Finding 570522 (2023-002)

Material Weakness
Requirement
CL
Questioned Costs
$1
Year
2023
Accepted
2025-07-07
Audit: 361514
Organization: Codeva, Inc. (VA)
Auditor: Keiter

AI Summary

  • Core Issue: The Organization lacks proper controls for financial accounting and reporting, leading to unrecognized unearned grant revenue.
  • Impacted Requirements: Internal controls related to recording, reviewing, and overseeing financial functions are inadequate.
  • Recommended Follow-Up: Implement monthly reconciliations of grant revenue and expenses, with a review process to ensure accuracy.

Finding Text

Material Weakness – As discussed at Finding 2023-001, the Organization does not have proper controls related to recording, review, and oversight of the financial accounting and reporting functions. Because of this material weakness in internal controls, the Organization did not identify unearned grant revenue. Procedures should be implemented to reconcile grant revenue and expenses on a monthly basis and the reconciliation should be subject to a review process for accuracy.

Corrective Action Plan

The Organization has engaged a management consulting firm with expertise in financial accounting and reporting to implement additional review and oversight procedures in its financial policies.

Categories

Questioned Costs Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 570521 2023-001
    Material Weakness
  • 570523 2023-003
    Material Weakness
  • 570524 2023-004
    Material Weakness
  • 570525 2023-001
    Material Weakness
  • 570526 2023-002
    Material Weakness
  • 570527 2023-003
    Material Weakness
  • 570528 2023-004
    Material Weakness
  • 570529 2023-001
    Material Weakness
  • 570530 2023-002
    Material Weakness
  • 570531 2023-003
    Material Weakness
  • 570532 2023-004
    Material Weakness
  • 1146963 2023-001
    Material Weakness
  • 1146964 2023-002
    Material Weakness
  • 1146965 2023-003
    Material Weakness
  • 1146966 2023-004
    Material Weakness
  • 1146967 2023-001
    Material Weakness
  • 1146968 2023-002
    Material Weakness
  • 1146969 2023-003
    Material Weakness
  • 1146970 2023-004
    Material Weakness
  • 1146971 2023-001
    Material Weakness
  • 1146972 2023-002
    Material Weakness
  • 1146973 2023-003
    Material Weakness
  • 1146974 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
47.076 Stem Education (formerly Education and Human Resources) $332,613
47.070 Computer and Information Science and Engineering $96,436