Finding 567907 (2024-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-27
Audit: 360252
Organization: Disability Rights South Dakota (SD)

AI Summary

  • Core Issue: The Organization lacks effective internal controls to reconcile year-end financial balances, leading to necessary audit adjustments.
  • Impacted Requirements: Compliance with reporting standards for balance sheet accounts and the Schedule of Expenditures of Federal Awards (SEFA).
  • Recommended Follow-up: Implement regular reconciliations for significant accounts and SEFA balances, especially at year-end, to prevent misstatements.

Finding Text

Finding 2024-002: Adjustments to Financial Statements and Schedule of Expenditures of Federal Awards Federal Program Affected: Developmental Disabilities Basic Support and Advocacy Grants Compliance Requirement: Reporting Questioned Costs: None Condition and Cause: During our engagement, we posted several audit adjustments. Adjustments included entries to cash, prepaids, receivables, lease assets, lease liabilities, accounts payable, accrued liabilities, net assets, and the schedule of expenditures of federal awards (SEFA). The Organization does not have internal control processes to reconcile year-end balances. Criteria and Effect: All balance sheet accounts and SEFA balances should be reconciled to supporting schedules. These adjustments were not identified as a result of the Organization’s existing internal controls and could have resulted in a material misstatement of the Organization’s financial statements and SEFA. Repeat Finding from Prior Year: No Recommendation: All significant balance sheet accounts, net assets and federal expenditures reported on the SEFA should be reconciled to supporting schedules and adjusted regularly. At a minimum, such reconciliations should be completed at year end. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.

Corrective Action Plan

Finding No. 2024-002: Adjustments to Financial Statements and Schedule of Expenditures of Federal Awards Responsible Individuals: Ona Arnold, Director of Operations and Finance Corrective Action Plan: The Organization will seek outside consulting to train existing personnel on accrual accounting and assistance with year-end adjustments. Anticipated Completion Date: September 30, 2025

Categories

Reporting

Other Findings in this Audit

  • 567908 2024-004
    Material Weakness
  • 567909 2024-002
    Significant Deficiency
  • 567910 2024-004
    Significant Deficiency
  • 1144349 2024-002
    Material Weakness
  • 1144350 2024-004
    Material Weakness
  • 1144351 2024-002
    Significant Deficiency
  • 1144352 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.138 Protection and Advocacy for Individuals with Mental Illness $428,700
96.009 Social Security State Grants for Work Incentives Assistance to Disabled Beneficiaries $247,307
93.630 Developmental Disabilities Basic Support and Advocacy Grants $218,060
84.161 Rehabilitation Services Client Assistance Program $213,206
84.240 Program of Protection and Advocacy of Individual Rights $132,288
93.618 Voting Access for Individuals with Disabilities-Grants for Protection and Advocacy Systems $124,365
93.873 State Grants for Protection and Advocacy Services $39,270
93.843 Acl Assistive Technology State Grants for Protection and Advocacy $34,770