FAC Explorer

Finding 554033 (2024-005)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-04-03
Audit: 352642
Organization: Neighborworks Housing Services of Pueblo, Inc. (CO)
Auditor: Biggskofford

AI Summary

  • Core Issue: Southern Colorado Community Lending lacks separate cash accounts, leading to difficulties in tracking intercompany transactions.
  • Impacted Requirements: This situation violates adequate internal control functions necessary for accurate financial reporting.
  • Recommended Follow-Up: Implement separate cash balances, conduct monthly reconciliations, and ensure timely settlement of intercompany balances.

Finding Text

Lack of Separate Cash Accounts for Southern Colorado Community Lending Material Weakness Condition: The inability to automate intercompany transactions and the lack of monthly reconciliations of intercompany balances make it difficult to determine the correct year-end cash balance. Criteria: Adequate internal control functions over the financial reporting process. Cause: Oversight by management. Effect: Inaccurate financial reporting that compromise the accuracy and transparency of financial reporting between the entities. Recommendation: We recommend further separation of cash balances in SCCL, monthly reconciliations of intercompany balances, and timely settlement of intercompany balances. View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Finding Number: 2024-005 Lack of Separate Cash Accounts for Southern Colorado Community Lending Planned Corrective Action: The implementation of our new accounting software, Sage Intacct, will automate intercompany transactions. Additionally, management intends to review all bank accounts, consolidate or add accounts, as appropriate, and settle intercompany balances in a timely manner in fiscal year 2024-2025. Person Responsible for Corrective Action: Emily Garbiso, Chief Finance Officer Anticipated Date of Completion: 08/01/2025

Categories

Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 554029 2024-001
    Material Weakness
  • 554030 2024-002
    Material Weakness
  • 554031 2024-003
    Material Weakness
  • 554032 2024-004
    Material Weakness
  • 554034 2024-006
    Material Weakness
  • 554035 2024-007
    Material Weakness
  • 554036 2024-008
    Material Weakness
  • 1130471 2024-001
    Material Weakness
  • 1130472 2024-002
    Material Weakness
  • 1130473 2024-003
    Material Weakness
  • 1130474 2024-004
    Material Weakness
  • 1130475 2024-005
    Material Weakness
  • 1130476 2024-006
    Material Weakness
  • 1130477 2024-007
    Material Weakness
  • 1130478 2024-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $666,624
14.247 Self-Help Homeownership Opportunity Program $403,800
93.093 Health Profession Opportunity Grants $382,000
21.025 Small Dollar Loan Program $37,738
14.169 Housing Counseling Assistance Program $31,944