusting entries. Once approved and signed off/approved the journal entries are entered into the accounting system. At year-end, the same process is completed as part of the fiscal year closing process to ensure all accounts are accurate before the arrival of the auditors. Once, the year-end adjusting entries have been approved and posted to the accounting system, the year-end financial statements are prepared by the CFO. These financial statements, along with the footnote disclosures, are then reviewed and approved by the Operations Committee of the Board of Directors to ensure they are prepared in accordance with generally accepted accounting principles. The related supporting documentation is kept on file for future auditing purposes.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 524228 2023-006
    Significant Deficiency
  • 524230 2023-008
    Material Weakness
  • 524231 2023-006
    Significant Deficiency
  • 524232 2023-007
    Material Weakness
  • 524233 2023-008
    Material Weakness
  • 524234 2023-006
    Significant Deficiency
  • 524235 2023-007
    Material Weakness
  • 524236 2023-008
    Material Weakness
  • 524237 2023-003
    Significant Deficiency Repeat
  • 524238 2023-004
    Material Weakness Repeat
  • 524239 2023-005
    Material Weakness Repeat
  • 1100670 2023-006
    Significant Deficiency
  • 1100671 2023-007
    Material Weakness
  • 1100672 2023-008
    Material Weakness
  • 1100673 2023-006
    Significant Deficiency
  • 1100674 2023-007
    Material Weakness
  • 1100675 2023-008
    Material Weakness
  • 1100676 2023-006
    Significant Deficiency
  • 1100677 2023-007
    Material Weakness
  • 1100678 2023-008
    Material Weakness
  • 1100679 2023-003
    Significant Deficiency Repeat
  • 1100680 2023-004
    Material Weakness Repeat
  • 1100681 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $656,735
93.575 Child Care and Development Block Grant $368,953
14.267 Continuum of Care Program $264,221
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $134,001
16.540 Juvenile Justice and Delinquency Prevention $99,533
14.218 Community Development Block Grants/entitlement Grants $64,600
10.558 Child and Adult Care Food Program $52,202
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $51,526
93.558 Temporary Assistance for Needy Families $36,717
16.017 Sexual Assault Services Formula Program $17,116
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $14,490
14.231 Emergency Solutions Grant Program $11,908
16.588 Violence Against Women Formula Grants $9,844
97.024 Emergency Food and Shelter National Board Program $4,425