Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency
Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date.
Views of Responsible Officials and Planned Corrective Actions: The Executive Director will work with the Director of Grants and Finance, once the position is filled, along with a contracted accounting company, to review and revise the agency’s accounting policies and procures. To ensure proper oversight, all procedures and reports will be reviewed by the Board’s Finance Committee, followed by a final review and approval of the Full Board of Directors of Joseph’s House & Shelter.
The agency is actively working on several financial management improvements with the support of an accounting firm providing technical assistance. An employee time tracking initiative has been put in place in 2024, along with efforts to convert to a more robust fund accounting system and implement automated accounts payable and payments through a web-based platform. Throughout these transitions, the agency will conduct a detailed review of grant funds, balances, and receivables. These improvements are expected to automate a significant portion of financial transaction postings, reducing manual labor and allowing Finance Department staff to focus on other critical duties. The new systems will be incorporated into an updated accounting policies and procedures document, ensuring adherence to streamlined processes that will expedite the claiming process and enable timely financial reporting.