Finding 568820 (2024-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-06-29

AI Summary

  • Issue: Unrecorded transactions, especially payroll, were not corrected on time despite account analyses and reconciliations.
  • Requirements: Internal controls must ensure timely recording of all transactions to avoid material reporting errors.
  • Follow-up: Improve internal control procedures to address deficiencies and prevent future reporting errors; management agrees and has a corrective action plan in place.

Finding Text

Condition: Account analyses and reconciliations were performed, however, unrecorded transactions, including those related to payroll, were identified but were not corrected in a timely manner. Criteria: Internal controls should be in place to ensure that transactions are recorded in a timely manner. Cause: Internal controls were inadequate to ensure that all transactions are recorded in a timely manner. Effect: The financial statements had material reporting errors that needed to be corrected during the audit. Questioned Costs: This finding did not result in any questioned costs. Recommendation: We recommend the Agency improve internal control procedures to identify and correct deficiencies that are resulting in reporting errors. Views of Responsible Officials and Planned Corrective Action: Management agrees with this audit finding. See the accompanying Corrective Action Plan.

Corrective Action Plan

Corrective Action Plan: GECAC Finance Department has a Financial and Data Processing System that is followed in regards to posting transactions. GECAC’s Finance department has been challenged due to a shortage of staff since COVID in 2020. As a result, GECAC has experienced a tremendous amount of turnover making it extremely difficult to stay on task with all duties. Controls have been implemented to ensure timely record keeping of all fiscal transactions: The Finance department is now fully staffed. When reconciling monthly bank statements, any transactions that are listed as an outstanding item will be researched and the necessary entries will be done to fix the problem so that the item is reconciled before the next month’s statement is issued. When running the monthly balance sheet and revenue/expense statement, any transactions that are incorrect and/or not posted, staff will make the adjusting entry(s) to correct the issue immediately. We currently have a full time Payroll/Fiscal Assistant in place. That staff has implemented a check list to ensure that all payroll transactions are recorded during the correct period. We are currently looking into upgrading our Payroll/HR software system to ensure more efficient processes which will help with time management. We will continue to evaluate and improve the financial processes and procedures as well as work on enhancing and streamlining training for new and existing accounting personnel. Contact Person: Antoinette Nicholson, Vice President of Finance Anticipated Completion Date: September 30, 2025

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 568821 2024-001
    Material Weakness
  • 568822 2024-001
    Material Weakness
  • 568823 2024-001
    Material Weakness
  • 568824 2024-001
    Material Weakness
  • 1145262 2024-001
    Material Weakness
  • 1145263 2024-001
    Material Weakness
  • 1145264 2024-001
    Material Weakness
  • 1145265 2024-001
    Material Weakness
  • 1145266 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.569 Community Services Block Grant $685,235
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $593,009
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $579,506
14.872 Public Housing Capital Fund $403,388
84.047 Trio_upward Bound $387,740
93.052 National Family Caregiver Support, Title Iii, Part E $321,212
94.011 Foster Grandparent Program $187,052
93.558 Temporary Assistance for Needy Families $186,055
17.235 Senior Community Service Employment Program $101,628
93.053 Nutrition Services Incentive Program $93,721
94.002 Retired and Senior Volunteer Program $81,779
17.259 Wia Youth Activities $46,937
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $31,682
17.277 Workforce Investment Act (wia) National Emergency Grants $29,966
93.324 State Health Insurance Assistance Program $20,628
93.778 Medical Assistance Program $16,538
93.071 Medicare Enrollment Assistance Program $12,501
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $9,732
14.218 Community Development Block Grants/entitlement Grants $8,250
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $4,509
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $2,707
93.747 Elder Abuse Prevention Interventions Program $1,400
14.231 Emergency Solutions Grant Program $-119
17.258 Wia Adult Program $-427