Finding 571733 (2023-005)

Material Weakness

Requirement

Questioned Costs

Year

2023

Accepted

2025-07-22

Audit: 362739

Organization: Helena Indian Alliance (MT)

Auditor: Jccs PC

AI Summary

Answer: The organization needs to correct its classification of net assets to avoid material misstatements in financial statements.
Trend: Previous years' financial statements contained errors due to misclassifying donor-restricted funds as unrestricted.
List: Implement stronger internal controls and accurate record-keeping to prevent future misclassifications.

Finding Text

Finding 2023-005: Restricted Net Assets Restatement - Condition and Criteria: The Organization must maintain accurate records and internal controls to ensure that financial statements are free of material misstatement, including the proper classification of net assets. During the audit, material adjustments were required to correct restricted net assets for prior years. The adjustments were necessary due to contributions and/or grant funds that had been incorrectly classified as unrestricted rather than donor-restricted. This misstatement resulted in a material errors in previously issued financial statements.

Corrective Action Plan

Finding 2023-005: Restricted Net Assets Restatement - Recommendation: We recommend implementing enhanced controls to ensure all donor and grant agreements are reviewed for restrictions upon receipt and at year-end. Restricted net asset balances should be reconciled regularly to ensure accurate financial reporting. Management’s Response: We agree with the recommendation. Management will implement enhanced controls to ensure all donor and grant agreements are reviewed for restrictions both upon receipt and as part of the year-end close process. In addition, restricted net asset balances will be reviewed and reconciled on a regular basis to ensure accurate classification and financial reporting in accordance with donor intent and applicable accounting standards.

Other Findings in this Audit

571729 2023-001

Material Weakness Repeat
571730 2023-002

Significant Deficiency
571731 2023-003

Significant Deficiency
571732 2023-004

Significant Deficiency
1148171 2023-001

Material Weakness Repeat
1148172 2023-002

Significant Deficiency
1148173 2023-003

Significant Deficiency
1148174 2023-004

Significant Deficiency
1148175 2023-005

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
93.193	Helena Urban Clinic	$4.45M
93.237	Special Diabetes Program for Indians_diabetes Prevention and Treatement Projects	$282,807
93.243	Substance Abuse and Mental Health Services_projects of Regional and National Significance	$273,140
93.788	Opioid Str	$59,026
93.638	Rocky Mountain Tribal Leaders Council Tribal Opioid Response	$10,140