Finding Number: 2024-001
Management’s Response
The management of Elevate Youth Services (EYS) acknowledges the importance of having a formal,
documented approval process for journal entries—one that is clear both in form and in practice.
Context:
Historically, the Executive Director and the Director of Finance jointly reviewed internal financial
reports. During these reviews, items that appeared inconsistent were examined in detail to ensure
proper coding, and adjustments were made as needed. However, documentation of this review
process was not consistently maintained.
Corrective Action Plan
1. Oversight at the Board Level
In mid-FY25, EYS established a Board Finance Committee. One of its top priorities has been to
ensure the development of an auditable review process for financial reports and key transactions,
including journal entries. The committee began by reviewing FY24 journal entries, conducting an
internal audit of randomly selected entries to assess supporting documentation and the
appropriateness of coding. No issues were identified during this review.
2. Increased Staffing to Strengthen Internal Controls
EYS has expanded its finance team to improve internal controls. The addition of new staff enables
greater segregation of duties, allowing for multiple levels of review of journal entries at both the
Director of Finance and Executive Director levels.
3. Review and Revision of Fiscal Policies
To support the transition from cash basis to accrual basis financial reporting in FY24, financial
reporting and review processes were performed, but often on an irregular basis. With the formation of
the Board Finance Committee and the expansion of finance staff, EYS is now actively assessing and
updating its fiscal policies to better align with the needs of the organization’s financial operations and
reporting standards.
EYS is committed to strengthening its financial practices and has fully embraced the implementation
of a formal, consistent process for the review and approval of journal entries.